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EU Economics

France’s Brexit bid to move banks from London to Paris BACKFIRES over language barrier

FRENCH finance minister Michel Sapin failed in his bid to attract Wall Street banks to relocate to Paris from London, it has been claimed.

Mr Sapin used a translator during lunch and it was deemed as 'negative' by bankersGETTY

Mr Sapin used a translator during lunch and it was deemed as ‘negative’ by bankers


Mr Sapin has been trying to bolster France’s prominence in the world’s financial markets ahead of Britain’s exit from the EU.

However, during a trip to the US to discuss the potential of relocation last October he was forced to use a translator which did not play out well for his intentions.

According to reports, the US bankers are said to have been left concerned about Mr Sapin’s lack of understanding of the English language.

It is in the interest of EU 27 and the UK to have an open discussion at this point

European Parliament’s committee on economic and monetary affairs

He is said to have attended a lunch with bankers from Goldman Sachs and Bank of America as well as Swiss giant UBS.But the lost in translation talks did not turn to a profitable new alliance, according to sources.A number of banks are looking at relocation as the UK continues to drive ahead with its plans for Brexit.It comes exactly a year before the EU enforces a raft of new financial guidelines on banks operating within its juristiction.

Mr Sapin has been having meetings with Merkel and HollandeGETTY

Mr Sapin has been having meetings with Merkel and Hollande


All financial organisations will have to be compliant in the Markets in Financial Instruments Directive (MiFID II) by January 2018.And ironically the MiFID II could actually help to retain finance jobs in London as non-EU financial service companies who sign up will be allowed access to the Europe wide financial services market.Banking sources told the Financial Times this week that US bankers though the fact that Mr Sapin’s lack of English was a “negative”.And this comes as the European Parliament’s committee on economic and monetary affairs warned of penalising Britain with a bad Brexit deal.

A leaked report revealed how Britain could be in line for a beneficial deal as Brussels chiefs fear for their own future.
And law makers are hatching a plan to ensure that London banks and the financial services sector are allowed to continue to trade as before, fearing any attempt to thwart transactions would have a negative impact on the remaining 27 states.The European Parliament’s committee on economic and monetary affairs says their own negotiators should tread carefully as they bash out deals.

The report says: “It is in the interest of EU 27 and the UK to have an open discussion at this point.”

Mr Sapin held talks with Bank of America GETTY

Mr Sapin held talks with Bank of America


In a sign that negotiations could well turn positive for Britain and the EU, the report instructs negotiators to look at trying to get a “workable” deal in order to offset uncertainty.The report adds: “If financial services companies choose to leave the UK as a result of Brexit, the consequences should be carefully evaluated.

“A badly designed final deal would damage both the UK and the other 27 EU member states.”

Anthony Belchambers, chairman of the Honorary Advisory Council of the Financial Services Negotiation Forum said chickens are coming home to roost.He said: “It’s not altogether surprising…the UK and EU are realising you can’t draw a sharp line between the two, and that’s a welcome degree of pragmatism.

“They recognise a drawbridge between the EU and the UK would hurt both sides.”

http://www.express.co.uk/news/world/762776/Brexit-Finance-London-Paris-Wall-Street-backfires

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