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BREXIT

Brexit: US bank Citigroup ‘seeks licence in France’

US banking giant Citigroup has requested a licence in France for brokerage activities which it is planning to move out of London after Brexit, a senior executive was quoted as saying by a French business daily Monday.

Brexit: US bank Citigroup 'seeks licence in France'
Photo: AFP

James Cowles, who heads up Citi's operations in Europe, Africa and the Middle East, told Les Echos the bank was trying to keep as many options open as possible.

He said the recent labour market reforms adopted by the government of President Emmanuel Macron made France a more attractive place to do business, and Citigroup was interested in adding several activities to its banking operations in Paris.

Competition has heated up in recent months between cities hoping to lure business from London once Britain leaves the European Union in March 2019.

The terms of Britain's exit from the bloc are still unclear, but many financial firms are planning for a possible move of their EU operations into the bloc.

Frankfurt, which is home to the European Central Bank, is widely seen as being in the lead to attract London financial exiles.

In July, Citigroup informed its staff it was converting a German subsidiary into an investment firm to transfer the headquarters of its EU brokerage activities there.

It said Frankfurt was the first choice given the city's infrastructure and the staff it already had in place there.

However Citigroup also already planned to boost its presence in other cities that have been seeking Brexit business, including Paris, Amsterdam, Dublin and Luxembourg.

Cowles noted that Citigroup had already moved its European banking operations to Dublin in 2016, before the Brexit vote.

Cowles told Les Echos that London would still remain Citi's operations across the Europe, Africa and Middle East region. He said 6,000 of the the bank's 19,000 Europe-based employees are in London.

He said Citigroup believes Brexit would affect no more than 100 to 200 jobs.

TRAVEL NEWS

EES: Eurostar could limit services over new biometric passport checks

Eurostar could be forced to cut the number of trains when the EU's new biometric border checks (EES) are rolled out in October, the owner of London's St Pancras International Station has warned.

EES: Eurostar could limit services over new biometric passport checks

HS1, the owner of the station and operator of the high-speed line between London and the Channel tunnel, is the latest body to raise concerns over the impact on travel of the EU’s new Entry/Exit System (EES) checks that are set to come into force in October 2024.

The new system which requires citizens from outside the EU or Schengen area to register before entering the zone would lead to long delays and potential capping of services and passenger numbers, HS1 warned.

The company said it needed nearly 50 new EES kiosks to process passengers but the French government had only proposed 24.

In evidence to the European scrutiny select committee, HS1 wrote: “We are told that the proposed kiosks are ‘optional’ as the process can be delivered at the border, but without about 49 additional kiosks located before the current international zone [at St Pancras] there would be unacceptable passenger delays of many hours and potential capping of services.”

With just 24 kiosks, Eurostar would be unable to process all passengers, particularly at the morning peak, and this could “lead to services having to be capped in terms of passenger numbers”, HS1 warned, adding that simple space restrictions at St Pancras station would make the EES difficult to implement.

The EES will register non-EU travellers who do not require a visa (those with residency permits in EU countries do not need to register but will be affected by delays) each time they cross a border in or out of the Schengen area. It will replace the old system of manual passport-stamping.

It will mean facial scans and fingerprints will have to be taken in front of border guards at the first entry into the Schengen area.

Travel bosses have repeatedly raised the alarm about the possible delays this would cause, especially at the UK-France border, which is used by 11 million passengers each year who head to France and other countries across Europe.

Last week The Local reported warnings by officials that the new checks could lead to 14-hour queues for travellers heading to France.

Sir William Cash, Chair of the European Scrutiny Committee, said: “Queues of more than 14 hours; vehicles backed up along major roads; businesses starved of footfall: this evidence paints an alarming picture of the possible risks surrounding the Entry-Exit System’s implementation.

“Clearly, this policy could have a very serious impact, not only for tourists and travel operators but also for local businesses. I implore decision makers on both sides of the Channel to take note of this evidence.”

READ ALSO: What affect will the EES border system have on travel to France?

The Port of Dover has already been struggling with the increased checks required since Brexit and there are fears the situation could be even worse once the EES starts to operate.

Given the possible impacts, the House of Commons European Scrutiny Committee last year launched an inquiry calling for views by affected entities with deadline for replies on January 12th 2024.

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