PARIS: The French Government is planning to unveil additional tax cuts next year to encourage London’s bankers and financiers to relocate to Paris.
According to a report in French daily Les Echoes, the tax cuts are likely to focus on reducing the level of employer social security contributions for high-salary workers, which make the cost of employing skilled employees in France considerably more expensive than for companies in neighboring countries.
It is believed that the French Government wants to reduce social security contributions to a level similar to those in Germany, where contributions for high-income earners are capped.
The move would increase competition between Paris and Germany’s financial hub Frankfurt for the thousands of financial sector jobs that may be relocated from London in the coming years, depending on the outcome of the ongoing Brexit negotiations.
