UK
Given a choice between Paris and London, any reasonable person should surely want to live in Paris.
The UK has one of the worst standards of living in Europe; France has one of the best. A married banker earning 250k with two children (one of them under six) will now end up better off after taxes in Paris (150k vs 141k in London) according to PricewaterhouseCoopers. And, according to Peter Sands of Standard Chartered, London is now the “least preferred” global location of the average internationally mobile investment banker.
Notably, however, and despite all the City-bashing, French banks are still focusing on London as the recipient-city of their new headcount in the European Union.
Last week, it emerged that Exane and BNP plan to add around 200 equity research, sales and trading jobs, mostly in London, over the next three to five years. There are also rumours that Exane is planning to relocate some of its Paris teams to the City.
Why France doesn’t do banking
French banks aren’t commenting on their apparent fondness for London.
Critical mass and London’s large cluster of skilled bankers are undoubtedly a big factor. However, it could also be argued that French culture is innately unsuited to investment banking.
In her recent book, The Secret Life of France, Lucy Wadham, a writer formerly married to a French investment banker, postulates that French culture is all about the achievement of status through nobility and ideas.
On the other hand, suggests Wadham, English culture is all about the achievement of status through property and wealth.
It doesn’t take a genius to see which belief system is most conducive to housing an international financial services centre.
Wadham also offers an explanation for why there are so many French mathematicians working in the City of London. She says maths is a major focus of the French education system because it’s seen as, “…the final arbiter of intelligence…Above all, Maths is seen as the great leveller. There is no need to come from a cultivated background to have an affinity for maths.”
For the foreseeable future, uncultivated French mathematicians will need to cross the channel if they want to ply their wares to investment banks.
If they stay in France, they may soon find themselves paying higher taxes anyway. President Sarkozy’s new plan to eliminate a tax ceiling which currently ensures that rich people in France pay no more than 50% of their income in income tax, suggests the French could soon follow the British in raising rates on top earners.
As EU cities go, London still has an enormous advantage, even if it is smelly and expensive.
Nice viewpoint….
The REAL reason why London will remain a global financial center is because the British due to centuries of tradition are much more TOLERANT to other cultures (!) (and the English language)
Look at the rhetoric on the matter (and actions) in France and Germany.
London is (basically) the only place in Europe where you can (realistically) hope to become a boss (manager)!
Everywhere else you will (most probably) be an expert all your life…
Love or hate the british ,one thing you must say is that they put systems in place that creates wealth(yes you could argue that the abused their colonies for their resources) but the british way of doing things does seem to create wealth.Now if everyone is happy under this system compared to say the french who want a good standard of living no matteris an differnt story.
why (do) you (need) to (put) brackets (around) every (second) word(!!?)
French banking is still a gentleman’s club. An example would be the CFO of LVMH and a managing director at BNP Paribas enjoying fine wines and dealmaking during regular stays at a chateau. The work of their mathematicians is ultimately a filter through from this food chain. Ruthless capitalism as practised in London, Asia and the Americas is another world to them.
Could it be because the costs of redundancy in France are eye watering? UK employment law makes it much easier to hire and fire.
Paris does have a certain ‘je ne sais pas (pourquoi).’ :)
By the way, quality of life is more important than standard living. How many people would like todouble their salary on the condition that you’ll be living in a compound in Saudi?? Any takers?
UK look are your competence instead of your last name, your color or the school you went to. The UK have the reputation of having been a ”better” settler than the french. I’m not saying colonization was a good thing, but the French were worst than the English. (I’m from a former french colony). When people see a talent in UK they accept it an try to make the best of it, in France, you will need to be ideally white and from a ”grande école”.
A Tale of Two Cities; nothing new
Language will determine financial freedom.
What is your point? Mr.James