london frankfurt bridge welcome to …...every major bank or ﬁnancial services institution is...

LONDON FRANKFURT BRIDGE

WELCOME TO FRANKFURT

MINISTRY OF ECONOMICS, ENERGY, TRANSPORT AND REGIONAL DEVELOPMENT,

STATE OF HESSEN

TAREK AL-WAZIRMINISTER OF ECONOMICS, ENERGY,

TRANSPORT AND REGIONAL DEVELOPMENT

MINISTRY OF ECONOMICS, ENERGY,

TRANSPORT AND REGIONAL DEVELOPMENT,

STATE OF HESSEN

DR. BERNADETTE WEYLANDSTATE SECRETARY OF FINANCE

MINISTRY OF FINANCE,

STATE OF HESSEN


THE NEW ARCHITECTURE

10 / 11 AUGUST 2016


I. SOUND ASSUMPTIONS


I. SOUND ASSUMPTIONS

WHAT WILL BE THE MOST PROBABLE FUTURE STATUS FOR THE UK REGARDING THE EU?

less probableless probable

less probable

EUROPEAN ECONOMIC AREA

(EEA-MODEL)

Continued Single Market Access :

PRIVILEGED THIRD COUNTRY ACCESS

Customs Union:

WTO / GATS FRAMEWORK:

EUROPEAN FREE TRADE ASSOCIATION

(EFTA)

FRAMEWORK:

MINISTRY OF ECONOMICS, ENERGY, TRANSPORT AND REGIONAL DEVELOPMENT, STATE OF HESSEN PAGE 5

most probably

XXX

XXX

II. EU EXIT:

RISKS, EFFECTS AND STRATEGIC CHANGES

MINISTRY OF ECONOMICS, ENERGY, TRANSPORT AND REGIONAL DEVELOPMENT, STATE OF HESSEN, PAGE 7

II. EU EXIT:

EXIT RISKS AND PROBLEMATIC ASPECTS

CHANGES:

EU Passporting Rights

Euro Clearing

Extra Capital Requirements

Additional and costly regulatory environment UK vs. EU

AFFECTED BUSINESSES:

Investment Banking

Listing

Trading

Lending

Deposit taking

Payments

Regulatory and Risk Management

Legal


LONDON, 10 AUGUST 2016 PAGE 8

II. EU EXIT:

STRATEGIC REQUIREMENTS

London needs a continental partner to remain a financial Bridge to the EU

LONDON, 10 / 11 AUGUST 2016

MINISTRY OF ECONOMICS, ENERGY, TRANSPORT AND REGIONAL DEVELOPMENT, STATE OF HESSEN PAGE 9MINISTRY OF ECONOMICS, ENERGY, TRANSPORT AND REGIONAL DEVELOPMENT, STATE OF HESSEN PAGE 9


THE NEW ARCHITECTURE

XXX

XXX

10 POINTS IN FAVOUR OF FRANKFURT AS PILLAR OF THE

BRIDGE

III. FRANKFURT BEST SUITED:

MINISTRY OF ECONOMICS, ENERGY, TRANSPORT AND REGIONAL DEVELOPMENT, STATE OF HESSEN, PAGE 11


1. INTERNATIONAL FINANCIAL CENTER

Every major bank or financial services institution is already here

_ More than 155 foreign banks _ All major German banks

Financial capital market services with Frankfurts securities and derivatives exchanges

Broad offer of other financial service related services (legal, consulting, analyst)


2. PROXIMITY TO REGULATORSIII. FRANKFURT BEST SUITED:


2. PROXIMITY TO REGULATORS

Your regulators are also already there:

ECB

ESRB

EIOPA FMSA GLEIFGerman Federal Bank

BaFin


3. REGULATION – 1-STOP-SHOPIII. FRANKFURT BEST SUITED:

YOU ARE WELCOME!


3. REGULATION – 1-STOP-SHOP

BaFin offers single point of entry:

Predictable

Reliable


4. TAXESIII. FRANKFURT BEST SUITED:


4. TAXES

Overall tax levels are way lower than commonly presumed:

Effective tax rates in 2014:

BUSINESS TAX

10 -16 %

30,4 %

TOTAL

25 - 31 %

29,6 % 27,9 %

CORPORATE TAX

15 %

38,2 %

FRANCE GERMANY LUXEMBOURG UNITED KINGDOM


5. LABOUR LAWIII. FRANKFURT BEST SUITED:


5. LABOUR LAW

German labour law is highly fl exible and effective

66 % of disputes are resolved within three months

Redundancy payments are regulated by law: In practice, payments of between 0.5 and 2 salaries per year of employment are the norm

