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.

Society
Nearly 150 County of Lambton paramedics are no longer responding to non-emergency calls amid ongoing negotiations for a new contract. Job action as of last Saturday means Lambton County paramedics won’t be doing non-urgent transfers between hospitals for the next while, or keeping ambulance stations as neat and tidy, a union spokesperson says. Nearly 150 Lambton Emergency Medical Services (EMS) paramedics represented by SEIU Healthcare Local 1 stopped resp...
Society
Clapham Junction has been named London’s worst mainline train station for disruption in a survey by leading consumer title Which? Fifty-seven per cent of trains have been late or cancelled at the south London interchange since the beginning of the year, their research found. Their study found King’s Cross was the second worst, with 51 per cent of trains delayed or cancelled, followed by Victoria (47 per cent), Stratford (44 per cent) and London Bridge (44...
Society
Tube drivers on the Piccadilly Line are set to hold fresh 24-hour strike action in a row over staffing and working conditions. The RMT Union has urged members to walk out at 12:00 BST on 7 November until noon the following day - writes bbc.com The union's general secretary Mick Cash said it had become "frustrated" with Tube bosses' handling of a "full raft of issues". Transport for London (TfL) said it was "disappointed" with the new strike. Drivers on the...
Society
The Tate and the Royal Shakespeare Company (RSC) are calling for a premium to fund arts classes in England's schools. The major arts institutions say league tables and pressures on time and budgets are squeezing out important creative subjects - writes bbc.com Six thousand 11 to 18-year-olds have described how the subjects help build their confidence, in new research. The government says it is investing almost £500m in arts and music. Creative subjects hav...
Crime
Five teenagers have been jailed for fatally stabbing a man in an unprovoked attack as he returned home from an appointment with his pregnant partner. Daniel Frederick, 34, was knifed repeatedly by the group just yards from his home in Stoke Newington, Hackney. Three teenagers were convicted of murdering Mr Frederick while another two were found guilty of manslaughter. They were jailed at the Old Bailey for a combined total of at least 64 years. Judge Phili...
Society
Work at a building site near London's Olympic Park has stopped after complaints about "horrendous" smells. Nearby Mossbourne Academy said its students felt sick and local residents spoke of headaches because of smells coming from the site in Hackney Wick. The London Legacy Development Corporation (LLDC) told Telford Homes to stop work last month until a new plan to "manage the site" was approved. The LLDC and Telford Homes claimed there was no health risk....
Society
Ten of Britain's busiest railway stations have seen over half of all train services delayed by a minute or more this year, research has revealed - writes bbc.com Manchester Oxford Road had the least punctual services, with 68% delayed. Data analysis by consumer group Which? found York, Gatwick Airport and Birmingham New Street also saw less than 40% of trains arrive on time. The group said even small delays could have "a knock-on effect" on passengers' abi...
Society
Two more east London schools have closed because of an infestation of false widow spiders. John F Kennedy Special School, which has campuses in Stratford and Beckton, and Godwin Junior School, in Forest Gate, announced they would close. False widows are about the size of a 50p coin and are the most dangerous spider species in the UK. Four secondary schools and four primary schools, all in Newham, have closed for various amounts of time. Thousands of childr...
Society
London Abused Women’s Centre says an anti-sex-trafficking online ad campaign that drew scores of calls for help from women and girls was so successful, it's already planning another. London Abused Women’s Centre says an anti-sex-trafficking online ad campaign that drew scores of calls for help from women and girls was so successful, it’s already planning another. The online ads, targeting both possible trafficking victims and sex buyers, appeared or were v...