French Minister claims Paris could overtake London as Europe’s financial hub

PARIS COULD overtake London as Europe’s most important financial centre in a matter of years, French Finance Minister Bruno Le Maire said, after days of wooing American and European bankers in the Swiss Alps and gilded Palace of Versailles.

In an interview with Reuters at the World Economic Forum in Davos, Mr Le Maire pointed to France’s strong regulatory framework, the business-friendly reforms being implemented by President Emmanuel Macron and the allures of Paris as a place to live.

“There will be a new leader after Brexit,” he said.

“I see the possibility for France to become in the coming years the most important financial centre in Europe and the UK is in Europe.”

Paris is one of several continental cities, along with Frankfurt, Dublin and Amsterdam, that want to lure business from City of London banks that are eager to stay based in Europe’s Single Market after Britain leaves the EU in March 2019.

But early indications are that they will see a trickle rather than a flood of jobs move in 2018, with the prospect of a “softer” Brexit discouraging large redeployments of staff.

A Reuters survey of 123 firms showed that around 10,000 finance jobs would be shifted out of Britain or created overseas in the next few years if the UK is denied access to the Single Market.

That chimes with 10,000 losses the Bank of England said is plausible on Brexit Day in March 2019. In recent months however, some bankers have suggested it could be far less.

Frankfurt is by far the most popular destination for the new roles, with Paris a distant second. However, Paris was given a boost in November, when the EU decided to relocate its London-based banking authority to the French capital after Britain leaves the bloc.

The French government has staged a high-profile campaign to lure banks away from London.