Brexit to create 3,500 finance jobs in Paris as Macron takes steps to woo bankers

Gerard Mestrallet, president of the lobby group Paris Europlace, said the figure “is much higher than the direct job transfers to other European financial capitals” as he addressed the opening of the group’s annual conference.

The comments come as reports in France suggest politicians there are to pare back financial regulations to EU minimums and introduce new tax incentives to make Paris a more attractive finance hub.

French Prime Minister Edouard Philippe told a reception for 200 finance executives, that most of the changes would be made by the end of the year, as countries across the EU battle to attract bankers from London amid uncertainty over the impact of Brexit on the region’s biggest financial centre.

For asset managers coming to France, they will be able to have capital income known as carried interest taxed at 30 percent rather than higher income tax rates.

The country will also make it possible to amortise goodwill, as in Germany, as part of a longer term European project to harmonise regulations for calculating corporate tax.

“A financial centre is built with patience, by being consistent. I want this consistency to be the trademark of our economic strategy and our attractiveness policy,” Philippe said in a speech.

The moves add to steps already taken by President Emmanuel Macron, a former Rothschild investment banker, aimed at boosting Paris as a financial centre, such as plans to gradually cut corporate tax to 25 percent and scrapping a wealth tax on financial assets.

Meanwhile, US asset management giant Blackrock and the bank Citigroup are among the companies planning to move some activities to Paris.

On top of an estimated 3,500 jobs seen as likely so far, the transfers could generate an additional 20,000 indirect jobs in the French capital, said Mr Mestrallet of Paris Europlace.

He added: “We’ve made more progress in the past two years in Paris than over the previous 13 years,” he said, citing in particular the end of a wealth tax on financial assets and a new flat tax on capital income, including dividends and interest payouts.