European cities hunt for London jobs

As London's financial sector prepares for Britain's exit from the EU, cities like Frankfurt, Dublin and Paris are working to attract firms looking to relocate.

Hubertus Vaeth is not about to let a good crisis go to waste - writes news.com.au.

With London-based banks, insurers and asset managers scrambling to prepare for Britain's exit from the European Union, he's putting out the welcome mat for anyone looking for a new EU base.

Vaeth, who heads Frankfurt's financial services trade association, estimates 10,000 jobs could move to the German city from London as a result of the impending upheaval.

He isn't concerned that some see him as a vulture.

"I was once called a Frankfurt wolf in sheep's clothing, which I took as a badge of honour," Vaeth says during a visit to London.

"Yes, I'm taking jobs away. But those jobs are not remaining here if I wouldn't do it. ... So it's not me taking them away; it's me directing them to Frankfurt as they go anyway."

Pressure is growing by the day on financial firms with EU bases in London to decide when to activate their Brexit contingency plans.

The biggest question is how many jobs to move out of London and where to move them, as the companies are concerned their ability to do business across the EU's market of 500 million people may be restricted after the UK leaves the bloc in March 2019.

But Britain's negotiations with the EU about a future relationship are painfully slow.

Amid the growing unease, cities like Frankfurt are pressing their case.

So far, the German city is neck-and-neck with Dublin in grabbing business, according to data released late last month by the global consulting firm EY.

The company, which tallies the public statements of 222 of the largest financial service firms on its "Brexit Tracker," says 13 have confirmed they are moving staff or operations to Dublin compared with 12 for Frankfurt.

Luxembourg is third with six.

"The industry is still getting ready for a cliff edge," said Omar Ali, EY's UK financial services leader.

He said it's too early to say if the British government will be able to secure a two-year Brexit transition period, which would give firms more time to adapt, and whether that would affect their decisions on jobs.

"At this stage firms are still only moving what they have to."

Ali put that number at around 1,500 jobs so far.

But EY estimates that as many as 13,000 jobs from these 222 businesses are at risk.

Some executives estimating as many as 100,000 leaving London in the long-term. Some 2.2 million people work in British financial services and related professions, according to the industry association, TheCityUK.

In cities like Frankfurt, there is some early evidence of this impending shift in jobs.

Demand for prime office space has risen in each of the past three quarters, pushing rents higher, according to a report released November 1 by Vaeth's group, Frankfurt Main Finance.

The report is based on data from four large commercial real estate companies - BNP Paribas, Colliers, Jones Lang LaSalle and Savills.

By contrast, London's real estate market is weakening.

Add your vacancies to our site.

news.com.au
London jobs Europeancities
If you notice an error, highlight the text you want and press Ctrl + Enter to report it to the editor
I recommend
No recommendations yet

Comments

Post your comment to communicate and discuss this article.

Лучшее - городу
Каждому городу Казахстана свой полезный сайт! Теперь мы освещаем новости шести крупных городов Казахстана - Караганды, Шымкента, Атырау, Актау, Алматы и Астаны.  Сегодня информационная картинка дня в Казахстане в большей мере состоит из новостей двух столиц. Национальные медиа массивно освещают новости из здания парламента, а городские новости представлены только громкими происшествиями или вопиющими случаями. Городские же сайты создают локальную повестку...
Society
An EE customer has said she was stalked by an ex-partner who worked at the firm, after he accessed her personal data without permission. Francesca Bonafede's number was switched to a new handset and her address and bank details were accessed. She said the company failed to take the data breach seriously and she had to involve police. EE "sincerely apologised" to Ms Bonafede, and said the employee no longer worked for the company. 'They didn't seem concerne...
Society
West Ham say they have handed over all of their evidence to the police after completing a "thorough and immediate" investigation into racist abuse shouted at Liverpool's Mohamed Salah. The incident happened during Monday's 1-1 draw at London Stadium. Egypt striker Salah, 26, was filmed on a mobile phone from a section of home supporters as he was taking a corner. "The club is unequivocal in its stance - such abuse will not be tolerated," West Ham said in a...
Society
A body seen in the wreckage of the plane carrying Cardiff City footballer Emiliano Sala and pilot David Ibbotson has been recovered, investigators said. Remotely operated Vehicles (ROVs) were used in ‘challenging conditions’ to pull the body out of the water ‘in as dignified a way as possible’ the Air Accidents Investigation Branch (AAIB) said on Wednesday night. The body is being taken to Portland to be passed over to the Dorset coroner for examination, t...
Society
The US president, who has repeatedly criticised the military alliance, would meet with heads of state in London, Nato secretary general Jens Stoltenberg announced on Wednesday. It would be Mr Trump's second visit to Britain since his election, having jetted in amid swathes of protest last July. I am pleased to announce that allies have agreed that the next meeting of Nato heads of state and government will take place in London in December 2019. The meeting...
Society
Rolf Harris was jailed for five years and nine months in 2014 but released on licence in May 2017 Credit: PA Officials are investigating a report that disgraced entertainer Rolf Harris walked onto the grounds of a primary school and waved at pupils. The convicted sex offender went onto the premises of Oldfield Primary School near his home in Bray, Maidenhead, to talk to a sculptor working in the grounds, the Daily Mirror reported. Harris, who was jailed fo...
Crime
Two men have been arrested on suspicion of murder after a teenager was stabbed to death. Police and London Ambulance Service were called to Wolsey Court, off Westbridge Road in Battersea, at 7.52pm on Tuesday following reports of a stabbing. A 19-year-old man was found with stab injuries and died at the scene at 8.36pm despite paramedics battling to save his life. The stabbing took place less than half a mile from Prince George's primary school, Thomas's B...
Society
The girl, who has been named Roman by nurses, was found at around 10pm on Thursday in the park in Roman Road in East Ham.  Police said Roman was wrapped in a white towel and placed in the shopping bag on the ground next to a bench in the small children's play park.  The baby was rushed to hospital where she was in a stable condition on Friday morning, the Metropolitan Police said.  Roman was discovered by grandmother-of-one Rima Zvaliauskiene, 50, just 100...
Society
The operation to recover the doomed plane carrying Emiliano Sala off Guernsey could be hampered by days of poor weather as the man brought in by the footballer's family to find him said he could be in the wreckage. The English Channel is being battered by torrential ran, 40mph winds and 10ft waves with the poor conditions set to continue - and worsen - until the end of the week, MailOnline can reveal today. The families of the £15million striker and his pi...