As Global Markets continue their free fall and experts are trying to fully understand a post-Brexit world. Traders and bankers in London are now waiting to see which city may replace London as the Financial Center of Europe.
Morgan Stanley has already indicated they are considering alternatives for a European Headquarters which include either Dublin or Frankfurt. JP Morgan has indicated that they could move as many as 4000 jobs to another European location.
Dublin an English Speaking Financial Center
Dublin offers some advantages over some of the other European centers. The transition for many companies would be far easier to an English speaking country like Ireland. Ireland also offers one of the most favorable tax rates and is home to many multinational corporations already. Dublin also offers a rich talent pool and highly ranked universities.
Frankfurt a Financial Center Rich in History
Frankfurt offers another viable option as the new financial center. Germany is currently the EU’s largest economy and is represented by the Deutsche Boerse. Frankfurt is also where the European Central Bank is located.
Tax Advantages in Luxembourg
Luxembourg has been mentioned by those familiar with the fund industry as a likely destination for fund jobs leaving London. Luxembourg is currently the second largest investment fund center in the world behind the United States. Similar to Ireland Luxembourg has a favorable tax rate. Nearly 50% of all residents are foreigners. Luxembourg is also the home to 143 Banks which are among some of the strongest in the EU.
Paris Looks To be The Financial Center of Europe
Paris has also been mentioned as an alternative to London and a new destination for financial services jobs. Paris is the home to banking giants like Société Générale and BNP Paribas. It is also the home to Euronext.
When it comes to European centers there is no shortage of options as alternatives to London. In the coming weeks and months, we can be assured that each city listed will be making the case to be the next financial center of the European Union.
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