The jobs boom that had been promised will finally be delivered by Brexit – not only in the United Kingdom.
Around 80,000 jobs will be introduced in Frankfurt because of the expected relocation of financial and banking services from London after Britain leaves the European Union, a new report suggests.
Frankfurt Main Finance’s report assessed Brexit’s effects on nin-financial job growth, studying the ripple effect on various industries including auto trade, real estate, health care and technical services.
The report determined that for the next four years, the expected influx of about 10,000 financial services personnel will result in the creation of up to 87,667 new jobs across the whole region and €191m (£176m) more in local tax revenues per year.It is estimated even by the report’s most conservative scenario that Brexit can result to at least 36,000 new jobs outside of financial services and an additional £136m (£125m) in revenues in annual tax.
It is estimated even by the report’s most conservative scenario that Brexit can result to at least 36,000 new jobs outside of financial services and an additional £136m (£125m) in revenues in annual tax.”A real success story for all parties involved” is how the managing director of Frankfurt Main Finance, Hubertus Vath, put it.
“A real success story for all parties involved,” is how the managing director of Frankfurt Main Finance, Hubertus Vath, put it.
However, the news will be an embarrassment for the campaigners of Brexit who had foretold a jobs bonanza of as many as 300,000 new positions if the country voted to leave the European Union.
In last year’s referendum run-up, Boris Johnson quoted a research from the Voe Lave campaign stating that the United Kingdom has missed out on 284,000 jobs because of the failure of the European Union to strike trade agreements with countries such as India, Japan, and the United States.
But in Brexit’s aftermath, and amid scepticism about the terms of a relationship with the bloc in the future, plans to relocate were announced by some banks.
Financial Institutions are eager to maintain the EU’s “passporting” rights, which currently permit a London-based bank to sell services across the European Union. British Exit from the EU single market unquestionably implies that banks based in the United Kingdom will lose those rights.
Already a principal financial hub that is home to the European Central Bank, Frankfurt is developing as the primary destination of the London exodus.
Since last year’s referendum, the city has already secured commitments from various banks, including Standard Chartered.
Citigroup has also informed its bankers about plans to strengthen its office in Frankfurt, generating 150 jobs, while according to the Press Association, Morgan Stanley could move a much as 200,000 people.
JP Morgan and Goldman Sachs are to reinforce operations in Frankfurt and in different cities in the European Union.
Plans to relocate were also announced by Japanese banks, including Sumitomo Mitsui Financial Group (SMFG).
The country’s largest lender, Germany’s own Deutsche Bank, has also drafted plans to transfer parts of its London operation to Frankfurt, its home base.