Paris in Brexit SNATCH: France to slash taxes in bid to grab British business
BRITISH-BASED banks are falling prey to Europe’s scheming, with a HSBC boss saying a move is beginning to look attractive.
Paris can be the new financial centre of the EU - according to the Prime Minister
France announced plans to loosen employment laws to try and lure big business away from London’s City.
French Prime Minister Edouard Philippe said he would use “all means” to make Paris the financial capital - stealing the crown from London, Britain’s capital.
And HSBC’s chief executive Stuart Gulliver said: “The package of reforms suggested last week is very, very positive.”
He warned if there is no Brexit deal and it impacts the bank’s massive operation in London the company will be forced to relocate 1,000 jobs.
HSBC's Stuart Gulliver said the bank could move 1,000 jobs out of the UK
Paris, he said, would be that place, since the French CFF bank is owned by HSBC.
He added: “There are about 1,000 jobs out of 43,000 that are employed in the UK that will be unlawful for our activities to be carried out of the UK if it’s hard Brexit.”
Some of the changes include cutting the cost of employing financial services staff in France.
France will also scrap the highest bracket of payroll tax for banks.
We want Paris to become Europe’s new number one financial hub after Brexit
A separate court will also be set up for English speaking cases after Brexit.
Mr Philippe said: “We want Paris to become Europe’s new number one financial hub after Brexit.”
Many more countries are fighting for the same top spot, including Germany’s Frankfurt, Ireland’s Dublin and Berlin in Brussels.
Banks have a deadline of July 14 to outline their post-Brexit plans for the Bank of England.
At the same conference JP Morgan Chase’s chief executive Jamie Dimon said the giant bank would be splitting between Frankfurt, France and Ireland, but mainly Germany.
He said the number of jobs moving would be based on the Brexit deal.
Mr Dimon warned the decision does not stay with JP Morgan Chase
UK 'will have to pay up' City boss slates Brexit bill
Mr Dimon warned the decision does not stay with JP Morgan Chase.
He said the EU can “simply decide” what jobs it wants done in the bloc, and they will have to move them.
According to a study by EY Dublin is emerging as a favourite for those who are considering a move.
However, of 222 financial services companies asked, only 59 made statements of intention to move.