Mark Stone, Europe Correspondent, reports on the impact of Brexit on London and Frankfurt. Following a tweet from Lloyd Blankfein, the boss of Goldman Sachs, announcing plans to spend more time in Frankfurt, there was speculation on what this meant for London. Goldman Sachs subsequently announced that they would rent the top eight floors of a skyscraper in Frankfurt as part of their contingency plans post-Brexit. Frankfurt, being the headquarters of the eurozone, is seen as a winner in the aftermath of Brexit as financial talent is drawn out of London.
The movement to Frankfurt is evident from the increased interest in international schools, like Metropolitan School, as employees prepare for possible relocation. In London, accounting firm EY notes that despite an increase in intentions to relocate staff out of the city, the actual number of jobs moving has fallen from previous estimates. This reluctance to move is due to the expenses and disruptions involved in relocating staff. Companies are also strategizing to maintain the minimum staffing in the EU needed for continued operations post-Brexit.
Frankfurt Main Finance director, Hubertus Vath, has been promoting Frankfurt as a viable location for financial institutions looking to relocate from London. While London remains a significant financial center, the impact of Brexit on the job movement will be limited. Vath emphasizes that Frankfurt is not trying to profit from London’s predicament but rather offering an alternative for companies facing relocation to the eurozone. However, uncertainties regarding the UK’s future relationship with the EU post-Brexit remain as negotiations continue. EY’s Omar Ali also points out the importance of a clear UK-EU deal to mitigate the risks for companies planning restructurings and relocations.
