+++ P.O. (BBG) EU Is Said to Refuse to Budge on Post-Brexit Financial Services

P.O.

Just the idea that the EU can do business without London’s banks and financial services is a perfect idiocy.

I wonder where these Eurocrats get their ideas from…

Certainly not from somewhere I would spend a nanosecond of my time listening…

If the EU continues in this line of thinking, I am afraid that this is not going to end well, both for the EU and for the UK.

This kind of revenge from the EU against the UK is another idiocy that is going to cost all of us a lot of money, and is going to impact the EU’s growth for decades.

Francisco (Abouaf) de Curiel Marques Pereira

(Bloomberg) — U.K. banks will have limited access to the
European Union’s single market after Brexit if the government
refuses to weaken its red lines, the European Commission told
diplomats, according to two people familiar with private
discussions in Brussels.
While the British government is aiming for a wide-ranging
agreement to give financial institutions full EU access, a
restricted approach similar to that which Canada enjoys is the
only viable option, Commission officials said in a presentation
to representatives of the 27 remaining nations on Tuesday. That
position is in line with the stance expressed earlier this month
by chief negotiator Michel Barnier. The Commission has
completely ruled out full passporting rights, which would allow
U.K. to sell services freely in the single market, the people
said.
Negotiations between the U.K. and the EU on their future
relationship are scheduled to begin in April. First, the EU’s
governments must reach their own common negotiation position.
While some countries, such as Luxembourg, want to grant Britain
a more generous offer on financial services, France and Germany
are taking a stricter line.
The Commission officials told diplomats that the U.K.’s
financial services access would probably be based on three
pillars:
* Canada-style free trade agreement model
* Some equivalence
* Regulatory cooperation

Most access to the bloc for non-EU countries depends on
equivalence, where the Commission recognizes that a country’s
rules and oversight of specific business lines are as tough as
its own. However, the Commission can withdraw that at short
notice, closing off market access with little right to appeal
and the U.K. is pressing for something more.
Financial-services companies in London aren’t waiting
around to see how the negotiations pan out. They have led the
way in contingency planning and leasing office space on the
continent so they can continue to operate as they do currently –
– whatever happens between now and exit day in March 2019.

Davos Plea

In an interview with Bloomberg in Davos last week,
Chancellor of the Exchequer Philip Hammond insisted that
financial services have to be part of the final trade deal “with
some sort of enhanced equivalence regime.” He warned that “it
has to be robust, objectively determined — not on the whim of
the EU Commission.”
The inclusion of financial services in the U.K.’s post-
Brexit arrangement with the EU has become one of the most
contentious areas. European officials say that Britain’s red
lines — such as ending the free movement of workers from the EU
— make it impossible for them to allow British banks the same
kind of access they get now.