This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.theguardian.com/world/2016/jul/18/frankfurt-tries-to-tempt-the-bankers-fleeing-a-post-brexit-britain

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Frankfurt tries to tempt the bankers fleeing a post-Brexit Britain Frankfurt tries to tempt the bankers fleeing a post-Brexit Britain
(35 minutes later)
Dishing out servings of her award-winning gelbe wurst (yellow pork and veal sausages) to customers in Frankfurt’s covered market as she has been doing for the past 58 years, Ilse Schreiber said the British electorate’s decision to leave the EU had made her sure of one thing. “We need to stick together, more than ever – we can’t let Europe fall apart.” Dishing out servings of her award-winning gelbe Wurst (yellow pork and veal sausages) to customers in Frankfurt’s covered market as she has been doing for 58 years, Ilse Schreiber said the British electorate’s decision to leave the EU had made her sure of one thing. “We need to stick together, more than ever – we can’t let Europe fall apart.”
The 76-year-old said she was convinced that just as her adopted city had taken her and thousands of others in as refugees from what is now western Poland in 1946, it would now be able to absorb the 10,000 to 20,000 financial sector workers it is estimated could move from London in the event of a Brexit. “They can come and try out my sausages,” she said, pointing to the many Frankfurt financiers who queue at her stall every lunchtime.The 76-year-old said she was convinced that just as her adopted city had taken her and thousands of others in as refugees from what is now western Poland in 1946, it would now be able to absorb the 10,000 to 20,000 financial sector workers it is estimated could move from London in the event of a Brexit. “They can come and try out my sausages,” she said, pointing to the many Frankfurt financiers who queue at her stall every lunchtime.
Major financial institutions in London are considering relocating thousands of their employees if UK-based firms lose access to the bloc. Frankfurt – already home to the European Central Bank, the EU’s insurance regulator, as well as almost 200 foreign banks – is likely to be a major beneficiary of the post-Brexit fallout in the financial sector. Major financial institutions in London are considering relocating thousands of employees if UK-based firms lose access to the bloc. Frankfurt – already home to the European Central Bank, the EU’s insurance regulator, as well as almost 200 foreign banks – is likely to be a major beneficiary of the post-Brexit fallout in the financial sector.
Spearheading the campaign to persuade executives that Germany’s financial capital – the most important in continental Europe – should become the new London, is the city’s social democrat mayor, Peter Feldmann, who said Frankfurt was both “weeping and laughing” at the Brexit decision.Spearheading the campaign to persuade executives that Germany’s financial capital – the most important in continental Europe – should become the new London, is the city’s social democrat mayor, Peter Feldmann, who said Frankfurt was both “weeping and laughing” at the Brexit decision.
“We’re sorry things have turned out like they have,” he told the Guardian. “But now this sovereign decision, which everyone now believes is irreversible, has been made we say we’re ready and waiting to provide the bankers with a new home.”“We’re sorry things have turned out like they have,” he told the Guardian. “But now this sovereign decision, which everyone now believes is irreversible, has been made we say we’re ready and waiting to provide the bankers with a new home.”
From his office in the Römer, the medieval city hall, Feldmann highlights the benefits of Frankfurt, including zero unemployment, 1.3m square metres of empty office space, record tax revenues – much of which is being pumped into the education system – and the highest per capita cultural budget of any German city. From his office in the Römer, the medieval city hall, Feldmann highlights the benefits of Frankfurt, including negligible unemployment, 1.3m square metres of empty office space, record tax revenues – much of which is being pumped into the education system – and the highest per capita cultural budget of any German city.
He is also proud of the city’s outward-looking nature – it is home to 180 nationalities and a third of its inhabitants are foreign nationals – which has much to do with its reputation as a trade fair location which goes back as far as the 12th century, and a banking tradition which is at least 600 years old. He is also proud of the city’s outward-looking nature – it is home to 180 nationalities and a third of its inhabitants are foreign nationals – which has much to do with its reputation as a trade fair location that goes back as far as the 12th century, and a banking tradition which is at least 600 years old.
“From the cradle onwards we’re taught to be open to the world, to employ foreigners, as their families will become your customers, which is why we cannot understand how Britain has decided to isolate itself but we’re going to make the best of it.” “From the cradle onwards we’re taught to be open to the world, to employ foreigners, as their families will become your customers, which is why we cannot understand how Britain has decided to isolate itself but we’re going to make the best of it,” said Feldmann.
