German Banks Warn Of Dangerous Brexit Deals With UK Fearing Britain Will Punish Nation

Europe's Future Is More Important Than Brexit Says Merkel

Britain could secure trade deals that would hurt Germany and lead to lost opportunities for the economy, Frankfurt's finance industry has warned.

Michael Kemmer, chief executive of the Bankers Association, in Frankfurt, said: "There can, under no circumstances, be swap negotiations in the way that, for example, the Germans get free access to the UK for their car industry and the UK banks get free access to the German financial market in turn.

"London will surely lose significance.

Frankfurt wants to replace London as the region's top finance centre

"We are talking about a significant number of jobs that could move from London to Frankfurt."

For Frankfurt to be one of the winners from Brexit, German politicians have now been urged to act.

Mr Kemmer said the government must abolish the tax deduction prohibition for bank levy.

He added: "It is a scandal that this is not deductible in Germany, while it is the case in most other countries."

And Germany should now adapt its law to take advantage of Brexit, according to German critics.

Mr Kemmer said politicians should support Frankfurt as the future financial position number one in the EU.

He said: "A clear commitment is necessary."

The government has also been urged to actively work to attract the European Banking Authority (EBA) from London to Frankfurt.

And there should be more offensive location marketing.

Mr Kemmer warned: "So far Paris is far more offensive."