BREXIT WATCH: Eight Cities Bid For European Banking Authority

--Factbox on pros/cons of 8 cities vying for EBA 

By Tara Oakes

     BRUSSELS (MNI) - Eight cities across the EU have launched bids to host the

European Banking Authority (EBA) when the agency leaves London after Brexit.

With around 200 staff, the prize is technically smaller than the European

Medicines Agency (EMA), but it is a key pillar of the bloc's financial

regulation setup.

     The European Commission is in the process of assessing the bids in terms of

six criteria, including accessibility; provision for children and spouses; and

assurance that the EBA could be up and running on the day Brexit hits --

currently scheduled for March 31, 2019.

     Geographical spread of agencies across member states is also nominally a

consideration for the rehousing of the EBA -- but the outlined bids below show a

varied approach to how that should be addressed.

     The ultimate winner will be chosen by the General Affairs Council (Art 50)

in November through a voting process with up to three rounds.

     BRUSSELS

     Key pitch: The heart of Europe with a strong financial sector.

     Building: Several available. Recommends the Regent Park, close to EU

stakeholders including the Directorate-General for Financial Stability,

Financial Services and Capital Markets Union; the Directorate-General for

Economic and Financial Affairs; and the Single Resolution Board. 'The presence

of the European Banking Federation is also a plus.'

     Rent: The Regent Park is 'priced at a competitive price level'.

     Accessibility: High-speed rail, slower trains to Luxembourg. Two Brussels

airports (and Antwerp), Eurostar connection to London.

     Families: 'More than a third of 'European Schools' are located in Belgium

and a fifth European School for 2,500 pupils will open in the Brussels Greater

Area in the near future'. Expat Welcome Desk provides assistance for new

arrivals. Many international organisations present in Brussels for spouses to

access labour market.

     Business continuity: Building scheduled to be finished in time for Brexit.

'A point of contact for the EBA has been established at the Embassy of Belgium

in London in order to streamline interaction with the EBA.'

     Geographical spread: Poor, given how many other agencies and institutions

already exist in Brussels. Argues that EBA is a relocation, not a setting up of

a new agency.

     Also bidding for the EMA, with only one winning bid allowed.

     DUBLIN

     Key pitch: Minimal disruption - same timezone and language as London. Large

financial centre.

     Building: 15 office sites shortlisted.

     Rent: E13.5mln towards rental costs, estimated to cover 50% of rental costs

over 10 years.

     Accessibility: Dublin airport has links across Europe. 'Only capital city

in Europe with US pre-clearance facilities' at Dublin Airport. Direct ferry to

Liverpool for Beatles fans with time on their hands.

     Families: Two schools currently offer European baccalaureate, more will be

accredited to offer it if the EBA is awarded. Touts 'robust and sustainable'

growth and job creation for spouses. Large employers such as Apple, Microsoft,

Google and others have chosen Ireland as their EU/EMEA home.

     Business continuity: 'Dublin is the least disruptive option' with the same

working hours and working language as London. E1mln towards professional

relocation costs. Will create a 'Relocation Group' to aid the move from London.

     Geographical spread: Already home to European Foundation for the

Improvement of Living and Working Conditions (Eurofound). Says that focus for

EBA relocation should be continuity as it is an already-existing agency.

     Pitch quotes: 'Ireland has been at the heart of the European Union for over

forty years, including as a founder member of the Single Market and of the euro,

and we remain strongly committed to EU membership.' Taoiseach Leo Varadkar

reminds readers that Ireland are not the UK.

     'The retention of the specialised staff in the EBA is vital to ensure

minimal disruption to its important work of ensuring that the prudential

rulebook applies to all financial institutions in the Union in a consistent

way.' Finance Minister Paschal Donohoe believes Dublin most likely city to

ensure retention of existing EBA staff from London.

     Also bidding for the EMA.

     FRANKFURT

     Key pitch: We are the new finance centre in Europe.

     Building: Various options, some already built, some still in construction.

Suggestion of housing in the Westhafen tower - the same building as EIOPA - for

'synergies'.

