The UK hoped to reach an agreement on the role of the UK financial sector in Europe that would allow mutual recognition of financial services rules between London and Brussels. But although a preliminary “Memorandum of Understanding” was agreed in March of this year, which allows for engagement in affairs of the financial industry, no “Equivalence Agreement” has been signed for the sector.
Mairead McGuinness, EU commissioner for financial services, also admitted last night that there would be “no negotiations” on a deal.
The Irish politician stressed that when it comes to equality, Brussels is “looking now to what happens in the future”.
Ms. McGuinness also argued that any financial services business is in the “best interests of the financial stability of the European Union”.
The Commissioner, appointed in September 2020, added that Brussels did not have “poker cards” for financial services, claiming that London “made it very clear from the start that finance was not part of the conversation” in the initial negotiations on trade. Cooperation agreement.
Because of this, she claimed that the European Union will have multiple financial centers in the future.
Ms. McGuinness said: “What it means for the European Union, however, may not be a major financial center as London was the major financial center for the European Union.
“It [London] now is out so in my experience and my view we are going to see some centers for different services, whether it is Frankfurt or Dublin or Amsterdam, you will see how this evolves.
“I think there are opportunities for many Member States in this area.
READ MORE: Boris issues one final Covid warning ahead of Freedom Day
She said the European Commission would have regular dialogue and discussions with the UK on financial services issues.
The tough tone from Brussels comes after Chancellor Rishi Sunak had promised to “sharpen” the competitive advantage of the British financial services sector after Britain’s exit from the EU.
In his first speech at Mansion House, traditionally an annual address by the Chancellor of the Exchequer in the financial district of the City of London, Sunak said earlier this month that Britain’s exit from the European Union was a unique opportunity to adjust the rules while maintaining a high level of regulation maintain standards and open markets.
Brexit largely severed the city’s ties with investors in the EU, resulting in over 7,500 finance jobs being relocated from London to new hubs in the block, with Amsterdam overtaking London and becoming Europe’s largest stock trading hub.
In response, a UK government source said: “The EU has no real reason to deny Britain access to its financial markets and industries.”
A spokesman for the EU Commission said that work to approve the “Memorandum of Understanding” was in progress.