Paris vies to overtake London as finance hub post-Brexit

British Prime Minister David Cameron once gleefully offered to "roll out the red carpet" for French executives wanting to escape staggering wealth taxes.

Now, with London's red carpet fraying after the Brexit vote to leave the European Union, Paris is stepping in to welcome bankers, investors and businesses who may want to escape the uncertainty hanging over the City's role as a global finance hub.

"In this new environment which is taking shape, we want France to be attractive," Prime Minister Manuel Valls said on Wednesday.

As competition grows among Europe's capitals to benefit from the financial fallout of Brexit, Valls unveiled a series of measures to boost the allure of Paris.
 

Notably, he confirmed plans to cut France's corporate tax rate to 28 per cent from 33 per cent, a move previously announced by President Francois Hollande.

Britain's vote to leave the European Union "created shockwaves, for all European citizens but also, in a very concrete manner, many businesses settled in the United Kingdom," Valls said.

Valls said he wanted to improve the tax and legal framework to "welcome even more companies (and) make Paris the capital of smart finance."

The prime minister announced a tweak to a system allowing foreign employees to benefit from tax reductions, making it applicable for eight years instead of five.

Beyond these fiscal measures, the government also plans to put in place a "single entry point" to facilitate administrative matters for foreign companies seeking to set up shop in France -- where red tape can be a nightmare to navigate.

This service will help companies with questions about real estate, residency permits, schools and other issues.

Valls said France would open "as many international sections as needed in schools" to allow children of foreign employees to be taught in their mother tongue.

The Brexit vote has several European capitals clamouring to take London's spot as a major finance centre, such as Frankfurt, Luxembourg and Dublin.

France is traditionally perceived as "anti-business", with its inflexible and hard-to-understand labour code.

According to the World Bank's 2016 "Ease of Doing Business" report, France ranks 27th out of 189 countries, while Britain comes in sixth.

The Socialist government came into power in 2012 promising as 75 per cent "supertax" on top earners -- which sent the rich fleeing -- and became another symbol of France's opposition to big business.