Dmitry Leus: Paris has received the opportunity to host an EBA

RU

Everyone's attention this week was focused on Brussels, where a vote was held, to determine the future location of the European Banking Supervision Board (EBA), which will need to leave London when the UK leaves the European Union. The vote was quite dramatic. Lobbying by rival cities, Paris and Dublin reached the finals, but eventually won the first.

The result was a blow to the previous favorite, Frankfurt, which became home to the European Central Bank, supported by a strong German lobby. The Austrians were also disappointed as they made the most valuable offer in terms of a financial package that included 25 years without rent for the EBA. Rumour has it that Austria was the preferred location for EBA employees, from the country's perspective.

Of course, the final round of voting ensured a healthy dose of Brussels intrigue, as we know that one country spoiled its ballot. Who could it have been and why did they do it? Could it have been Germany? Once Frankfurt was abolished, couldn't the Germans have voted for their rivals France or Dublin outsiders? We'll probably never know.

The European Securities and Markets Authority, the agency responsible for regulating financial trade, is already based in Paris, so this week's vote means that both bodies responsible for setting banking standards will now be in Paris. Some have predicted that voting would not allow such a concentration of influence in one city. Other commentators mentioned that the Paris proposal was the least generous from a financial point of view, adding to the surprise of a French victory.

President Macron immediately tweeted his joy by saying: "This is a recognition of France's attractiveness and European involvement. Happy and proud of my country". Speaking at a conference on innovation, French Finance Minister Bruno Le Maire quickly expressed his admiration for the choice of Paris, saying: "This is a strong indicator that, first of all, financial stability in Paris will be determined. Secondly, it is great news for Paris, it will be one of the major European financial centres, if not the biggest. It is also a signal to major international institutions". Bruno Le Mayor expects several major banks to come to Paris as soon as the UK leaves the European Union. This decision means that about 150 EBA staff will move to France, most likely in 2019.  

The Elysian Palace said Mr Macron wanted to "thank his European partners for their trust", adding that the EU could count on France "to ensure that the resettlement process is successful". Government spokesman Christophe Castanar, the recently elected leader of the centralist party La République en Marche, Makron, said the EBA would bring "tens of thousands" of banking jobs to Paris. The mayor of Paris, Ann Hidalgo, added: "It means Paris is attractive. The EBA will raise the profile of Paris as the highest European financial centre".

The residents of Amsterdam, where the European Medicines Agency (EMA) is moving, are equally happy.

We still have to see if the fact that Paris will accept the EBA means that the city is becoming the financial centre of Europe and Amsterdam is becoming the home of the EMA.

To date, the fact that both agencies have been moved to Western European capitals has met with some dissatisfaction in Central and Eastern Europe. As two awards were given to the club "old boys" in the west, Central and Eastern Europe again felt like the "second tier" of the EU.

Source Interfax