Frankfurt predicts Brexit jobs boost at London's expense

Frankfurt predicts Brexit jobs boost at London's expense

A recently published report states that, contrary to the fears of Brexit-sceptics, the UK's exit from the European Union will create as many as 80,000 new jobs - the majority of which will be in financial services. The only problem for Brexiteers is that the jobs will be in Frankfurt rather than London.

The report was written by Frankfurt Main Finance, a lobby group for the city's financial sector and it predicts that the UK's divorce from the European Union will create at least 50,000 new banking jobs in Frankfurt, many of them on the technical services side.

In contrast, Boris Johnson, a lead figure in the 'Leave' campaign, promised in excess of 300,000 jobs once the UK struck its own bilateral trade deals with countries outside the EU.

So far, just over a year after the referendum result, the main developments in the UK's banking market have been the number of large multinational banks announcing plans to relocate their European headquarters to the likes of Frankfurt.

Morgan Stanley, Citigroup and JP Morgan have all announced plans to relocate their European trading centres to Frankfurt, while the likes of Standard Chartered, Sumitomo Mitsui and Deutsche Bank similarly plan to move resources from London to Frankfurt.

Meanwhile Frankfurt is also confident that it can be the new home for euro clearing once Brexit takes place. The post-trade currency market is currently based in London and clears an estimated €930bn worth of euro-denominated trades every day. 

"It's not the City of London but perhaps it can become a little London," said Oliver Schwebel, chief executive of Frankfurt Economic Development, who presented the report's findings at a press conference in Frankfurt.

Howver there are doubts as to whether the relatively subdued nightlife in Frankfurt would be enough to attract thousands of City workers or whether they would be welcomed in Frankfurt. Schwebel faced questions from German journalists about whether an influx of thousands UK bankers would be bad news for Frankfurt's local residents and would push up house prices to which he said that the expected jobs would most likely be for risk and regulatory experts as opposed to investment bankers.

Comments: (1)

A Finextra member
A Finextra member 27 August, 2017, 09:13Be the first to give this comment the thumbs up 0 likes

I hope Boris  knows where the extra 300,000 (Skilled or semi skilled I would hope) people are going to come from to fill these jobs.....  Some could be  retirees - taking on a new role, some will be from Universities, and hopefully many will be from well educated school leavers taking up vocational training roles within industry to learn On the Job!   Lets hope we dont need to many recruits from the EU!!!