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ECONOMY

Paris wins bid to host EU banking agency post-Brexit

Paris on Monday won the right to host the European Banking Authority after it leaves London in the wake of Brexit, the bloc's presidency said.

Paris wins bid to host EU banking agency post-Brexit
Photo: AFP/DcnH/Flickr
The French capital beat Dublin in a tie-break after three rounds of voting by EU ministers failed to produce an outright winner.
 
French President Emmanuel Macron welcomed the choice of Paris as the new home of the European Banking Authority (EBA) following Britain's withdrawal from the EU in March 2019.
 
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Photo: AFP

Macron tweeted (see below): “Paris will welcome the European Banking Authority! It is recognition of the attractiveness and the European commitment to France. Happy and proud for our country.”
 
Paris is doing all it can to benefit from the uncertainty around Brexit and in September announced plans to cut taxes on high earning finance sector jobs as part of efforts to make Paris more attractive for firms shifting operations out of London.
 
Earlier this month  the president of the great Paris region of Île-de-France Valerie Pecresse announced that it has already been promised 2,500 jobs to be switched from Britain as a result of Brexit.

“#Brexit: 2,500 jobs already announced for Ile-de-France, with a target of 10,000 by 2019,” Valerie Pecresse tweeted on a visit to London to meet representatives of 70 internationally-focused companies based in London.

Pecresse's figure concerns large financial companies, so the total could be closer to 3,500 and 4,000 posts once small businesses are taken into account, Arnaud de Bresson, chief executive of financial lobby group Paris Europlace and who was part of the visit, told AFP by telephone.

READ ALSO: Brexit and Macron: Why we're leaving London for Paris

Brexit and Macron: Why the time was right to quit London for Paris

Large financial institutions, including British bank HSBC, Swiss peer UBS and US giants JPMorgan and Morgan Stanley, have confirmed plans to move some activities to Paris, as well as to Amsterdam, Dublin and Frankfurt, as a result of Britain's departure from the European Union.

The Bank of England said this month that 10,000 UK financial services jobs could move abroad on the first day of Brexit, after warnings of up to 75,000 relocations in total.

Britain is set to leave the bloc in March 2019, but remains locked in tough exit negotiations with the EU.

 

ECONOMY

France warns winter gas cuts possible

The French government warned Wednesday that companies might have to reduce energy use this winter even with the country's natural gas reserves at full capacity, as Russia continues to reduce its gas exports to Europe.

France warns winter gas cuts possible

“The main players, government agencies and businesses, must reduce their consumption” of gas as well as electricity, because “the two systems are linked,” Energy Minister Agnes Pannier-Runacher told CNews television.

Moscow has slashed its exports to Europe in response to punishing Western sanctions over the invasion of Ukraine by Russian forces, forcing countries to scramble for alternatives.

Even though France is less reliant on Russian supplies than other EU countries, generating around three-quarters of its electricity from nuclear power plants, its industrial sector still relies on gas and millions of people use it to heat their homes.

Winter shortfalls will be a risk even though France is racing to top up its gas reserves.

“Right now our strategic gas reserves are at 80 percent capacity… which means we will reach our goal of 100 percent before November 1,” Pannier-Runacher said.

But she later insisted on RMC radio that full stocks might not be enough to avoid gas cuts as the government seeks alternative sources.

“It’s not so simple… We might have a particularly cold day and because of the size of the pipelines, we can’t pump all of the gas we have,” she said.

And France is also facing a winter with fewer of its nuclear plants online because of either maintenance or safety concerns, meaning that electricity supplies could be strained.

“We are counting on solidarity, notably with Germany, to import electricity,” she said. “And we need to support Germany with the gas we import via our liquefied natural gas terminals.”

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