The goal of the initiative is to „jointly develop solutions and strategically advance the financial center“, Hessian Minister President Boris Rhein said in a statement following the meeting last week of the new Financial Center Cabinet.

During the session, held at Commerzbank headquarters in Frankfurt, a policy paper developed by the Financial Center Task Force was presented to the state government. The document identifies key areas of action aimed at „revitalising“ the financial centre, and thereby strengthening Germany as a business location.

The alliance takes a concrete stance on location-related conditions. The joint paper advocates for greater flexibility in labour regulations for skilled professionals and executives, the crediting of foreign withholding taxes, and VAT relief on syndicated loans. Under the themes of risk and regulation, financial sector representatives call for fair regulatory standards in global competition, and a reduction in documentation requirements. Additionally, regulatory oversight should not only focus on traditional objectives such as financial stability and consumer protection but also on enhancing the competitiveness of the financial centre. To future-proof the location, the recommendations also include measures to support innovation and start-ups, such as promoting the use of new technologies, and establishing regional ecosystems to assist start-ups in their formation and growth.

Another key focus is the mobilisation of capital, for instance, through a „targeted expansion of support for private and company-based capital-funded pension schemes.“ The revitalisation of the securitisation market is also on the agenda, particularly after the European Commission recently reaffirmed its plan to reform the EU Securitisation Regulation by early summer 2025. The WIN initiative, which raises funds for innovation and infrastructure, is also set to continue.

An additional ambitious goal is to position the financial centre as a „pioneer in practical and internationally competitive sustainability solutions.“ Frankfurt further aims to benefit from its proximity to top-tier academic institutions such as the House of Finance, the Leibniz Institute SAFE, and the Frankfurt School. Supporting this „intellectual infrastructure“ is a key objective of the initiative. Finally, the Financial Center Cabinet is exploring ways to attract international institutions more effectively. One proposed measure is the establishment of a „central body to coordinate efforts at the federal level.“