Angela Merkel is to try to lure finance companies away from the City by making senior bankers exempt from Germany’s stringent labour laws.
The proposed change to the current regulations is intended as a sweeter for global banks who are considering moving the staff from their London home to the continent but may have reservations over Germany’s the strict laws governing employment.
The move would apply to those earning more than £215,000 (€250,000) in the banking sector and would make it easier for those companies to dismiss staff.
The move is being pushed by Volker Bouffier, vice chairman of the Christian Democratic Union (CDU) which is lead by Mrs Merkel, who backs the move.
Mr Bouffier said: We do not need the German protection against redundancy for top earners in banking.
“I see a political prospect of changing this law by the middle of next year or in the Autumn (of 2018), once the new government is in place.”
Importantly, Mr Bouffier is also the premier of the state of Hesse, home to the country’s financial centre, Frankfurt.