Another UK-EU battle seems almost certain
Remember the summer of 2018? The sun shining almost constantly, England’s footballers marching to the latter stages of a major international tournament, and interminable battles between
Westminster and Brussels over the future relationship between the UK and the European Union. Alas, the first two can’t be guaranteed — though we deserve some vitamin D after this winter and the midfield looks solid — but the third seems to be a nailed-on certainty.
Yesterday we saw the opening salvo from the European side in the form of a 42-page negotiating mandate that makes Finnegan’s Wake look an easy read.
The section on financial services is particularly vague, though notable for its absence is the EU’s previous insistence on a date for an “assessment of equivalence” between the UK and EU’s regulatory systems.
The respected former Brexit adviser Raoul Ruparel yesterday said this was an example of the EU choosing dates “which most suit its negotiating position.”
It’s hard to say whether this represents a hardening of the line on the behalf of the EU, or not; but it is clear that they’re thinking about it.
We are assured that so is our government. In this newspaper just over a fortnight ago the then-chancellor Sajid Javid laid out his plans for Britain to go its own way on financial regulations, to ensure that there was equivalence between our two systems but not to tie ourselves to all future continental decisions.
That makes sense in a world in which our economies are intertwined, with much of the meshing happening in the Square Mile and Canary Wharf, but also in an ecosystem which is swiftly giving birth to new, innovative financial products that Britain must be able to nurture and grow.
The UK will publish its mandate tomorrow, which a government spokesman said will include precise terms of what Downing Street will be seeking. They also confirmed that the government does, indeed, view financial services as an “important part of the UK economy.”
Contributing £132bn to the nation’s wealth, this seems accurate. If negotiations break down because of rows over chlorinated chicken or fishing rights, (valid issues though they are) many in the City will be forgiven for thinking that those a few stops west on the District Line have forgotten who is paying the bills — even if England is winning.
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