EU could spark global bank crisis if it thwarts Brexit deal, UK warns

Portfolio
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 to read more about the issue.
 

More in Economy

lanchid-budapest-eso-idojaras-kod
October 16, 2025 15:31

Rating agency warns Hungary against pre-election profligacy

Deficit could overshoot the target

D_MTZ20251013010
October 16, 2025 09:02

Hungarian PM Orbán also talks about possible 14th-month pension

They are working on its introduction

mnb
October 16, 2025 08:31

Hungarian c. bank files criminal complaint over HUF 81 billion headquarters renovation

Suspicion of embezzlement and fraud arose

drón
October 15, 2025 13:47

Vineyard threat grows as disease keeps spreading in Hungary

Grapevine flavescence dorée is already affecting 17 counties

LATEST NEWS
Charting is displayed using TradingView's technology, a platform, where you can build advanced charts, spot upcoming trends in the stock screener, and find inspiration in multiple trading ideas

Detailed search