On March 29, 2019, the United Kingdom will have officially left the European Union. The regulatory framework must adjust by then, and a bilateral agreement must be set as qualified personnel will not be able to move freely within the EU boundaries after the date.
Brexit is having an effect across Europe, however, our office in Frankfurt is rather affected positively by it with recent announcements in the banking and financial institutions sector to move parts of the business into Frankfurt. A recent study by S&P Global Market Intelligence and Bloomberg sees Germany, Ireland and Luxembourg as the main beneficiaries of Brexit.
The Association of Foreign Banks in Germany estimates that between 3,000 and 5,000 new jobs will be created in Frankfurt over the next two years because of Brexit.
14 large banks and financial companies including Goldman Sachs, JP Morgan, Nomura, Citigroup, Standard Chartered, Silicon Valley Bank and some rating agencies are expanding their presence in Germany already.
Insurers, Reinsurers and Brokers are extending their offices too, creating a second EMEA hub within Berlin, Cologne, Frankfurt or Munich.
As a company, we started to see the changes in February 2018 after negotiations about Brexit came to a hold and most of our clients started to build up back-office teams in either Cologne, Frankfurt or Munich. As our office is in the heart of Frankfurt, we can see a change in the city’s scenery as there is a huge building boom within the centre but also in areas which are developing like the Ostend, where the European Central Bank is based in.
In a recent newspaper article of Frankfurter Allgemeine Zeitung, it was quoted that Frankfurt is expecting 20 new skyscrapers, surveying the ever-changing skyline of city locals dub “Mainhattan”.
German cities seem to be appealing not only due to their location, but also due to a good infrastructure and lower prices compared to London. Brexit therefore opens the door to strengthen Germany as the central hub in the financial market. We already see how much the companies are hiring to stay competitive. This happens on all available levels – if you ever wanted to make the move from the UK to Germany, there could not have been a better time to do so.