Frankfurt, he said, still takes pride in having given refuge to hundreds of English Protestants who fled religious persecution under Mary I in the 1550s. And while he wouldn’t compare the bankers to desperate refugees, “we’ll certainly also make them feel equally welcome here”. Frankfurt, he said, still takes pride in having given refuge to hundreds of English Protestants who fled religious persecution under Mary I in the 1550s. And while he would not compare the bankers to desperate refugees, “we’ll certainly also make them feel equally welcome here”.
How many jobs might come Frankfurt’s way is dependent on how many banks decide to move, what percentage of their personnel they relocate, and whether the European Banking Authority (EBA) and the joint headquarters of the London Stock Exchange and Deutsche Börse - if their proposed fusion even happens – end up being in Frankfurt, or other contending cities. How many jobs might come Frankfurt’s way is dependent on how many banks decide to move, what percentage of their personnel they relocate, and whether the European Banking Authority (EBA) and the joint headquarters of the London Stock Exchange and Deutsche Börse – if their proposed merger even happens – end up being in Frankfurt, or other contending cities.
The regional marketing agency, FrankfurtRheinMain GmbH, is hoping to help capture as many of them as possible.The regional marketing agency, FrankfurtRheinMain GmbH, is hoping to help capture as many of them as possible.
“We built a website welcometofrm.com in case of a Brexit and were so not expecting, or to be honest, wanting it to be needed,” its chief executive, Eric Menges, said. “But you know, we’re Germans and very organised so it went live the night the results came in.”“We built a website welcometofrm.com in case of a Brexit and were so not expecting, or to be honest, wanting it to be needed,” its chief executive, Eric Menges, said. “But you know, we’re Germans and very organised so it went live the night the results came in.”
A promotional video shows off the region’s assets, and includes couples wandering through vineyards in misty sunlight and, amid the gleaming glass and chrome towers of the banking district, a man reading a book in a hammock on the banks of the Main river.A promotional video shows off the region’s assets, and includes couples wandering through vineyards in misty sunlight and, amid the gleaming glass and chrome towers of the banking district, a man reading a book in a hammock on the banks of the Main river.
The agency has also set up a 24-hour telephone hotline manned by native English speakers and the phone has hardly stopped ringing, Menges said.The agency has also set up a 24-hour telephone hotline manned by native English speakers and the phone has hardly stopped ringing, Menges said.
The inquiries so far from businesses large and small – as well as management consultants, estate agents and legal firms – have spanned everything from rent prices and the availability of luxury flats to international schools and the tax system.The inquiries so far from businesses large and small – as well as management consultants, estate agents and legal firms – have spanned everything from rent prices and the availability of luxury flats to international schools and the tax system.
“I show them what a high standard of living they can enjoy here, that you can live, like I do,15 minutes’ drive from the city centre, close to vineyards and keep chickens in the backyard, or else in the city centre, but for a half or third of the price you might pay in London. And you can cycle everywhere. We have a world-class opera house, theatres, art galleries and restaurants, and everyone speaks English,” he said. “I show them what a high standard of living they can enjoy here, that you can live, like I do, 15 minutes’ drive from the city centre, close to vineyards and keep chickens in the backyard, or else in the city centre, but for a half or third of the price you might pay in London. And you can cycle everywhere. We have a world-class opera house, theatres, art galleries and restaurants, and everyone speaks English,” he said.
The Frankfurt native, whose accent is tinged with the “zish” of the regional Hesse dialect, treats visitors to Frankfurt’s local delicacies – albeit rather acquired tastes – such as green sauce and marinated handcheese (a fist-sized pungent sour cheese in vinegar) with onions. On the menu too is the sweet and sour apple wines the city dwellers like so much, the headquarters of the EU’s insurance regulator EIOPA has even been modelled on the crenellated glass out of which it is typically drunk. The Frankfurt native, whose accent is tinged with the “zish” of the regional Hesse dialect, treats visitors to Frankfurt’s local delicacies – albeit rather acquired tastes – such as green sauce and marinated handcheese (a fist-sized pungent sour cheese in vinegar) with onions. On the menu, too, is the sweet and sour apple wines the city dwellers like so much; the headquarters of the EU’s insurance regulator EIOPA has even been modelled on the crenellated glass out of which it is typically drunk.
