The UK and EU are engaged in discussions about financial rules and market surveillance, so a Memorandum of Understanding (MoU) will be signed by the end of March. However, a draft letter of intent showed that Brussels can authorize direct market access to foreign financial firms if it believes their home market rules are in line with EU standards under a system known as “equivalence”.
The UK also wants EU equivalence to be result driven, which ensures that the focus is on whether UK and EU financial rules lead to the same result.
However, Brussels has already warned that an agreed letter of intent may not automatically lead to better EU access for the London financial industry.
Andrew Bailey, head of the Bank of England, furiously criticized the EU’s plans for being “very controversial”.
And an exclusive survey by Express.co.uk found that the British want the government to stand up to bullies from Brussels.
The poll found that 98 percent (8,464 people) felt it was time for Britain to tighten its stance on the EU.
Only 2 percent (201 people) disagreed and 32 people said they didn’t know.
A total of 8,697 people took part in Express.co.uk’s online survey, which took place on Sunday, February 28, 2021, from 1 p.m. to 9 p.m.
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One reader said: “We are wasting our time on these charlatans.
“Reduce our losses and start rebuilding our country without them intervening.”
Another said, “Just go with the World Trade Organization and get us out of all dealings with the EU.”
Another reader said, “Accept that we are gone and will not return. Accept that they are competitors, not friends.
“Treat them like they’re treating us. Enough is enough. Time to get real.”
And another said: “This situation will only last as long as Britain fails to show the EU that its calculated vengeful actions will no longer be tolerated and that a price will be paid.
“If there is to be an economic showdown between Britain and the EU, the longer this situation goes on, the better the situation, the greater the proportional damage the EU will do to us, given that Britain is currently doing nothing undertakes to harm the EU. “
This is because the UK financial services industry has been largely cut off from the EU since the end of Brexit on December 31, as the sector is not covered by the UK-EU trade agreement.
Trading in EU stocks and derivatives has already left the UK for continental Europe.
Currently, the EU can theoretically cancel equivalence decisions with a notice period of only 30 days.
However, industry officials also said drafting the document could be the first step in restoring trust between the EU and the UK.