The votes have been counted and the UK has decided to leave the EU. But how will this decision affect the Financial Centre Frankfurt? Frankfurt Main Finance’s Hubertus Väth sat down with FINANCE-TV to discuss how Brexit will affect European financial centres and what Frankfurt has been doing capitalize on this opportunity. With some experts predicting that 100,000 jobs could leave London’s financial district, there is a lot at stake and Frankfurt Main Finance had all hands on deck in the hours rigth after the announcement. In cooperation with their partners, Frankfurt Economic Development and FrankfurtRheinMain GmbH, Frankfurt Main Finance launched a website, welcometofrm.com, an information hotline and a social media campaign on LinkedIn and Twitter targeted at decision makers in London’s financial sector. Watch Hubertus Väth’s full interview in the video below (German).
Days before the EU referendum in the UK, Frankfurt’s Montagsgesellschaft (Monday Society) met to discuss the possible consequences of Brexit for Europe and the Financial Centre Frankfurt. Expert panellists, including Frankfurt Main Finance’s Managing Director Hubertus Väth, weighed in on possible outcomes. The overall mood at the Montagsgesellschaft was certainly that Brexit would be negative for the European Union and Europe, but could have certain positives for the Financial Centre Frankfurt. Hubertus Väth explained after the event that, “We aren’t expecting nor do we want a Brexit to occur. Nevertheless, we will not waste a good crisis and are prepared to positively position the Financial Centre Frankfurt in the case it does.” Just four days later, all of Europe was shocked by the decision of UK citizens to leave the EU and trying to come to terms with the uncertainty that lay ahead.
On Monday, July 4, 2016, the Montagsgesellschaft convened again with the same panellists to further discuss the Brexit and its now more concrete consequences. During the last meeting, most were almost certain that a Brexit would not happen. However, the tone was quite different this week as most were only certain that Europe will face months if not years of uncertainty. The UK’s departure from the EU does, however, certainly mean that some financial institutions will need to reevaluate their London operations and very possibly relocate to another financial centre on the Continent. One example is the European Banking Authority, currently housed in London’s Canary Wharf. Hubertus Väth elaborated on this during the discussion, “Frankfurt is the natural choice for EBA’s relocation as the ECB and other bricks of the regulatory pillar are already here. EBA is one of the last missing pieces.” While this may only bring a few hundred jobs, it would also augment Frankfurt’s reputation as a regulatory hub, already being home to EIOPA, ESRB and BaFin.
Experts estimate that some 20,000 jobs could leave the Thames in for the Main. Quoting a recent study from the Boston Consulting Group, Väth explained that the Financial Centre Frankfurt actually ranks very highly amongst bank executives as an alternative to London. Amongst others, Frankfurt scores highly for economic and political stability, real estate costs, transportation infrastructure and the availability of a highly qualified workforce.
https://frankfurt-main-finance.com/wp-content/uploads/2016/07/MG_1_pic.jpg10041466David Opphttps://frankfurt-main-finance.com/wp-content/uploads/2016/02/frankfurt-main-finance-logo.pngDavid Opp2016-07-08 18:34:332016-08-30 11:53:25Montagsgesellschaft - What does Brexit mean for Frankfurt?
Frankfurt Main Finance regrets the decision of the citizens of the United Kingdom to leave the European Union. This decision affects all of Europe and extends the period of economic uncertainty, especially for the UK. Now drawn-out negotiations will have to clarify the relationship with the European Union (EU). By leaving, the UK will forfeit the benefits of membership in the EU. The consequences are still difficult to predict.
Frankfurt is well-equipped as a stable financial centre to embrace those looking for a new base of operations within the Eurozone. Frankfurt stands ready with a high-capacity real estate market as well as an excellent range of service providers, particularly in the areas of accounting, legal, communications and IT. For example, in Frankfurt you will find the DE-CIX internet exchange hub, over which more than 40% of the European internet traffic flows. Home to the European Central Bank and the German Central Bank, Frankfurt is also the centre of currency and monetary policy in Europe. The proximity to central banks is already a decisive factor for international banks in selecting a location. Additionally, as the home of the European Insurance and Occupational Pensions Authority, or EIOPA, Frankfurt is the centre for stability in the European insurance market. Compared to the lasting instability in Great Britain, Frankfurt represents openness, stability, capable infrastructure and favourable conditions.
https://frankfurt-main-finance.com/wp-content/uploads/2016/06/UK-EU-Ref.jpg500792Andreas Glänzelhttps://frankfurt-main-finance.com/wp-content/uploads/2016/02/frankfurt-main-finance-logo.pngAndreas Glänzel2016-06-24 09:01:412017-05-11 11:34:26Frankfurt Main Finance regrets the decision of the United Kingdom
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