But the potential influx is nevertheless a worry for many ordinary Frankfurters, concerned that the sudden rush of highly paid executives will cause a housing market, where prices have already been rising beyond many people’s means, to inflate still further. But the potential influx is nevertheless a worry for many ordinary Frankfurters, concerned that the sudden rush of highly paid executives will cause a housing market where prices have already been rising beyond many people’s means to inflate still further.
At the box office of the English Theatre, Tunc Yomolcay, 36, who is Frankfurt born and bred, is selling tickets for upcoming productions, from Monty Python’s Spamalot to The Hound of the Baskervilles. “Personally, though Brexit was a real blow, I’d welcome any Brexit exiles as apart from anything it would be good for the theatre,” he said. “But my main concern is that if thousands of bankers relocate from London it will push up the rents, and I’m already paying shedloads for my 20 square metre flat as it is.” At the box office of the English theatre, Tunc Yomolcay, 36, who is Frankfurt born and bred, is selling tickets for upcoming productions, from Monty Python’s Spamalot to The Hound of the Baskervilles. “Personally, though Brexit was a real blow, I’d welcome any Brexit exiles as, apart from anything, it would be good for the theatre,” he said. “But my main concern is that if thousands of bankers relocate from London it will push up the rents, and I’m already paying shedloads for my 20 square metre flat as it is.”
Any fears that the city’s rather cosy, almost village-like identity compared to London, might change in the wake of divisions of bankers and insurance brokers arriving from the UK, are unfounded, said Berthold Kohler, one of the publishers of the Frankfurter Allgemeine Zeitung. Any fears that the city’s rather cosy, almost village-like identity compared to London might change in the wake of divisions of bankers and insurance brokers arriving from the UK, are unfounded, said Berthold Kohler, one of the publishers of the Frankfurter Allgemeine Zeitung.
“It’s a live and let live sort of place, and that will not alter. The ordinary Frankfurters are self confident enough to tolerate the bankers and not let themselves be intimidated by them or their wealth and the banking scene certainly does not dictate the terms of life in the city. Rather people are used to living off and with the trade,” he said. “It’s a live and let live sort of place, and that will not alter. The ordinary Frankfurters are self-confident enough to tolerate the bankers and not let themselves be intimidated by them or their wealth and the banking scene certainly does not dictate the terms of life in the city. Rather, people are used to living off and with the trade,” he said.
That live and let live attitude, said Menges, is a side of Frankfurt rather unknown to outsiders. It is exemplified in the figure of “Naked George” – Frankfurt’s resident nudist who is something of a local celebrity. “He’s just accepted by everyone, he never gets arrested. I sometimes see him at the dentist.”That live and let live attitude, said Menges, is a side of Frankfurt rather unknown to outsiders. It is exemplified in the figure of “Naked George” – Frankfurt’s resident nudist who is something of a local celebrity. “He’s just accepted by everyone, he never gets arrested. I sometimes see him at the dentist.”
In Frankfurt’s railway quarter – a bustling district on the edge of the banking quarter where Moroccan grocers and Turkish hairdressers sit beside Japanese patisseries and kebab houses – bankers Jaczek, Jörg and Don were enjoying an after-work meal in Fletcher’s Better Burger.In Frankfurt’s railway quarter – a bustling district on the edge of the banking quarter where Moroccan grocers and Turkish hairdressers sit beside Japanese patisseries and kebab houses – bankers Jaczek, Jörg and Don were enjoying an after-work meal in Fletcher’s Better Burger.
The three – all of whom declined to give their full names or identify their employers – agreed that Frankfurt was not quite as classy as London or as cool as Berlin.The three – all of whom declined to give their full names or identify their employers – agreed that Frankfurt was not quite as classy as London or as cool as Berlin.
But, said Jaczek, “it’s got a lot going for it, quite a few cool pubs and bars, and I think if it embraces the opportunities from Brexit, that will probably inject even more energy into it.”But, said Jaczek, “it’s got a lot going for it, quite a few cool pubs and bars, and I think if it embraces the opportunities from Brexit, that will probably inject even more energy into it.”
