For hundreds of years London reigned supreme as Europe's financial capital. Its dominant position in dealing in anything from foreign exchange to stocks and shares has never been in doubt. And the ECB is not located in London. Instead it has its headquarters in Germany's financial centre Frankfurt, which is now a serious pretender to London's crown. The cranes have been towering over Frankfurt as the city prepares for the euro.
Builders work furiously to construct new offices for business newcomers.
The presence of the European Central Bank is a major coup for Frankfurt, strengthening its international business reputation and enhancing its importance as a financial centre. That may make it a natural place for large banks to gravitate to. Pan-European stock market Frankfurt stands to benefit from the consolidation of Europe's stock markets. But at the forefront is a planned merger of the London and Frankfurt stock exchanges, which will bring large amounts of new business to Frankfurt and is likely to be a forerunner to a pan-European stock market. Frankfurt has the potential to become the financial hub of the 'eurozone' and is likely to take business away from smaller financial centres.