Macron election could lead to an exodus from London
Paris Eurospace chief claims thousands of London jobs could be set for Paris move
by Abi Moses on 15th May, 2017 and updated 15th May, 2017 3:34pm
The chief executive of Paris Eurospace has warned that Emmanuel Macron's successful bid to become French president could be the beginning of a chain reaction, creating a mass exodus of staff from London to Paris.
Arnaud de Bresson, CEO at the French firm, designed to promote Paris as a leading European financial hub, believes bankers, asset managers and finance workers could be set to make the move from the EU-departing United Kingdom and Paris' new-found-stability under Emmanuel Macron will make it a perfect alternative.
De Bresson claimed, "The majority of the companies were waiting to hear the outcome of the French election. We are quite confident that because of the result of Emmanuel Macron, many of the companies with which we are in connection will consider the possibility to locate part of their activities in France."
With executives from several of the biggest banks currently based in London; including JP Morgan, HSBC, Goldman Sachs and UBS, admitting they may have to relocate jobs from Britain as a direct result of the Brexit vote, cities including Frankfurt, Amsterdam and Dublin have all been suggested as viable alternatives. Mr de Bresson has claimed that "Paris is very well ranked in capital markets."
With Brexit negotiations ongoing, discussions over Britain's financial passport could be crucial. The current financial passport is a system of common financial rules that enables financial firms based in the UK complete access to overseas customers and permits them to carry out activities throughout Europe.
The Financial Conduct Authority (FCA) have confirmed that an estimated 5,500 British firms rely on EU passporting rights, with a combined £9bn revenue, losing the rights could therefore be disastrous for the UK's future as a major financial hub.
De Bresson said that "Macron will provide strong support for the development of Paris financial marketplace." He continued, "He has always been a strong supporter of Paris’ financial centre, especially when he was Minister of the Economy. He pushed to explore the first reforms in France in terms of labour reforms and fiscal incentives, and because he has already announced he will prioritise reforms, we know that he is a business-minded president. We’re convinced he will deliver in terms of accelerating the reforms that we need on labour rules, social costs, as well as more stability for fiscal conditions."
Ha continued, "What we see is that it [the movement of finance workers] will not be from London to one financial centre in the EU, it will be a distribution in the different centres."
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