     Rent: Lower than London, Paris and Luxembourg. Free rent 'could be

considered', Managing Director of Frankfurt Main Finance, Hubertus Vaeth, told

MNI.

     Accessibility: 'Europe's most efficient major airport' and two high-speed

rail network train stations. 'The geographic heart of Europe' means ease of

access.

     Families: More than 30 existing schools offering 'European and

international curricula', including state bilingual schools and two specifically

European schools. Not just jobs in finance available - Frankfurt airport is a

big employer. English often language of business for international companies.

     Business continuity: Mainly focuses on the talent pool available for new

hires: 100,000 currently work in financial services sector in the region. 34

'first-rate higher education institutions' nearby.

     Geographical spread: Poor - Germany is already home to the European

Aviation Safety Agency (EASA) and European Insurance and Occupational Pensions

Authority (EIOPA). Argues that smooth transition more important for rehousing

EBA than geographical spread.

     Pitch quotes: 'The decision by the British people to withdraw from the

European Union raises many questions - not least in the area of financial market

regulation ... This makes it all the more important to minimise such risks and

to take timely measures that will ensure stability and give us the certainty to

plan ahead. Selecting an optimal location or the future headquarters of the

European Banking Authority is one such measure.' Finance Minister Wolfgang

Schaeuble plays on Brexit uncertainty.

     LUXEMBOURG

     Key pitch: No, we are the new finance centre in Europe - and one of the

three EU capitals to boot.

     Building: New building on Route d'Arlon set to be completed by year end

2018, so there's still time for the EBA to request specific adjustments for

their needs.

     Rent: Rent-free. A Luxembourg official could not confirm how long for.

     Accessibility: International airport offers direct flights to international

destinations and London City, the most central airport in London. High-speed

rail to Paris. Low-speed rail and coaches to other EU destinations.

     Families: Over 60% of pupils in Luxembourg are non-native. Various

international schools on offer, including two European schools. Many

international companies offering employment; highlights that authorities accept

paperwork in English for those wanting to set up their own business.

     Business continuity: Estimates two-three days for a 'light move' of the

EBA; if the EBA wants to take all its furniture and IT equipment suggests a

rolling pattern of moving 30-35 staff members over four days until completion.

     Geographical spread: Poor - already home to three EU agencies and EU

institutions. Barely mentioned in pitch. A 1965 law advises that 'in principle'

new financial institutions should be housed in Luxembourg, but they aren't using

this to push for the already-existing EBA.

     Pitch quotes: 'Luxembourg is one of three European capitals and host to

European institutions and agencies. The country lies at the heart of Europe,

with Brussels and Strasbourg close by.' Prime Minister Xavier Bettel and Finance

Minister Pierre Gramegna say EU heartland a more important consideration than

geographical spread.

     PARIS

     Key pitch: Great connections to Europe - we are the future of finance

     Building: No specific building named but offers areas of La Defense or the

centre of town, near the stock exchange (Bourse).

     Rent: Possibility of an 'initial rent-free period and/or partial coverage

of refurbishment costs'.

     Accessibility: Two international airports, Eurostar to London, high-speed

rail across Europe.

     Families: Foreign language schooling available but no specifically European

school. Economic activity in the Paris region 'close to three times that of the

Land of Hesse' (Frankfurt) for jobseeking spouses.

     Business continuity: Premises can be available from Q2 2018. A programme of

visits to the city will be available if the EBA decides to relocate here.

     Geographical spread: Poor. France is already home to four EU agencies,

including the European Securities and Markets Authority (ESMA) in Paris - whose

proximity is proclaimed repeatedly in the pitch.

     Pitch quotes: '[T]he EBA stands at a crossroads as the United Kingdom

prepares to leave the European Union. In the short term, the authority must act

quickly to find a new home.' President Emmanuel Macron believes in the seamless

transition to Paris.

     'As a place to live and do business, Paris bears many similarities with

London. Nowhere else in Europe comes close.' Honorary Governor of the Banque de

France, Christian Noyer, pushes the quality of life angle.

     cont

--MNI Brussels Bureau; +44 203-865-3851; email: tara.oakes@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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