welcome to the financial centre frankfurt...germany’s leading fintech cluster frankfurt rheinmain...

WELCOME TO THE FINANCIAL CENTRE FRANKFURT

FRANKFURT

BREXIT – THE NEW CHALLENGE

MINISTRY OF ECONOMICS, ENERGY,

TRANSPORT AND REGIONAL DEVELOPMENT,

STATE OF HESSEN

I. UK EU-EXIT:

1. SOUND ASSUMPTIONS

I. UK EU-EXIT:

1. SOUND ASSUMPTIONS

WHAT WILL BE THE MOST PROBABLE FUTURE STATUS FOR THE UK REGARDING THE EU?

less probableless probable

less probable

hard Brexit

EUROPEAN ECONOMIC AREA

(EEA-MODEL)

Continued Single Market Access :

PRIVILEGED THIRD COUNTRY ACCESS

Customs Union:

WTO / GATS

FRAMEWORK:

EUROPEAN FREE TRADE ASSOCIATION

(EFTA)

FRAMEWORK:

MINISTRY OF ECONOMICS, ENERGY, TRANSPORT AND REGIONAL DEVELOPMENT, STATE OF HESSEN PAGE 5

most probable

as worst case

XXX

XXX

I. UK EU-EXIT:

2. HARD BREXIT

I. UK EU-EXIT:

2. HARD BREXIT

Fallback to WTO-rules

No more access to Europe’s single market for goods and services

No more free movement

Tariffs and other trade restrictions

High pressure to quickly negotiate new trade agreements or individual industry-by-industry deals with the EU

Long term of economic and political uncertainty

WTO


XXX

XXX

I. UK EU-EXIT:

3. EXIT RISKS AND PROBLEMATIC ASPECTS


I. UK EU-EXIT:

3. EXIT RISKS AND PROBLEMATIC ASPECTS

CHANGES:

EU Passporting Rights

Euro Clearing

Extra Capital Requirements

Additional and costly regulatory environment UK vs. EU

AFFECTED BUSINESSES:

Investment Banking

Listing

Trading

Lending

Deposit taking

Payments

Regulatory and Risk Management

Legal

WELCOME TO FRANKFURT PAGE 10

4. GENERAL ECONOMIC RISKSI. UK EU-EXIT:


I. UK EU-EXIT:

4. GENERAL ECONOMIC RISKS

Currency volatility of the Pound Sterling increases

High public debt with external creditors of UK government increases risk of rising taxes in UK, especially if devaluation of Pound Sterling continues

Brexit may decrease industrial and commercial basis of UK as companies consider reallocation to EU to benefit from the single European market

5. STRATEGIC REQUIREMENTSI. UK EU-EXIT:


I. UK EU-EXIT:

5. STRATEGIC REQUIREMENTS

Non-EU financial institutions need a new partner – Frankfurt is prepared to become the EU's gateway and leading international financial centre

10 POINTS IN FAVOUR OF FRANKFURT

II. FRANKFURT BEST SUITED:


1. INTERNATIONAL FINANCIAL CENTRE

Every major bank or financial services institution is already present

_ More than 155 foreign banks _ All major German banks

Financial capital market services with Frankfurts securities and derivatives exchanges

Broad range of related expert services (legal, consulting, analyst)


2. PROXIMITY TO REGULATORSII. FRANKFURT BEST SUITED:


2. PROXIMITY TO REGULATORS


Your regulators are also already present:

ECB

ESRB

EIOPA FMSA GLEIFGerman Federal Bank

BaFin

3. EFFICIENT REGULATION II. FRANKFURT BEST SUITED:

YOU ARE WELCOME!


3. EFFICIENT REGULATION

BaFin offers single point of entry _ Predictable _ Reliable _ Professional

English-speaking contacts _ BaFin _ Tax authorities


4. TAXESII. FRANKFURT BEST SUITED:


** The BAK Taxation Index shows the effective tax burden as a percentage of employment costs for a single employee without children and with a disposable income of EUR 100,000.

* BDI – Steuerbelastung Unternehmen / Fakten für die politische Diskussion 2015 / 16


4. TAXES

Overall tax levels are substantially lower than commonly presumed:

Effective tax rates for corporations in 2014 *:

Effective tax burden for highly qualifi ed individuals (BAK Taxation Index**):

BUSINESS TAX

10 – 16 %

FRANCE

38.2 %

FRANCE

47.0 %

GERMANY

30.4 %

GERMANY

41.0 %

LUXEMBOURG

29.6 %

LUXEMBOURG

40.2 %

UNITED KINGDOM

27.9 %

UNITED KINGDOM

48.0 %

TOTAL

25 – 31 %

CORPORATE TAX

15 %

5. LABOUR LAWII. FRANKFURT BEST SUITED:


5. LABOUR LAW


Flexible, fair & effectiveEffective dispute resolution

_ 66 % of disputes are resolved within three months

_ Labour court cases in Germany among the most

effi cient in Europe

No statutory severance payments, sole exceptions:

_ Compulsory and ineffective redundancies

Co-determination

_ Highly restricted and regulated procedures for collective actions,

prohibiton of unauthorized strikes

_ Workers council not compulsory, in most cases close and constructive

cooperation with management

Fixed-term employment contracts possible

_ Maximum of 2 years regarding unjustifi ed fi xed-term contracts, justifi ed fi xed terms permitted after that period

_ Fixed term contracts end without severance payments

6. GERMAN ECONOMYII. FRANKFURT BEST SUITED:


6. GERMAN ECONOMY

Stable German economy offers growing business opportunities

Banks will benefit from reliable clients

Political stability

Strong and broad industry base

Top rating from Single Resolution Mechanism

Highly ranked in ease-of-doing-business-index (rank 15)

