Despite lagging behind Frankfurt, Paris is hoping to attract upwards of 20,000 banking jobs.
It was not that long ago that Paris was in the running to be the new EU banking capital along with the likes of Frankfurt, Dublin, and Amsterdam. However, after a busy July that saw myriad banks move forward with relocation plans ahead of Brexit, France finds itself on the outside looking in.
Indeed, the country has failed to move the needle and entice any major lenders to its borders even at a time when banks are setting up new units within the EU en masse. Even Amsterdam has emerged as a late entrant to the race, recently welcoming Japanese firms MUFG and RBS.
Labor laws discouraging banks?
France has seen marquee banks shift their focus elsewhere due to a range of factors, perhaps none more than rigid labor laws in the country. The country currently levies harsh labor restrictions in terms of terminations, with a corporate tax rate of 33 percent. However, President Emmanuel Macron has stated that he would like to gradually lower the tax rate down to 25 percent, according to a Bloomberg report.
Perhaps recognizing its position relative to other European cities, French Finance Minister Bruno Le Maire addressed the situation, stating that Paris still sees itself at the top of the post-Brexit banking hierarchy. Despite behind noticeably behind, he echoed this sentiment:
“We will take the difficult decisions, we will lower French taxes, we will make our country more attractive. We will win the race,” he explained in a recent television interview.
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