The European Banking Authority (EBA) will relocate from London to Paris after the EU 27 foreign ministers voted in Brussels for the French capital at the expense of Dublin as EBA’s new hub on 20 November 2017.
The decision to relocate the EBA comes after that of the United Kingdom to withdraw from the European Union.
The European Banking Authority (EBA) works to ensure effective and consistent prudential regulation and supervision across the European banking sector.
It assesses risks and vulnerabilities in the EU banking sector through regular risk assessment reports and EU-wide stress tests.
Consequently, Paris will be home to the two major European institutions as the European Securities and Markets Authority (ESMA) is established in the capital since 2011.
“This is an important decision for the Authority that guarantees a seamless continuation of its activities by reassuring its current and future staff over the new location and putting an end to a period of uncertainty. The EBA is confident that France will support the Authority to ensure a smooth transition, which is crucial to continue delivering on its mission objectives of maintaining financial stability in the EU and safeguarding the integrity, efficiency and orderly functioning of the banking sector,” said the EBA in a statement.
The institution’s 159 employees are expected to move to Paris by 29 March 2019, the date on which Brexit will be effective.
The French offering to the EBA highlighted two possible location proposals, one in the business district of La Défense and the other in the central business district (quartier de la Bourse).
“Both provide the highest possible quality of amenities and services, will be entirely renovated by the start of 2018, and meet the full list of specifications outlined by the EBA in terms of both size and potential for hosting the meeting facilities and technical infrastructure required for its operations,” according to the French offering made to THE EBA.
Concessions will be made on the lease of the future EBA’s headquarters. The French government also promised the EBA to pay a compensation of €1.5m to cover all or part of its lease and fit out costs.
“The EBA would be in a position to fully run its operations in its new location right from the start of 2019,” suggested the Paris team in its offering.
The EU 27 foreign ministers have also chosen Amsterdam as the new hub of the European Medicines Agency (EMA), that is hitherto based in London.