EUR/GBP Forecast: UK’s Future in the EU’s Financial Market
The European Union has no intention of stealing business from London. Still, Britain’s future access to the EU bloc’s financial market will depend on whether it can be trusted to keep its word, said by today EU financial services chief Mairead McGuinness.
Trade arrangements for Northern Ireland have left tensions since Britain left the EU. In fact, Britain unilaterally delayed applying some provisions in the protocol.
McGuinness, the Irish commissioner in Brussels, said the EU was waiting to see which path Britain had chosen. Will it stick to the commitments agreed upon when it left the EU? Or will it continue to act on a unilateral basis.
Hoping that the UK will choose the first, more convenient, and sustainable path. That will help us cooperate in all sectors, including financial services, McGuinness said. When you sign international agreements and take on obligations, partners must be able to count on your word and your signature. ”
Britain’s departure from the EU in December last year largely separated financial London from the EU. This led to a change in daily stocks in billions of euros and trade-in substitutes from London to the EU.
The EU is now looking for ways to redirect the clearing of euro derivatives from London to Frankfurt.
Amsterdam is currently first on the list. The data in February shows that the Dutch city displaced London in January as the largest European center for stock trading. In fact, overtook London and became the leading European place for showing companies so far this year. McGuinness said that the EU’s goal is not to “steal” business from London but to build its own financial market infrastructure.
Britain and the EU have agreed on a memorandum of understanding for a new forum for cooperation in financial regulation. But it has not yet been published. This is an important step for any perspective of the EU city’s accession to the EU according to the bloc’s rules on “equivalence.”
Once the MoU is formally concluded, we will need to consider whether we can proceed with the assessment of financial services equivalence, ”McGuinness said. As we proceed with the assessments, we would do so gradually and on a case-by-case basis, considering UK regulatory intentions. EU interests.
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