A likely merger between Germany’s insurance giant Allianz and third-largest bank Dresdner is expected to lead to a number of similar actions in Europe.

Analysts are tipping that the $197 billion merger will force other financial services giants to speed up their own merger activities. Germany’s second-largest bank, HypoVereins, has already announced a limited merger with Munich Re, and the largest bank, Deutsche Bank, may form an alliance with Axa.

The catalyst for this sudden spate of activity in Germany’s financial services sector is a government decision to remove a range of tax provisions originally designed to keep investment in the industry healthy. Now banks and insurers are removing their cross-shareholdings in each other, buying control of rivals and setting up new allfinanz deals.