“Frankfurt is one of the most important financial centers in the world and an economic engine for Hesse and Germany,” said Hessian Minister President Boris Rhein at Commerzbank’s headquarters in Frankfurt on Wednesday. The financial center on the Main is innovative, efficient, internationally competitive and crisis-resistant. “This is of great importance in times of trade conflicts, which are causing uncertainty and burdening the international financial markets. The events surrounding a possible takeover of Commerzbank by Italy’s Unicredit have also led to a new dynamic,” continued the head of government, adding: ”A strong and stable financial center is a guarantee for growth and prosperity. With the Financial Center Cabinet, we are bringing politics and the financial sector together to work out solutions and strategically develop the location.”
Key topics of the meeting included a joint proposal from the committee and the presentation of a policy paper developed by the Financial Center Task Force to the state government. The paper contains concrete demands and proposals to strengthen the financial center and is intended to be incorporated into coalition negotiations after the federal election. “The Frankfurt financial center speaks with one united voice. This paper sends a strong signal to the future federal government,” said Minister President Rhein. “We will advocate at both the federal and EU levels to improve the framework conditions for our financial hub.” The goal is to expand Frankfurt’s strengths in a targeted manner and reduce regulatory hurdles.
Deputy Minister President and Minister of Economic Affairs Kaweh Mansoori emphasized that strengthening the financial center contributes to promoting the entire German economy. “It is a fundamental pillar of our economic system and is rooted in Hesse. Frankfurt is the heart of Germany’s financial industry and holds significant international standing. We want to ensure its continued competitiveness and further strengthen it as a financial location. A crucial step was the decision to establish AMLA in Frankfurt,” said the Minister of Economic Affairs. “Today’s Financial Center Cabinet represents a united effort between key stakeholders and the state of Hesse. Together, we are addressing the current challenges. The submitted policy paper contains numerous important recommendations, such as reducing reporting obligations, leveraging new technologies, and the need to reform the debt brake. At the same time, it is a promise to the more than 70,000 employees in Frankfurt’s banking sector: we stand by your side.”
Finance Minister Alexander Lorz highlighted the necessity of defending Frankfurt’s market position in global competition. “Frankfurt holds a top position among financial metropolises. A competitive financial sector not only secures local jobs but also provides the capital needed for German companies to make necessary investments in the country’s economic future,” said the Finance Minister. He added, “Attractive framework conditions are crucial: One of the biggest obstacles is the excessive complexity and bureaucracy in regulation and supervision. Stability and security are undoubtedly important, but they are of no help if our banks and financial service providers lose their competitiveness in the process. We need competitive financial institutions with reasonable regulation so that our businesses and consumers can benefit from attractive conditions. That is why we must strategically position our financial center for the future.”
Minister President Rhein announced plans to institutionalize exchanges with financial center stakeholders. “A strong financial center is not a given. We will closely monitor developments and use future meetings to discuss progress and emerging challenges,” he stated. The aim is to establish a long-term and sustainable financial center strategy jointly supported by the business sector, academia, and policymakers.
Source: Hessian State Chancellery
Image Credit: Salome Roessler / Hessian State Chancellery