The European Union risks opening the door to another global financial crisis if it refuses to give London’s bankers a good trade deal, two senior U.K. ministers warned in a joint article for a German newspaper, as the finance industry emerged as a key battleground for Brexit talks.
Chancellor of the Exchequer Philip Hammond and Brexit Secretary David Davis wrote in a guest column for the Frankfurter Allgemeine Zeitung (FAZ) they want close cooperation between European Union and United Kingdom regulators after the country leaves, as part of an expansive trade deal covering both goods and financial services.
This will enable both sides to continue their work ensuring "such a catastrophe" as the 2008 crash "doesn’t happen again," the ministers added. We must re-double our collective effort to ensure that we do not put that hard-earned financial stability at risk, by getting a deal that supports collaboration within the European banking sector, rather than forcing it to fragment
They are both in Germany on Wednesday meeting business groups and making Britain’s case for a wide-ranging Brexit deal.
The EU and the U.K. are due to begin formally discussing their future trade ties in March. Both sides are now in the process of deciding exactly what they want to get from the talks.
On Tuesday, European Commission chief Brexit negotiator Michel Barnier reinforced his hardline stance on banking, after previously warning it will form no part of the trade agreement and saying "passports" for the U.K. finance industry will end.
While Barnier offered a glimmer of hope that some U.K. rules could be judged equivalent to EU regulations, he said there’s no chance the British financial sector will be granted the status of "generalized equivalence" of standards, which would allow companies to continue operating relatively freely. Click here
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