A study by the Federal Statistical Offi ce found the number of actions fi led involving labour law in 2011 (three years after the fi nancial crisis) was only 60 % of the 1995 level


6. GERMAN ECONOMYIII. FRANKFURT BEST SUITED:


6. GERMAN ECONOMY

Very stable German economy offers growing business opportunities

Bank will benefit from very reliable clients

Political stability

Top rating from Single Resolution Mechanism

Top ranked in ease-of-doing-business-index (rank 15)

_ Rankings of other prominent European countries:

_ Ireland (17) _ France (27) _ Netherlands (28)


7. FRANKFURT RHEINMAIN AREA



7. FRANKFURT RHEINMAIN AREA

Highly international workforce + communities: english broadly spoken

5.6 million inhabitants

High GDP: 216 Billion € + persistant growthNo. 2 in EU regarding the regional GDP per capita

Outstanding infrastructure (Frankfurt Airport)

Internet-Hub No. 1 in EU (plus IT-Cluster)

Frankfurt RheinMain & Neckar region:Europe’s Silicon Valley

Top universitiesStartups (360T, “Rhein-Main Startups”)

World market leaders (SAP)


8. BEST BUSINESS ENVIRONMENTIII. FRANKFURT BEST SUITED:


8. BEST BUSINESS ENVIRONMENT

Expenses low for companies and employees

Wages adequate Schools affordable: many international schools

available

Excellent public schools and kindergartens

Health care affordable+ high quality


9. HIGH QUALITY OF LIFEIII. FRANKFURT BEST SUITED:

Top museums, art

Vivid cultural scene

Price winning opera “Oper Frankfurt” (2014 & 2015)

English Theatre Frankfurt

Many local recreational areas:

_ Taunus Forest _ Rheingau Rhine Valley _ Parks _ Vineyards

Excellent work-life-balance

Short distances for work and transportation


9. HIGH QUALITY OF LIFE


10. FRANKFURT PLACE TO GOIII. FRANKFURT BEST SUITED:


10. FRANKFURT PLACE TO GO

Frankfurt recommended by:

BCG-Study 06 / 2016

_ Frankfurt best choice with regard to economical and political stability, high qualifi ed employees and taxes

StepStone Study 07 / 2016

_ 44 % of professionals and executives prefer Frankfurt as place of work

Center for Financial Studies 07 / 2016

_ Winning areas: “securities trading and settlement”, “corporate banking” and “asset management” (Bloomberg: “Frankfurt Trading to Grow in Importance Post-Brexit, Study Finds”)

24 %Ireland

29 %Spain

30 %France

44%Germany

26%Netherlands

around 600.000 british citizens want to change their jobs


FRANKFURT PLACE TO BE


FRANKFURT PLACE TO BE

International fi nancial center

Proximity to regulators

Regulation – 1-stop-shop

Taxes

Labour law

German economy

Frankfurt RheinMain area

Best business environment

High quality of life

Frankfurt place to go


LONDON, 10 AUGUST 2016 PAGE 32

Ministry of Economics, Energy, Transport and Regional Development,State of Hessen

[email protected]

Hessen Trade & Invest GmbH

[email protected]

Page 1: Frankfurter Skyline © djama — Fotolia.com / Page 4: London scenery at Westminter bridge with Big Ben and blurred red bus, UK © Patryk Kosmider — Fotolia.com / Page 6: Big Ben and Westminster Bridge in London at dusk, UK © Patryk Kosmider — Fotolia.com / Page 10: Frankfurt am Main © djama — Fotolia.com / Page 12: EZB Skyline Frankfurt © Petrus Bodenstaff — Fotolia.com / Page 14: Frankfurt Eiserner Steg © city-pix — Fotolia.com / Page 16: Westhafen Frankfurt © pure-life-pictures — Fotolia.com / Page 18: Blurred people using a skywalk / staircase © davis — Fotolia.com / Page 20: Cutting of metal. Sparks fly from laser © Wisky — Fotolia.com / Page 22: Skyline von Frankfurt am Abend © kuegi — Fotolia.com / Page 24: Holbeinsteg und Frankfurter Skyline © djama — Fotolia.com / Page 26: Museumsuferfest © Tourismus+Congress GmbH Frankfurt am Main, Photo: Holger Ullmann / Page 28: Mainufer © Tourismus+Congress GmbH Frankfurt am Main, Photo: Holger Ullmann / Page 30: Apfelweinausschank © Tourismus+Congress GmbH Frankfurt am Main, Photo: Holger Ullmann

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