Jörg, who has previously lived in Berlin and New York, said it was the obvious place for the banking industry to relocate to, “if only because it’s so international and has such fantastic transport links. You can get to Paris by train in around three and a half hours.” Jörg, who has previously lived in Berlin and New York, said it was the obvious place for the banking industry to relocate to, “if only because it’s so international and has such fantastic transport links. You can get to Paris by train in about three and a half hours.”
Volker Bouffier, the premier of the state of Hesse, has admitted that the region needs to tread carefully “lest it appear we’re vultures, picking at the dead”. But as Brexit has been decided on, “we’re not going to hang around for two years to see where the negotiations go, we want to help businesses with their reorientation plans now,” he said. Volker Bouffier, the premier of the state of Hesse, has admitted that the region needs to tread carefully “lest it appear we’re vultures, picking at the dead”. But as Brexit has been decided on, he said: “We’re not going to hang around for two years to see where the negotiations go, we want to help businesses with their reorientation plans now.”
A recent survey of 360 London bankers by the Boston Consulting Group put Frankfurt in a prime position, ahead of rivals such as Paris, Amsterdam, Dublin or Luxembourg. Its advantages were seen as its central location, sophisticated infrastructure and property prices considerably lower than those in London or Paris.A recent survey of 360 London bankers by the Boston Consulting Group put Frankfurt in a prime position, ahead of rivals such as Paris, Amsterdam, Dublin or Luxembourg. Its advantages were seen as its central location, sophisticated infrastructure and property prices considerably lower than those in London or Paris.
“It’s likely all these cities will benefit in some way from the Brexit fallout,” said Martin Hellmich, a professor of risk management, talking at the Frankfurt School of Finance and Management conference – Brexit or Brexit Lite, What Happens Next? “But proximity to other banks, especially to the ECB, as well as manageable rental costs at a time when banks are having to look closer at their bottom lines, certainly makes Frankfurt very appealing.” “It’s likely all these cities will benefit in some way from the Brexit fallout,” said Martin Hellmich, a professor of risk management, talking at the Frankfurt School of Finance and Management conference – Brexit or Brexit Lite, What Happens Next? “But proximity to other banks, especially to the ECB, as well as manageable rental costs at a time when banks are having to look closer at their bottom lines certainly makes Frankfurt very appealing.”
The perceived obstacles are the high German taxes and strict labour laws, which are off-putting for some, as well as Frankfurt’s reputation, albeit one it’s trying hard to shake, for being a little dull.The perceived obstacles are the high German taxes and strict labour laws, which are off-putting for some, as well as Frankfurt’s reputation, albeit one it’s trying hard to shake, for being a little dull.
But that has not stopped two major banks from reportedly buying up office space, citing Brexit as the main motivator, according to local estate agents.But that has not stopped two major banks from reportedly buying up office space, citing Brexit as the main motivator, according to local estate agents.
“One management consultant told me they’ve been commissioned to work on so many company plans to exit London, they can hardly keep track of them,” said Christoph Schalast, professor for mergers and acquisitions at the Frankfurt School of Finance and Management. “It seems they’re effectively working on the Plan B that the British government failed to have – that’s what most people still can’t get their heads around here.” “One management consultant told me they’ve been commissioned to work on so many company plans to exit London, they can hardly keep track of them,” said Christoph Schalast, professor for mergers and acquisitions at the Frankfurt School of Finance and Management. “It seems they’re effectively working on the plan B that the British government failed to have – that’s what most people still can’t get their heads around here.”
Yet there might yet be a note of caution in the city’s records of the Protestant exiles which show that native Frankfurters did not trust the 16th century English immigrants, suspecting them of trying to undermine the privileges of existing citizens and of unfair business practices. Yet there might yet be a note of caution in the city’s records of the Protestant exiles, which show that native Frankfurters did not trust the 16th-century English immigrants, suspecting them of trying to undermine the privileges of existing citizens and of unfair business practices.
“Clearly we need to ensure that people already here aren’t disadvantaged by any influx and then we can make this work,” said Feldmann, the mayor. “Clearly we need to ensure that people already here aren’t disadvantaged by any influx and then we can make this work,” said Feldmann.