WELCOME TO THE FINANCIAL CENTRE FRANKFURT...Germany’s leading FinTech Cluster Frankfurt RheinMain...
Transcript of 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
MINISTRY OF ECONOMICS, ENERGY, TRANSPORT AND REGIONAL DEVELOPMENT, STATE OF HESSEN PAGE 7
XXX
XXX
I. UK EU-EXIT:
3. EXIT RISKS AND PROBLEMATIC ASPECTS
MINISTRY OF ECONOMICS, ENERGY, TRANSPORT AND REGIONAL DEVELOPMENT, STATE OF HESSEN PAGE 9
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:
MINISTRY OF ECONOMICS, ENERGY, TRANSPORT AND REGIONAL DEVELOPMENT, STATE OF HESSEN PAGE 11
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:
MINISTRY OF ECONOMICS, ENERGY, TRANSPORT AND REGIONAL DEVELOPMENT, STATE OF HESSEN PAGE 13
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:
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)
MINISTRY OF ECONOMICS, ENERGY, TRANSPORT AND REGIONAL DEVELOPMENT, STATE OF HESSEN PAGE 15
2. PROXIMITY TO REGULATORSII. FRANKFURT BEST SUITED:
II. FRANKFURT BEST SUITED:
2. PROXIMITY TO REGULATORS
MINISTRY OF ECONOMICS, ENERGY, TRANSPORT AND REGIONAL DEVELOPMENT, STATE OF HESSEN PAGE 17
Your regulators are also already present:
ECB
ESRB
EIOPA FMSA GLEIFGerman Federal Bank
BaFin
3. EFFICIENT REGULATION II. FRANKFURT BEST SUITED:
YOU ARE WELCOME!
II. FRANKFURT BEST SUITED:
3. EFFICIENT REGULATION
BaFin offers single point of entry _ Predictable _ Reliable _ Professional
English-speaking contacts _ BaFin _ Tax authorities
MINISTRY OF ECONOMICS, ENERGY, TRANSPORT AND REGIONAL DEVELOPMENT, STATE OF HESSEN PAGE 19
4. TAXESII. FRANKFURT BEST SUITED:
MINISTRY OF ECONOMICS, ENERGY, TRANSPORT AND REGIONAL DEVELOPMENT, STATE OF HESSEN PAGE 21
** 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
II. FRANKFURT BEST SUITED:
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:
II. FRANKFURT BEST SUITED:
5. LABOUR LAW
MINISTRY OF ECONOMICS, ENERGY, TRANSPORT AND REGIONAL DEVELOPMENT, STATE OF HESSEN PAGE 23
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:
II. 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)
MINISTRY OF ECONOMICS, ENERGY, TRANSPORT AND REGIONAL DEVELOPMENT, STATE OF HESSEN PAGE 25
7. FRANKFURT RHEINMAIN AREA
II. FRANKFURT BEST SUITED:
II. FRANKFURT BEST SUITED:
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)
MINISTRY OF ECONOMICS, ENERGY, TRANSPORT AND REGIONAL DEVELOPMENT, STATE OF HESSEN PAGE 27
8. BEST BUSINESS ENVIRONMENTII. FRANKFURT BEST SUITED:
II. 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
MINISTRY OF ECONOMICS, ENERGY, TRANSPORT AND REGIONAL DEVELOPMENT, STATE OF HESSEN PAGE 29
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
II. FRANKFURT BEST SUITED:
9. HIGH QUALITY OF LIFE
MINISTRY OF ECONOMICS, ENERGY, TRANSPORT AND REGIONAL DEVELOPMENT, STATE OF HESSEN PAGE 31
10. FRANKFURT PLACE TO GOII. FRANKFURT BEST SUITED:
II. 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)
MINISTRY OF ECONOMICS, ENERGY, TRANSPORT AND REGIONAL DEVELOPMENT, STATE OF HESSEN PAGE 33
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
MINISTRY OF ECONOMICS, ENERGY, TRANSPORT AND REGIONAL DEVELOPMENT, STATE OF HESSEN PAGE 35
WELCOME TO FRANKFURT PAGE 36
Ministry of Economics, Energy, Transport and Regional Development,State of Hessen
Hessen Trade & Invest GmbH
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
passed on to third parties for election campaigning purposes. Even when elections are not due, the publication must not be used in any way that could give the impression that it is a party-political instrument of the state government supporting a particular political group. The aforementioned restrictions apply irrespective of when and how the recipient obtains this publication, and how many copies the recipient received. However, political parties are permitted to use this publication as a way of providing information to their own members.
PRINTING Haus der Medien GmbH I March 2017