EU’s Barnier calls British financial market proposals ‘unacceptable’ By Reuters

© Reuters. FILE PHOTO: EU’s Brexit negotiator Michel Barnier gives a news conference after Brexit negotiations, in Brussels

By Huw Jones

LONDON (Reuters) – British proposals to give the City of London access to the European Union are “unacceptable” because they seek to maintain the benefits of the single market without the obligations, the bloc’s chief Brexit negotiator Michel Barnier said on Tuesday.

EU policymakers worry that the UK could gain a competitive advantage by easing financial rules, but Britain has said it would maintain high standards of regulation.

Barnier said Britain would like to make it easy to continue to run EU financial services businesses from London, with minimal operations and staff on the continent.

Many banks and insurers based in Britain have opened hubs in the EU to continue serving customers there irrespective of what deal London seals with Brussels.

“I will be blunt: its proposals are unacceptable. There is no way member states or the European Parliament would accept this,” Barnier told a Eurofi conference.

Britain’s finance ministry had no immediate comment on Barnier’s comments.

London and Brussels have an end of June deadline for completing “equivalence” assessments for determining access to each other’s financial markets.

Barnier said Britain has only responded to 4 of 28 questionnaires for assessing if UK financial rules are similar enough to those in the bloc to allow direct market access.

“So we are not there yet,” Barnier said.

Britain has said it has introduced all EU rules into UK law.

Barnier said the assessments are particularly challenging given that Britain has said it wants to diverge from EU rules once its transition period ends in December.

“This is even one of the main purposes of Brexit,” said Barnier, a former EU financial services commissioner.

Equivalence-based access to the EU is not available in areas like insurance, commercial bank lending or deposit-taking.

“Nothing in the agreement that we are negotiating will change this,” Barnier said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *