27 July 2011
European financial services cluster generates social and
economic benefits for all EU countries and citizens
The clustering of European financial centres, and the networking
between them, delivers significant and tangible social and economic
benefits throughout the European Union according to a new study -
The Value of Europe’s International Financial Centres to the EU
Economy.
The report, commissioned by the City of London Corporation and
TheCityUK on behalf of the International Regulatory Strategy Group
(IRSG), focuses primarily on eight major international financial
centres: Amsterdam, Dublin, Frankfurt, London, Luxembourg, Madrid,
Milan and Paris.
Policy Chairman at the City of London Corporation, Stuart
Fraser, commented:
"This report clearly shows that having a cluster of genuinely
international financial centres within the EU provides significant
benefits not only for the countries in which they are located but
also for individuals, companies and governments across all 27
Member States.
"The eight largest financial centres in the EU account for
the bulk of its financial services provision and provide a unique
advantage in the global marketplace.
"They offer access to a depth and concentration of capital,
talent, markets and services required to compete in the global
marketplace and promote specialisation in other business sectors
and geographic regions."
Chairman of TheCityUK, Stuart Popham, added:
"In response to the global financial crisis, European
policy-makers – along with domestic governments and international
organisations – are currently restructuring the framework in which
the European financial services industry operates.
The benefits that Europe’s international financial centres bring
to Member States’ economies are clear to see - new regulations
should be accompanied by comprehensive impact assessments to ensure
that we do not damage Europe’s international competitiveness.
These benefits – accrued directly as a result of the cluster of
international financial centres - underpin the Europe 2020 strategy
and highlight the opportunity for the EU to be the pre-eminent
location for financial and professional services firms for years to
come."
Whilst the tax and employment benefits a successful financial
services industry can generate are often cited, this report,
authored by Europe Economics, shows that individuals and households
across the EU also benefit from lower costs through cross border
competition for products and services, improved financial security
for individuals and economic stability for governments.
With wage growth over the average lifetime of 2 per cent, a
well-functioning financial sector can add around 5 per cent to GDP
from savings-and-borrowing effects alone. With this figure rising
to 8 per cent if income growth is 2.5 per cent, it is clear that
financial services have a vital role to play in contributing to and
supporting a faster growing EU economy.
The breadth and depth of the EU’s financial services industry
provides access to capital for businesses in all industry sectors,
encouraging trade-led growth and investment across all EU
countries. With some €280bn raised through IPOs on European stock
exchanges between 2002 and 2010, businesses have been able to
flourish by investing in core areas such as research and
development and merger and acquisition activity.
Ends
Notes to editors
- Press enquiries:
Sanjay Odedra, Media Officer, City of London Corporation
Tel 020 7332 1835 / Mobile 07831 542856
Email
sanjay.odedra@cityoflondon.gov.uk
James Abbott, Media Officer, City of London Corporation
Tel 020 7332 1835 / Mobile 07831 543 188
Email
james.abbott@cityoflondon.gov.uk
- About the City of London
Corporation:
The City of London Corporation is a uniquely diverse organisation.
It supports and promotes the City as the world leader in
international finance and business services and provides local
services and policing for those working in, living in and visiting
the Square Mile. It also provides valued services to London and the
nation. These include the Barbican Centre and the Guildhall School
of Music & Drama; the Guildhall Library and Art Gallery and
London Metropolitan Archive; a range of education provision
(including three City Academies); five Thames bridges (including
Tower Bridge and the Millennium Bridge); the Central Criminal Court
at Old Bailey; over 10,000 acres of open spaces (including
Hampstead Heath and Epping Forest), and three wholesale food
markets. It is also London’s Port Health Authority and runs the
Animal Reception Centre at Heathrow. It works in partnership with
neighbouring boroughs on the regeneration of surrounding areas and
the City Bridge Trust, which it oversees, donates more than £15m to
charity annually.
- About TheCityUK:
TheCityUK is the independent body promoting UK-based financial and
related professional services. It was created with the support and
initial financial backing of the City of London Corporation.
TheCityUK’s strategic priorities are guided by an Advisory Council
of financial services leaders spanning all sectors of the industry
throughout the UK. The Advisory Council is chaired by Sir Win
Bischoff of Lloyds Banking Group. The Board of Directors, chaired
by Stuart Popham, former Senior Partner at Clifford Chance and
recently appointed EMEA Banking Vice Chairman at CitiGroup, is
responsible for developing strategy and overseeing delivery,
including the remits and activity of the organisation’s advisory
groups and committees. As the voice for the UK financial services
community, TheCityUK is working to build a deeper pool of support
across the UK, promoting UK financial services overseas and
contributing to the regulatory and trade policy debate. Our purpose
is partnering prosperity – supporting the competitiveness of UK
financial services and protecting their considerable economic
contribution. TheCityUK co-ordinates and facilitates the
contribution of its members to drive and deliver its priorities.
Its UK-wide membership covers all sectors in financial services and
related professional services. It is independent and politically
neutral. For further information please see
www.thecityuk.com
- About the International Regulatory Strategy
Group
The International Regulatory Strategy Group
(IRSG) is a practitioner-led body comprising leading UK-based
figures from the financial and professional services industry. It
aims to contribute to the shaping of the international regulatory
regime, at global, regional, and national level, so that it
promotes open, competitive and fair capital markets globally that
support sustainable economic growth. Its role includes identifying
strategic level issues where a cross-sectoral position can add
value to the existing industry views. It is an advisory body both
to the City of London Corporation and to TheCityUK.
- About European Economics:
European Economic Research Limited, trading as Europe Economics, is
a consultancy specialising in economic regulation, competition
policy, and the application of economics to public and business
policy issues. They provide high quality economic analysis,
addressing real issues, with relevant conclusions. They employ 25
permanent staff, and have contractual relationships with others who
provide specialist input when the need arises. All staff are very
well qualified, and deliver precise and authoritative studies
consistently focused on clients' requirements. Clients include
government departments, regulators, the European Commission and the
European Parliament, companies both large and small, industry and
professional representative bodies, law firms, public affairs
advisors and charitable bodies.