European Banking Authority pitch faces rivals from other EU countries

The Government has confirmed it will make a pitch for a second EU regulator to relocate its offices and staff from the UK following the Brexit decision by seeking to lure the European Banking Authority (EBA) to Ireland

The future of the EBA, which has a role in supervising banks across the EU, has been up for grabs ever since the June 23 vote because it was unlikely the EU authorities and politicians in Paris and Berlin would sanction a key regulator remaining in London.

Frankfurt is already home to the European Central Bank.

Relocation of the EBA, which has 156 staff, became a racing certainty after British prime minister Theresa May’s government hardened its stance against upholding the principle of the free movement of people to work in the EU in its forthcoming talks with Brussels.

The UK government has signalled it expects tough talks when it starts the formal divorce proceedings when it triggers Article 50 of the Lisbon Treaty in March.

The Irish government has also launched a bid to relocate the European Medicines Agency to Ireland. However, Ireland’s pitch for the EBA will face stiff competition from other EU countries, who will argue that they too should host the prestigious regulator.

Confirming that it expects a tough contest, Finance Minister Michael Noonan nonetheless said it had made “a public declaration of interest in Ireland becoming the location for the offices of the European Banking Authority”.

Mr Noonan said: “While the UK continues to be a full member of the EU until the negotiations for their exit have been completed, preparations must be made for eventualities such as the relocation of certain European agencies such as the European Banking Authority.

“As a country with experience in providing links to banks and companies in the UK market, Ireland provides an ideal new home for the staff of the EBA.”

The Department of Finance said: “A number of other EU member states are interested in hosting the EBA but Ireland, with its significant financial services sector and efficient transport links to other European capitals, is ideally suited for the authority’s relocation.

"Ireland has a positive track record with hosting international organisations and has proven to be an attractive location for international staff of these international organisations.”