In collaboration with Convergence, VOICE OF ASIA is proud to present timeless articles from the archives, reproduced digitally for your reading pleasure. Originally published in Convergence Volume 10 in 2012, we present this story on Frankfurt, a city you could call Germany’s center over Berlin.
If Germany is the heart of Europe, then Frankfurt am Main – better known as Frankfurt – is its industrial and commercial centre. While Berlin may be the political capital, and Munich its cultural and sporting hub, there is no doubt that when it comes to doing business in Germany – all roads lead to Frankfurt.
The City of Emperors
Located in the mid-western German state of Hesse, Frankfurt is one of the oldest cities in Germany, with a history that can be traced back to the 1st century AD when it was settled by the Roman Empire. Its name – Frankfurt am Main is a slight variation of the German term “Ford of the Franks (as the tribe there were known) on the River Main, and even during its earliest days, it was an important centre for the Romans in what eventually became modern day Germany.
While Frankfurt – like the rest of Europe – fell into disrepair after the fall of the Roman Empire, it eventually regained prominence far greater than its former glory during the Holy Roman Empire – which was the secular and military wing of the Catholic Church. From the year 855 to 1562, the election of the Emperor was held in the city with his coronation taking place in Aachen, but from 1562 to the time of the last Emperor Franz II both the election and coronation were held in Frankfurt.
Eventually, the Holy Roman Empire – like its rather less pious predecessor – collapsed after the Napoleonic Wars. Yet Frankfurt’s importance was not dented, and it became the seat of the Bundestat (Parliament) of the new German Confederation in 1815. That lasted for half a century until 1866 when the Prussians led by Otto von Bismark took over the city, and the political heart of Germany was transferred to Berlin.
Interestingly enough, there was a proposal to make Frankfurt the capital of the new German Federal Republic (West Germany) after the country was divided in the aftermath of the Second World War. However, it lost out to the lesser-known city of Bonn, as West German leaders were aiming for the eventual reunification of Germany with a capital in Berlin, and they believed it would not do for a temporary capital to be located in such an established city.
The Financial Heart of Europe
However, a good city cannot be kept down, and while the politicians may talk in Bonn and then Berlin, after reunification in 1991, the pulse of commerce and industry was and still is very much in Frankfurt. Today, the city is not just the fifth largest city in Germany after Berlin, Hamburg, Munich and Cologne, with a population of approximately 688,249 within the city itself; it is also in the top 20 of a number of prominent lists.
For instance, it is the only German city to be ranked as an Alpha World City (category 3) in the University of Loughborough’s 2010 survey, while influential publication Foreign Policy has placed it in 20th position on its rankings of Global Cities. Furthermore, the 2thinknow Innovation Cities Index places it as 6th in the world for economic and social innovation, and the Worldwide Centres of Commerce Index ranks Frankfurt in 8th place.
In some ways, one might wonder whether or not Frankfurt’s eminent position is a result of a self-actualising prophecy. After all, one of its monikers is Bankenstadt (The City of Banks) – as a result of it having 215 banks located there. Unsurprisingly, Frankfurt is also home to some of the most prominent financial organisations in Germany and Europe, such as Deutsche Bank and Commerzbank – the country’s largest and second largest banks respectively – as well as others including (but not limited to) UBS, Bank of America, Goldman Sachs, Societe Generale, Bank of China, and Merrill Lynch.
Adding further weight to Frankfurt’s claim to being the financial capital of both Germany and Europe is the fact that it is also home to two of the most important central banks in the world – namely the Deutsche Bundesbank (the central bank of Germany – the world’s fifth largest economy) and also the European Central Bank, which decides monetary policy for the 17 member-states of the eurozone. Therefore it is apt that the city proudly proclaims itself to be “The Home of Euro” – in reference to the common European currency.
While an integral part of Frankfurt’s economy, the banks are not the be all and end all of the city’s vast business offerings.
Befitting its status as a commercial and financial 63centre, Frankfurt’s bourse – the Frankfurt Stock Exchange – is also the largest in Germany – accounting for 90% of all trades in the country, as well as the third largest in Europe, after the London FTSE and the NYSE Euronext. Pride of place belongs to the blue chip DAX index, which is where the 30 largest companies in Germany are listed, many of them with their headquarters in Frankfurt.
Technology Leader
New as well as traditional industries thrive in the fertile ground for business that is Frankfurt, and one such sector which has gained prominence of late is biotechnology. It is not for nothing that Germany is regarded as a world leader in this discipline, and it is second only to the United States in terms of production. Furthermore, companies that wish to tap into the huge opportunities offered in Frankfurt for biotechnology development will be glad to know that there exists a very strong infrastructure to support them in reaching their goals.
For example, Frankfurt University is one of the top 10 institutions in the world specialising in the research of biological structures and bio-information technology. Then there are the various technology parks and clusters which have helped enhance the industry in the city, and cement its reputation for excellence in the field.
