After a study said tens of thousands of jobs would be created, bolstering Germany’s banking capital, a city official has predicted that Frankfurt could become a miniature version of London after Brexit.
As London, its dominant British rival, prepares for life outside the EU, the first comprehensive tally on possible job creation in Frankfurt was revealed in the research, commissioned by the city’s chief promoter.
An additional more than 41,000 further jobs, from estate agents to taxi drivers and building workers, would be created by the arrival of 10,000 bankers and finance professionals in Frankfurt within four years, the analysts have predicted in ye report.
“It’s not the City of London but perhaps it can become a little London,” said Oliver Schwebel, chief executive of Frankfurt Economic Development, the state agency that promotes the city known for skyscrapers that house Deutsche Bank and others.
Other cities to keep a foothold in the bloc, allowing them to sell across the continent without additional costs or trade hurdles after Brexit are being examined by banks and investors in London prompted by Britain’s departure from the EU.
The Germany city’s international schools have seen a deluge of calls as bankers anticipate a move even as Frankfurt and Dublin have emerged as the most popular centres.
Frankfurt will be their EU trading base after Brexit, say Morgan Stanley, Citigroup and JP Morgan.
But for the German city, night life is subdued and cafes remain largely empty during the working week and this has made some skeptical of the German city, whose culinary attractions include local ciders and sausages. And the best thing about the city is its airport, which makes it easy to leave is a common local joke.
Frankfurt is attempting to discard its small-town image and the study, commissioned by city promoter Frankfurt Main Finance, comes amidst such an environment. The economic benefits in welcoming London bankers is also being attempted to be persuaded through that effort by reaching out to the skeptical locals.
In a city some have dubbed “Bankfurt”, many residents are worried about being squeezed out of an already expensive property market.
Schwebel was forced to defend the city’s record on providing affordable accommodation to locals it a press conference to outline the findings.
While a property boom across Germany has seen house prices and rents in cities such as Frankfurt rise sharply, the city’s population has jumped by more than 10 percent since 2010.
The supply of property is tight partly because the city wants to keep its large green belt of forests and parks although it remains small by international standards, with roughly 730,000 inhabitants.
Whether attracting such high earners from London was desirable in what turned into an, at times, noisy debate was among the question that were faced by Schwebel in a series of critical questions from German journalists.
Frankfurt was more likely, in any event, to attract risk and regulatory experts rather than investment bankers, Lutz Johanning, the author of the study, said. The city is already home to the European Central Bank, which monitors lenders.
Frankfurt won’t have the glitter jobs,” Johanning said.
(Adapted from CNBC)