Brefugee, noun, UK, informal – a worker who is to be displaced by Brexit
Paris and Frankfurt are set to battle over so-called Brefugees.
The workers, who have been displaced by Britain exiting the European Union, will in most cases have to choose between the French capital and the German financial centre.
While Theresa May’s statement last week that she would be willing to turn the UK into a low-tax, fiscal paradise offers a new kind of hope to the future of the UK’s economy, the fact remains that many of the jobs in the banking sector will need to leave London.
That’s why the relocation experts at Movinga.de have conducted a study to consider the cost and efforts of a Brefugee exodus. In combination with the 2017 Relocation Index, here is a comprehensive view of the two cities that are expected to win the vast majority of these jobs.
Name of bank Number of relocations planned
JP Morgan 4,000
Citigroup 2,000
Morgan Stanley 2,000
Goldman Sachs 1,600
Bank of America 1,400
HSBC 1,000
UBS 1,000
BNP Paribas 200
When their annual salary and bonus are combined, traders and investors earn an average of €116,996.06 per year. Collectively, those 13,200 workers earn almost €1.6 billion. This represents a huge opportunity to the French and German economies in terms of spending money and tax revenue.
After tax, the German and French economies could expect a spending boost of almost €1 billion euros every year if they were to attract these high earners.
With an income tax rate of 41 per cent, the French government would earn an additional €634,733,432 per year from these high earners. The German government could earn even more with their rate of 42 per cent, potentially bringing in a total of €650,214,735 annually. Both countries could also earn billions from the additional corporation tax they would receive.