Reports from a Reuters survey have found that almost 119 firms will be looking to relocate from London if there is a hard Brexit deal. It has also revealed that the most popular destination for companies would be Paris, with Frankfurt coming in at a close second. Many sectors such as Banking have proceeded with caution as a hard Brexit may result in many relocating their offices to stay within the EU single market.
The survey did, however, reaffirm that London would remain as Europe’s largest financial centre and does not expect that to change in the short term at least. Tensions between the tertiary sector and Theresa May’s cabinet have grown as the continued speculation surrounding the UK and Brexit remain at an all-time high. Reports from Paris Europlace believe that 3,500 jobs have already left London and will be relocated to Paris. Fears have continued to grow among employees within the private sector as they fear they will be next. The attractive nature of the French economy and business district of Paris have been seen as two defining factors in the decision to choose Paris over other European alternatives.
This news further mounts pressure on Theresa May and her cabinet as frustrations among the party grow. Disagreements reached boiling point this week as two senior ministers opted to leave the party, believing adequate provisions for Brexit were not being met. Many have been critical of the potential for the UK to be granted an extension on the current May 29th, 2019 deadline. Economists believe the UK is leaving businesses around the world to suffer while dealing with this continued period of uncertainty.
Paris, however, is looking to capitalise on the current situation in the UK and aim to benefit from the potential injection to their jobs market. Chairman of Paris Europlace Gerard Mestrallet stated in an interview this week that he believed an additional 30,000 indirect roles could be added to the figure of 10,000. Mestrallet highlights the importance of clarity in any business environment and deems the stalling of May’s cabinet as damaging to global commerce. JP Morgan Chase & Co recently stated how it was looking to relocate a significant number of its employees if no agreement between the EU and UK were met.
To many, this news comes as no surprise as the number of foreign direct investment projects established in the UK declined. Businesses no longer see the UK as a stable and prosperous environment to do business in. The uncertainty of the current Brexit negotiations has left businesses with no choice but to look elsewhere for a more stable economy. It seems the only winners in this battle is President Emmanuel Macron and the French economy. As more large multinational companies look to follow JPMorgan and relocate to Paris, the strength of the French economy continues to grow. Paris offers the ideal location for business in Europe today. Located at the heart of the EU with a highly skilled and educated workforce, Paris can be seen as the perfect alternative to London. So long as the uncertainty of Brexit shrouds the UK, more and more businesses will continue to grow in Paris.
That should be a good news to people of Paris