'It's PREDATORY' Ireland claims firms UNDERMINE Dublin in pursuit of post-Brexit EU base
IRELAND is being undercut by rival centres competing to host financial firms looking for a European Union (EU) base outside London after Brexit, according to officials in Dublin.
Ireland wants firms to make their post-Brexit EU bases in Dublin
Alarm bells started ringing when US insurer AIG became the biggest group so far to pick Luxembourg as its EU base and the Irish fear others may follow suit now the Brexit process is finally getting under way.
And while Britain's terms of doing business with the EU are uncertain, finance executives reportedly say privately they expect Brexit to isolate London and want to establish bases inside the bloc from where they can access the single market.
Frankfurt, Paris, Dublin and Luxembourg are the favourite alternatives to the UK capital.
Brexit could boost Dublin says Irish minister
Finance workers at their desks in Dublin
Other cities in Europe are being very aggressive in trying to win business
Rivalry is already becoming increasingly hostile with Frankfurt lobbyists reportedly warning potential suitors the Irish accent makes English incomprehensible.
AIG said its move was driven purely by Luxembourg's proximity to its European clients and its role as a founder of the EU.
But Eoghan Murphy, the minister in charge of promoting Dublin's financial centre, described "dangerous competition" between capitals.
He said: "Other cities in Europe are being very aggressive in trying to win business.
"We have always said we would not be predatory.”
Mr Murphy said he had raised concerns with Valdis Dombrovskis, one of the European Commission's most senior officials, about "creeping regulatory arbitrage", a reference to undercutting rivals with lax rules.
Eoghan Murphy, the minister in charge of promoting Dublin's financial centre
And while not naming Luxembourg, Irish officials said this was the centre that had triggered the concerns.
Mr Murphy said: ”We are hearing from various sources that companies are being offered certain incentives.
"That they are offering a back door to the single market, without the requirement to have capital to back up their entities in the European Union."
The European Commission declined to comment on the Irish complaint but one official, who asked not to be named, said it "will monitor any developments in this area closely".
Dublin's financial district is trying to attract post-Brexit business from London
Kieran Donoghue, head of International Financial Services at IDA Ireland, said he expected companies to make their choice by the end of June.
He said: "Dublin will expand. Some investments will be significant and potentially transformative.
"A number of companies have already committed to Dublin.
"The shortlist for several is between Dublin and one other centre."