In the wake of the surprise UK Brexit vote France is making a major play for London’s banking business.
France’s financial sector have long sought a change in attitude towards the industry from the French government. Subject to high taxes and often hostile political comment, many in the industry believe the Brexit vote may start to usher in a new era.
French Prime Minister Manuel Valls backed up that view when he said: “We want to build the financial capital of the future. In a word, now is the time to come to France.” Paris now sees an opportunity to challenge London’s dominance of Europe’s banking business. Valls said: “We are bringing solutions today to companies that are asking questions and expecting answers to prepare for the future.”
He said France would make the expat tax regime even more favourable, allowing expats and French nationals returning from abroad to receive tax benefits for eight years rather than five at present. The scheme allows deductions on revenue earned abroad and includes deductions for non-salary perks such as paying for employees’ children’s school fees.
Valls added that France would set up a one-stop administrative point for foreign firms looking to set up in the country, and these services would be provided in languages other than French. Other measures to attract foreign workers would also include schools opening as many classes for foreign children in their native language as necessary.
The change in tone from the French government is stark. During the 2012 election Francois Hollande described the finance industry as the main enemy. Now he appears to be rolling out the red carpet to banking professionals.
Paris is already the biggest centre for many markets, including investment management and corporate bond issuance. Now it is seeking to capitalize on the Brexit vote. However it isn’t the only city seeking to steel London’s crown, Madrid and Milan have already signalled their intent. Milan’s centre left mayor Giusepee Sala has lobbied to get the European Banking Authority to choose Italy’s financial capital as its new home and plans to attract the European Medicines Agency as well.
Meanwhile in Madrid, politicians have indicated that tax breaks may be granted to attract banks and international firms looking to relocate their operations away from Britain.
All these moves play into a wider held view that British financial firms should not be able to keep the “passport” which allows access to EU markets unless Britain accepts the free movement of people, which many Brexit supporters oppose.
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Read more about other Brexit news on Angloinfo World Blogs:
- British expats – what next?
- “Oh Britain, what have we done?”
- What does ‘Leave’ mean for EU expats in the UK?
- Brits vote to Leave the EU
- How do I get a second passport?
- Should expats be panicked about the UK’s decision to Brexit from the EU?
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