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

Comments are designed to communicate and discuss the features of an enterprise or event, as well as to find out the interesting questions on it.

Society
Soaring rents are costing London families more than £300 extra a month compared with eight years ago, it was claimed today. One million private renters are having to find £3,600 a year more, costing households £3.8 billion. The scale of the squeeze was revealed in figures produced by Labour to support its policy of rent controls - writes standard.co.uk Shadow housing secretary John Healey said rent rises since 2010 have cost families in England and Wales a...
Society
In a first, shoppers in south London can now buy groceries in Sainsbury’s without going to the checkout or self-service scanner. By just using their phone, shoppers can skip the queue all together and scan what they need themselves in the Clapham North branch of the chain store. The supermarket is trialling a new scan, pay and go technology that will enable customers to buy products by scanning them on their smart phone. The trial is thought to be the firs...
Society
A parrot stuck on aLondon rooftreatedfirefighters who came to its aid this morning with a torrent of expletives, it is claimed. Officers from the London Fire Brigade were called to rescue Jessie the Macaw parrot, who had spent three days languishing on a neighbour's roof after escapingher home in Cuckoo Hall Lane, Edmonton. The firefighters were called amid concerns for Jessie's welfareafter owners and the RSPCAfailed to get her down. Inan effort to bond w...
Society
New fingerprint scanners are set to be rolled out across London, giving Met Police officers greater power than ever to identify members of the public in the street. A number of forces have used similar devices since 2012 but the UK's largest police force has developed its own technology , dropping the cost so it can roll out six times as many scanners in the field. The cheaper product means that 600 of the Met's 30,000 officers can run a suspect's fingerpr...
Society
Hundredsof fish have died inLondon rivers as the hot weatherconcentrates pollution in the water, environmentalists said today. The heat has caused extremely low water levels and depleted oxygen, which is crucial for marine life  - writes standard.co.uk The affected waterways includeBeverley Brook, which runs through Richmond Park , the Wandle in south-west London, and the River Lea and River Roding in the east. Images taken by the Moo Canoes clean-up team...
Incidents
'He would come up behind her and whisper in her ear as an excuse to get too close to her'. The girl, who was 16 when she started, was sexually harassed, intimidated and had her hours cut after she rejected her supervisor's advances. She was working 10 hours a week as a receptionist at Pizza Hut Delivery when she was targeted by Sultan Tanha - writes independent.co.uk Stratford employment tribunal in east London ruled he subjected her to "unjustified threat...
Society
A British holidaymaker has died following a suspected fight in a popular tourist resort on the Spanish island of Ibiza . The man, named by local police as 23-year-old Conor Lee, is thought to have died following an altercation with a group of men in San Antonio in the early hours of Sunday morning - writes independent.co.uk Police have now launched an investigation into the death of the man, who was understood to be staying at the Bergatin Hotel around 10...
Society
Rail commuters are being warned to expect a 3.5 per cent fare increase in 2019, which could see passengers on some longer distance routes paying up to £150 more each year for their travel. Exact fare rises will not be confirmed until the July Retail Prices Indexconsumer inflation measure is released by the Office for National Statistics on Wednesday. However, economists at both Investec and EY Item Club both forecast that the figure, which the Department f...
Society
There is no new money in thegovernment’s flagship £100mfund to eradicate rough sleeping within a decade, the housing secretary has admitted - writes independent.co.uk Charities had welcomed the fund as a significant step towards helping the estimated 4,751 people sleeping rough on English streets on any given night. But speaking on BBC Radio 4’s Today programme, James Brokenshire said the cash had been“reprioritised” from existing budgets in his department...