Foremost among the afore-mentioned clusters is Science City Frankfurt-Reidberg. Located in north-west Frankfurt and managed by the FIZ Frankfurter Innovation Centre for Bio-technology, it is part research centre, part business hub – part BUSINESSresidential district and an area where the academia and industry come together to form synergies in life – science development. Among the institutes located here are the Max-Planck Institute of Brain Research and the Max-Planck Institute of Biophysics – both named after the famed German Nobel Laureate – as well as the ZAFES – Centre for Drugs Research, Development and Safety, and the FIAS – Frankfurt Institute for Advanced Studies.
As far as chemical and pharmaceutical R&D is concerned, the place to be is the Frankfurt-Höchst Industrial Park, which is where 90 companies specialising in this field have their research and operational headquarters. Then there is the Griesheim Industrial Park. With over 30 companies and a history dating back 150 years, this cluster features mainly organisations focusing on the chemicals, carbon/graphite and plant protection fields. There are also a number of businesses there that concentrate on other sectors and Griesheim Industrial Park has become a very popular location for small and medium sized companies.
Since success in the world of modern business is very much dependent on the speed and effectiveness of communication, it is a given that the IT and telecommunications industry is thriving in Frankfurt. The city is home to 92 telecommunications infrastructure providers, and it has the second most data centres in Europe.
In total, there are 3,438 IT and Telecommunications companies in Frankfurt, providing direct employment for 24,014 people. Business owners and companies thinking of establishing a presence there will also take heart in the knowledge that Frankfurt is also one of the most connected cities in Europe, with 4,000 km of fibre optic cables providing high-speed Internet access to its residents.
The Trade Fair City
While biotechnology, high-tech manufacturing as well as IT and Telecommunications are relatively new, one of Frankfurt’s biggest business sectors is also one of its oldest – namely trade fairs. It is an industry which dates as far back as the 12th century, when in the year 1240, the city became the first in Europe to receive the blessings of the Holy Roman Emperor to hold annual exhibitions.
The Empire and Emperors may have come and gone, but the tradition has remained strong, and today Messe Frankfurt (The Frankfurt Trade Fair) occupies a pre-eminent position as the largest exhibition site in Europe as well as the third largest in the world, measuring 578,000 square metres. Reflecting this is the fact that some of the most prominent trade fairs in the world are held there.
Germany At a Glance
- Official Name: Federal Republic of Germany or Bundesrepublik Deutschland
- Capital City: Berlin
- Major Cities: Cologne, Munich, Hamburg, Frankfurt
- System of Government: Bicameral Federal Republic (Lower House: Federal Diet or Bundestag, Upper House: Federal Council or Bundesrat)
- Head of State: President Christian Wulff
- Head of Government: Chancellor Angela Merkel
- Official Currency: Euro (€)
- Official Language: German
- Individual Tax Rate: Progressive tax rate of 14% for income over €8,004, up to 45% for income over €250,730
- Value Added Tax: 5%
- Corporate Tax Rate: 15% flat rate
One such example is the Frankfurt Motor Show. A biennial event showcasing upcoming and concept passenger cars from major manufacturers, it is the largest one of its kind in the world. The previous show was BUSINESSheld in September 2011, and the next one will take place in 2013. For publishers, literary agents, librarians, printers, writers and bibliophiles, October is the month to look out for as it is when the Frankfurt Book Fair takes place. Regarded as the most important book fair in the world, this event has a legacy of more than 500 years.
Those who are involved in the commercial goods sector, as well as casual consumers, should mark Ambiente on their calendars, as it is the largest consumer goods fair in the world. Then there is Achema – also another world’s largest trade fair of its kind; this time for plant engineering. It should also be noted that the company Messe Frankfurt – which organises these and many other events – is also the premier trade fair organiser in the world.
An Education Centre
Being such an important business hub, it comes as no surprise that Frankfurt is perhaps the most multi-ethnic city in Germany, with 40% of its population of non-German descent. Furthermore, an additional 25% of the residents there are foreign nationals. While a good number of these immigrant communities are from the eastern part of Europe such as Croatia, Serbia, Greece, Bosnia and Herzegovina, Romania, Bulgaria and Turkey to name a few, Asia is also more than adequately represented as Frankfurt is home to the second-largest Korean community in Europe as well as the largest Sri Lankan Tamil population in Germany.
A number of foreigners in Frankfurt have also been attracted to it for education purposes. After all, being a world-class city in terms of commerce and industry, it is a given that Frankfurt is home to top-class education institutes. For example, where scientific research is concerned, there are the highly regarded research institutes such as the Frankfurt Institute for Advanced Studies – which conducts research on physics, chemistry, neurosciences, and computer sciences, and three Max Planck Institutes – namely for European History of Law, for Biophysics and for Brain Research.
Unsurprisingly, given its status as a financial capital, Frankfurt also has some of Europe’s best business schools, such as the European Business School – which is the leading financial studies institute in Germany. Also topping the table in terms of prestige is the Goethe Business School – a wing of the Goethe University of Frankfurt.