_ Rankings of other prominent European countries:

_ Ireland (17) _ France (27) _ Netherlands (28)


7. FRANKFURT RHEINMAIN AREA



7. FRANKFURT RHEINMAIN AREA

Highly international workforce + communities: english broadly spoken

5.6 million inhabitants

High GDP: 216 Billion € + persistant growthNo. 2 in EU regarding the regional GDP per capita

Outstanding infrastructure (One of Europe’s largest airports)

Internet-Hub No. 1 in EU (plus IT-Cluster)

Germany’s leading FinTech Cluster

Frankfurt RheinMain & Neckar excellence:Europe’s Silicon Valley

Top universitiesStartups (360T, “Rhein-Main Startups”)

World market leaders (SAP, Software AG)


8. BEST BUSINESS ENVIRONMENTII. FRANKFURT BEST SUITED:


8. BEST BUSINESS ENVIRONMENT

Low expenses for companies and employees

Adequate wages Excellent and affordable public schools and

kindergartens

More than 10 international schools with internationally

recognized degrees and many multilangual schools within a radius of 30 minutes

around Frankfurt

Health care affordable+ high quality


9. HIGH QUALITY OF LIFEII. FRANKFURT BEST SUITED:

Pristine recreational areas:

_ Taunus Forest _ Rheingau Rhine Valley Vineyards _ Accessible nature reserves

and parks

Excellent work-life-balance

World heritage sites

Short distances and commuting times

Broad and highly efficient public transport network

Fascinating museums and art galleries

Vivid cultural scene

Price-winning opera “Oper Frankfurt” (2014 & 2015)

Largest English theatre on the continent

Vibrant nightlife

Multicultural and award-winning restaurant scene


9. HIGH QUALITY OF LIFE


10. FRANKFURT PLACE TO GOII. FRANKFURT BEST SUITED:


10. FRANKFURT PLACE TO GO

Frankfurt best choice with regard to economic and political stability, high qualifi ed employees and taxes (BCG-Study 06 / 2016)

Frankfurt ranks fi rst in “German Cities of the Future”(fDi, German Cities of the Future, 2016)

The “Economist” ranked Frankfurt as the sixth most liveable city in Europe(Economist, Global Liveability Ranking 2016)

Frankfurt is in 7th place of the most liveable citiesworldwide (Mercer, Quality of Living Survey, 2016)

Germany is the top destination in case of reallocations regarding Brexit(EY, European Attractiveness Survey / Plan B... for Brexit, 2017)

24 %Ireland

29 %Spain

30 %France

44 %Germany

26 %Netherlands

44 % of professionals and executives prefer Frankfurt as place of work (StepStone Study 07 / 2016)


FRANKFURT PLACE TO BE

FRANKFURT PLACE TO BE

International financial centre

Proximity to regulators

Efficient regulation

Moderate taxes

Flexible labour law

Stable German economy

Attractive Frankfurt RheinMain area

Best business environment

High quality of life

Frankfurt the place to go


WELCOME TO FRANKFURT PAGE 36

Ministry of Economics, Energy, Transport and Regional Development,State of Hessen

[email protected]

Hessen Trade & Invest GmbH

[email protected]

Page 1: Frankfurt am Main late summer evening © davis — Fotolia.com / Page 4: London scenery at Westminster bridge with Big Ben and blurred red bus, UK © Patryk Kosmider — Fotolia.com / Page 6: Big Ben and Westminster Bridge in London at dusk, UK © Patryk Kosmider — Fotolia.com / Page 8: View of london skyline © Frédéric Prochasson — Fotolia.com / Page 10: Business office building in London, England, UK © alice_photo — Fotolia.com / Page 12: Tower

Bridge in London, UK © f11photo — Fotolia.com / Page 14: Frankfurt am Main © djama — Fotolia.com / Page 16: EZB Skyline Frankfurt © Petrus Bodenstaff — Fotolia.com / Page 18: Frankfurt Eiserner Steg © city-pix — Fotolia.com / Page 20: Westhafen Frankfurt © pure-life-pictures — Fotolia.com / Page 22: Blurred people using a skywalk / staircase © davis — Fotolia.com / Page 24: Cutting of metal. Sparks fly from laser © Wisky — Fotolia.com / Page 26: Skyline

von Frankfurt am Abend © kuegi — Fotolia.com / Page 28: Holbeinsteg und Frankfurter Skyline © djama — Fotolia.com / Page 30: Opernplatzfest © Tourismus+Congress GmbH Frankfurt am Main, Photo: Holger Ullmann / Page 32: Mainufer © Tourismus+Congress GmbH Frankfurt am Main, Photo: Holger Ullmann / Page 34: Frankfurt am Abend von oben © kuegi — Fotolia.com

COPYRIGHTS

CONTACTS

LEGAL NOTICE

PUBLISHED BY

Ministry of Economics, Energy, Transport and Regional Development, State of Hessen

Referat Presse, Öffentlichkeitsarbeit, Kaiser-Friedrich-Ring 75, 65185 WiesbadenTel.: +49 (0) 611 - 815 2020

PERSON RESPONSIBLE FOR CONTENT PURSUANT TO SECTION 55 OF THE GERMAN BROADCAST SERVICES STATE TREATY (RSTV)

Marco Kreuter

This publication forms part of the Hessen state govern-ment’s public relations activities. Political parties, election campaign workers are not permitted to use it for election campaigning. This applies to elections at national, regional and local level. In particular, the publication must not be distributed at parties’ information stands or campaign events, nor may party-political information and campaign materials be inserted into, printed on, or attached to the publication. Furthermore, the publication must not be

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PRINTING Haus der Medien GmbH I March 2017

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