UK
Doing it in La Défense
5 October 2007
Paris wants to become the next City of London. What are its chances?
The Financial Times reports that French economy minister Christine Lagarde (she who previously called for ‘trendy trading floors’) is launching a new assault on the City’s financial primacy.
Lagarde’s latest efforts look a little more punchy and include lower disclosure requirements for companies listing on the Paris-based NYSE-Euronext exchange, less red tape, and recent tax cuts to benefit high earners.
The move follows the release of a report yesterday which put London in pole position among global financial centres and Paris in 11th place.
The FT quotes Lagarde as saying: “One shouldn’t rejoice in the misfortune of others. All the same, the weeks since mid-August show us that the strength of a financial market, and its reputation, do not count for much.”
Is Madame a little too keen to dance on London's grave? And is Paris in any kind of position to capitalise on the City's cadaverous hue? Let us know what you think.
Even if the french have the ambition to rival the City or NY they definetely do not have the stomach so far for it.
For starters their labour legislation is appalling making it too costly to have people over there compared to London. In addition there is no sign that the government will be able to pass reforms easily. Secondly, the language of business is English and will continue be English. I doubt that the french will be willing to meet "language requirements" either in terms of their local workforce or people moving from London, NY, Singapore, Hong-Kong or wherever (notice all aforementioned cities were at some point in History under British rule [A coincidence maybe?]).
As for listing requirements so far London continues to enjoy the top spot for new companies coming to be listed on the main market or admitted on AIM. Will the french government be able to succeed overnight what the City achieved since the deregulation?
And finally, will the french be able to be open-minded enough to let go of national champions in all industries that really matter and improve efficiency(including banking)?
Hope that is a little food for thought.
Jonathan, M&A 09 Oct 2007
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