Brexit: Paris launches major push to lure London firms across Channel after Britain quits EU

Paris officials hope to lure London firms to the French capital
AFP/Getty Images

Paris today launched a major campaign to lure London’s financial firms across the Channel after Brexit.

More than 80 key business bosses, who were gathered at the Shard in central London, were told that the French capital could offer “stability” as the only “global city” that will be left in the EU when Britain quits.

At the same time, the Mayor of Paris Anne Hidalgo invited an estimated 300,000 French nationals in London to “come back” to France.

Valérie Pécresse, president of the Paris region, led the charm offensive to encourage more banks, financial technology firms, green finance companies and start-ups to look to the French capital for an EU foothold once the UK leaves — rather than to Frankfurt or Dublin.

French appeal: Paris mayor Anne Hidalgo
Jean-Baptiste Gurliat

She argued that it was “most likely” that Britain will lose “passporting rights” for financial firms, which allow them to do business without barriers across the EU, so they would be seeking a base across the Channel. She accepted the French authorities had to challenge what she described as “preconceived ideas about France” being a high tax economy, heavily-regulated and anti-banks, with President François Hollande having previously described the financial world as the “true adversary”.

However, Ms Pécresse argued: “When we looked at comparative taxation, comparative labour laws, the difficulty for hiring or firing people, or changing the rules in between the companies, we realised that in fact it was much easier than people thought in France, than for example in Germany.

“We are a very stable choice, we are very near London. The market is in Europe, the clients are in Europe, the tech is in Paris, the quality of life is in Paris.”

However, Ukip MEP Patrick O’Flynn hit out at the “laughable attempt by Paris, a fast declining city, to take financial services’ business from London”.

Socialist mayor Ms Hidalgo, though, laid out her vision for Paris to be Europe’s green financial centre, trumpeting the city as “strong on the digital economy”, having “the best engineering schools, universities” and the “biggest start up campus in the world”, called Station F. In an appeal to her fellow citizens who have made London their home, she said: “I say to the French in London: if you want to come back, you should know that we are ready for you to come back.”

Gérard Mestrallet, chairman of Paris Europlace, which promotes the city’s financial centre, made clear how France is vying against Germany, Ireland and other EU countries to attract key businesses from the UK.

He said: “Paris has a leading position and offers the best opportunities in the asset management industry — which is twice the size that of Germany — and also in corporate and investment banking, insurance and fintech.”

Paris vice-mayor Jean-Louis Missika added: “With more than 1,200 fintech enterprises in France, Paris leads continental Europe in this sector, ahead of Berlin.”

Patrick Ollier, president of Greater Paris metropolis, stressed that it was uniting to offer new opportunities for urban and economic projects. Paris last year launched a drive to tempt financial institutions from London with the slogan “Tired of the fog? Try the Frogs!”.

‘France will have  to wait for a new economy to form’

French expats in London gave their country’s charm offensive a mixed response, with some saying Paris needed to do more to rival London  as a global financial centre.

About 300,000 French citizens live in the UK and the vast majority are in London, mostly in South Kensington and Kentish Town. Expats today admitted there was nervousness about the impact that Brexit would have on their lives. 

Marie-Laure Balistreri, 50, a language teacher at the French Institute in South Kensington, said: “Maybe Paris will start to be an attractive place for business, not just for tourism and culture. Whether people go back will depend on what the conditions of Brexit will be.”

Entrepreneur Richard Rudy, 25, from Paris’s 16th arrondissement, described Ms Hidalgo’s comments as “pretty useless”. Mr Rudy, who founded start-up firm Min, based in Shoreditch, said: “For me to go back, the UK would have to leave the EU completely in the strictest way and we are turned into a lonely island. 

“But France would have to wait for a new economy to form. I work in an industry that is big in London but not in Paris. They would have to move into technology quickly to catch up.”

Another expat added: “It makes sense for the French government to try to capitalise on what’s going on but there’s a lot of changes needed before Paris catches up with the City.”

Ben Morgan

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