Incidentally, the Goethe University of Frankfurt – or the Johann Wolfgang Goethe University of Frankfurt, to give it its full name – is the premier university in the city, and its oldest, having been set up in 1914. In 1932, it received the name by which it is now known, in honour of the great poet and writer who was also a native son of Frankfurt.
Speak the Language
Although English is the most widely used language for business in Frankfurt, knowing a few German phrases would come in very handy when travelling there.
- Ich – I
- Sie/Du – You/You (Sie is used in formal situations and when addressing strangers or people of superior status or business partners, whereas Du is more informal)
- Eins – One
- Zwei – Two
- Drei – Three
- Vier – Four
- Funf – Five
- Sechs – Six
- Sieben – Seven
- Acht – Eight
- Neun – Nine
- Zehn – Ten
- Guten Morgen – Good Morning
- Guten Tag – Good Day
- Mein Name ist – My name is (can be interchanged with Ich bin which means I am)
- Wie geht es dir? – How are you?
- Ich kan kein Deutsch – I can’t speak German
- Sprechen sie Englisch? – Do you speak English?
- Ja – Yes
- Nein – No
- Vielleicht – Maybe
- Bitte – Please
- Danke – Thank you
- Danke Schoen – Thank you very much
- Bitte Schoen – You’re welcome
- Entschuldigen Sie bitte – Excuse me
- Wo is die…? – Where is the…?
- Auf Wiedersehen – Goodbye
Today, the University is divided into four different campuses spread out across the city, namely Campus Bockenheim, Campus Riedberg, Campus Westend and Campus Niederrad. Throughout its illustrious history, it has counted among its faculty members, eminent academics and scientists including Paul Ehrlich – Nobel Laureate for Medicine in 1908, Max Born – Nobel Laureate for Physics in 1954, and Hans Bethe – Nobel Laureate for Physics in 1967.
Furthermore, the University is the co-sponsor of the Deutsche Bank Prize in Financial Economics, which is given to those who have made seismic contributions in the research of finance and economics leading to practical results.
Getting There and Getting Around
If you plan to travel to Frankfurt, you would probably be glad to know that the city boasts one of the best transport infrastructures in Europe, with high-speed rail and large autobahns (highways) being among the highlights there.
And then of course there is the airport. One of the finest in the continent, Frankfurt Airport is the third busiest airport in Europe by passenger traffic and is home to Lufthansa – Germany’s flag carrier and the largest airline in Europe.
Once you’ve landed in Frankfurt, getting around will be easy, as the city also boasts the largest railway station in Europe with high-speed trains that provide connectivity within Frankfurt as well as to the rest of Germany and the continent. This is the legendary Frankfurt Hauptbahnhof (which is German for Main Station), and even if you aren’t boarding a train, a visit to the station is a must just to marvel at its size.
For intra-city travelling, taking the Underground train may be the fastest mode of transportation. Another way you might want to see the city is to hop on a tram or a bus. The former is not only charming in terms of its classic appeal, but is also an eco-friendly way of getting around.
And then of course, you can hire a car and drive through the city – and even out of it – as the extensive road network enables seamless driving throughout the country. Be aware though that, like many other European countries, Germany is a left-hand drive nation, unlike Malaysia and other Commonwealth countries.
When in Frankfurt
With 680,000 residents, Frankfurt is one of the least populated cities in the world, and it is not for nothing that its people have proudly dubbed their home “A Global Village”. Despite its size though, it cannot be said that the city lacks attractions for both the casual and business visitor. Of course, if you are in town during one of the major trade fairs for which Frankfurt is so renowned, such as the Frankfurt Motor Show, no doubt the world famous Messe Frankfurt trade fair grounds should be one of your destinations.
But even when there are no trade fairs, there is still enough in Frankfurt to fill one’s daily itinerary. For those who wish to take in the sights, one good place to start would be the Romerberg. Reputed to be the site of the first Roman settlement in Frankfurt, this is a charming and quaint square with buildings from the 14th and 15th century – a stark contrast to the modern day financial hub which the city has become.
Continuing with the historical theme, you might also want to pay a visit to the Kaiserdom – the 13th century cathedral which was where the Emperors were crowned during the Holy Roman Empire. And of course, it would not do to go to Frankfurt without dropping in at Goethe Haus – the birthplace and residence of Germany’s greatest literary genius. It is now a museum dedicated to his brilliance.
However, it is not just old sights. For those who want to get the perfect view of the city, why not head on over to the Main Tower. Open to members of the public who, with a small fee, can go up to the viewing platform where they will have a commanding vista of Frankfurt.
And to round up your trip, or for those who love shopping, the Zeil is the must-not miss place in the city. Known as the “Golden Mile” or “The Fifth Avenue of Germany”, this famous shopping street has everything to satiate the shopaholic – from bargain buys to high end indulgences.
A city unlike many others in Europe, Frankfurt is both large in terms of prestige and power, and yet has that old school charm that makes it appealing to visitors. The financial and trade fair capital of Europe, Frankfurt has opened itself to visitors for years, welcoming people from all over the world, and showcasing through its hospitality, the best of Germany.
