Paris will become the leading center for European financial markets

Paris will become the leading center for European financial markets, as international banks can transfer their business there after the Brexit, according to the French Central Bank governor Francois Villeroy de Galhau.

"While Brexit is bad news for the UK and Europe, it represents a historic opportunity to restructure the European financial system", said the banker. "In the future there will be no dominant financial center, as London is now, but rather an integrated network of centers specializing in various activities. In this respect, Paris has many advantages to become the largest corporate finance and innovation center in Europe. We have very good signals that major international banks will deploy their core business in Paris", added Francois Villeroy de Galhau.

Paris is now one of the largest centers for corporate bond issues, asset management and direct investment in Europe after London.

Banque de France set target to become the "central bank of Europe's markets" and supported various initiatives for the development of European market infrastructure for commercial paper, lending with additional guarantees and securities-backed lending.

At the same time, French President Emmanuel Macron, as a former investment banker, took a number of steps to attract financial companies from London.

France reduced its wealth tax to cover only real estate, introduced a 30% flat tax on capital gains, and abolished the highest wage tax in banks. All this is in addition to lightening the labor market regulation that Macron has taken shortly after taking office last year.