FMF welcomes Brexit agreement – Relocation of €750 to 800 billion in assets to Frankfurt expected

The Financial Centre initiative Frankfurt Main Finance (FMF) welcomes the agreement reached last weekend between the European Union (EU) and the United Kingdom (UK). For it provides much more clarity, albeit not yet definitive. FMF also hopes, in the interests of all concerned, that the British Parliament will ratify the treaty on 11 December. However, a ratification is not certain, and a hard Brexit has not yet been averted. In addition, the European Court of Justice (ECJ) will have to decide whether Article 50 can be revoked before the end of its deadline. Thus, there is still hope that the UK could remain if the ruling of the European Court of Justice confirms this. Still, the probability is rather low.

“This makes it clear for financial institutions that the Brexit is coming. While it has become somewhat less likely, the extreme scenario of a hard Brexit without a deal in place cannot be ruled out due to the uncertain majority in the British Parliament. On the other hand, it cannot be completely ruled out that the UK will remain in the EU, but this should be regarded as highly unlikely. The path is now set for the financial institutions. The Brexit plans are being implemented,” says Hubertus Väth, Managing Director of Frankfurt Main Finance.

Based on a speech by Danièle Nouy, President of the Single Supervisory Mechanism of the European Central Bank (ECB), we know that 37 financial institutions, banks and securities trading banks have applied to the ECB for new licences or extended existing ones and have already received them or are likely to receive them shortly.

30 of these institutions have chosen the Financial Centre Frankfurt for their European headquarters. Since several of the banks will establish branches in multiple locations, FMF believes the actual figures will ultimately add up to more than the 37 mentioned by Ms Nouy. However, Frankfurt also benefits from this distribution since around half a dozen financial institutions that have opted for locations in other EU countries are nevertheless significantly expanding their presence in Frankfurt.

“All in all, we expect a transfer of 750 to 800 billion Euros in assets from London to Frankfurt, the majority of which will be transferred in the first quarter of 2019,” says Väth. “It will not remain that way.”

“As it currently stands, banks face the decision of either relocating only what is absolutely necessary or preparing for the relocation of their entire business,” Väth continues. The institutions have found different answers to this question. “As long as uncertainty persists, most institutions are likely to prefer the minimum solution. In any case, it is clear that considerable second-round effects will follow.”

FMF sees the bill to relax dismissals protections for high-income risk carriers as an important step. “Politicians made promises and delivered on them. Internationally, this is being observed very closely as it shows that the Financial Centre is being supported.”

“Accordingly, Frankfurt Main Finance believes that the second-round effects will be significant. We stand by the potential of up to 10,000 jobs moving to Frankfurt which we estimated on day 1 after the Brexit referendum. However, there are signs of a second transition phase, which is expected to last until the end of 2022, and thus a further delay. The originally expected 5 years for the relocation of jobs from the time of the referendum in June 2016 will now become 8 years.”

A significant factor in financial institutions’ decision to relocate business to the Financial Centre Frankfurt was the willingness signalled by German politicians to reconsider the issue of labour protection for risk carriers. Following its inclusion in the coalition agreements, the draft law, which is tailored specifically to risk carriers, is being consulted in the ministries. “Politicians have listened, promised and delivered,” says Väth. “This is a clear sign that the banks’ relocation to Germany is desired. It is a sign that is seen and appreciated.”

Frankfurt Christmas Market

Regional specialities and a festive sea of lights: The Frankfurt Christmas Market attracts visitors from around the globe

The Frankfurt Christmas market has a long tradition and is one of the oldest Christmas markets in Germany. Up to the year 1393 it can be proven that markets took place in Frankfurt on Christmas. The traditional centerpiece of the market is the Römerberg, which with its historic half-timbered houses provides the backdrop for one of the country’s most beautiful and largest Christmas markets. The approximately three million visitors can enjoy the festive atmosphere between the city center and Römerberg from November 26 to December 22, 2018.

The highlight of the opening ceremony will be a live-concert of the Frankfurt Opera on November 26. And until  December 22, the musical offer ranges from the performance of international Christmas carols, the playing of the tower musicians of the Old St Nicholas Church to the big ringing of the city with the simultaneous ringing of 50 bells.

To celebrate its completion, the outline of Frankfurt’s newly rebuilt Old Town can be found on the new 2018’s Glühweintasse. Those wishing to secure one of the very first cups will be able to purchase it from 26 November at the Tourist Information Römer and Hauptbahnhof, as well as directly at the market in the Frankfurt Information Hut.

Frankfurt Christmas Market - © #visitfrankfurt, Holger Ullmann

Frankfurt Christmas Market – © #visitfrankfurt, Holger Ullmann

 

Over 200 Christmas stalls

Over 200 Christmas stalls attract visitors with lovely products and treats. In addition to the classic roasted almonds, mulled wine and sausages, you can enjoy typical Frankfurt Christmas specialties such as Bethmännchen (“a little Bethmann”), hot cider and Quetenkännchen. In addition to the culinary diversity, visitors can expect classic Christmas market decoration and folk art articles, as well as modern handicrafts and typical Frankfurt goods such as ‘dippe’ (ceramic pot) and earthenware products. On the adjoining craft market in the Roman halls and the St. Paul’s Church, there is also the opportunity to search for an extraordinary Christmas present.

At the gates of the city there are also a variety of romantic Christmas markets in Odenwald, Rheingau, Taunus and Wetterau.

Christmast market tours

On December 16, the Christmas market tour “Glühwein, Geschichten & Gebäck” (Mulled wine, stories and pastries) will be offered in many languages as well as for the blind and visually impaired and the Frankfurt Christmas market specialties will be presented. Also stories about the historic and modern Frankfurt, the Christmas market and famous Frankfurt personalities are part of the tour.

Another highlight is a guided tour through the winding alleys of Frankfurt’s new Old Town. A German-speaking tour starts at 2 p.m. every day. The tour through the new Old Town is also offered to English-speaking Christmas market visitors. On six dates, starting from 1 December, English-speaking guests can enjoy the Frankfurt Old Town flair. Visitors can expect an exciting mixture of new buildings and reconstructions.

Rosa Weihnacht

At the Frankfurt Hauptwache (Main Guard) there are more Christmas market stalls, which extend the classic Christmas market area up to the shopping street Zeil and thus form a passage to Christmas shopping. On Friedrich-Stolze-Platz there is also the so-called “Rosa Weihnacht”, which is organized by the gay community of the Rhine-Main region and creates a special atmosphere with its colorful lights, unusual decoration and design.

More information.

 

Photo: © #visitfrankfurt, Holger Ullmann, www.frankfurt-tourismus.de

Green and Sustainable Finance Cluster_ Grüneburgpark Frankfurt

Green and Sustainable Finance Cluster Germany

Strengthening efforts for a sustainable future in the Financial Centre Frankfurt

A strong and responsibly acting financial sector is of utmost importance to a sustainable future – just filling the forecast gap in the level of emissions avoidance necessary for Germany to meet international obligations by 2050 requires €530 bn in investments alone, as a report published by the Green and Sustainable Finance Cluster Germany (GSFCG) points out. Read more