The European Union is not intent on stealing business from the City of London. EU financial services chief Mairead McGuinness said that the future access for Britain to the bloc’s financial market will hinge on.
Since Britain left the EU, the trading arrangements for Northern Ireland have created tensions. This is with Britain unilaterally delaying the implementation of some provisions. McGuinness, Ireland’s commissioner in Brussels, said that the EU was waiting to see the path that the Britain will choose. It is whether, sticking to obligations agreed when it left the EU or continuing to act on a unilateral basis. In the City Week event which is held by the City & Financial, McGuinness told that they hope that the UK will choose the first, more appropriate and sustainable path. And that will help them to cooperate across sectors, and that includes financial services.
When you sign up to international agreements and make commitments, partners need to be able to count on your word and your signature. Last December, Britain fully departed from the EU’s orbit. This largely severed the City from the bloc, and led to a shift in billions of euros in stock and swaps trading from London to the EU. The bloc is now seeking ways to shift clearing of euro derivatives from London to Frankfurt. Amsterdam is also proving an early winner. The Dutch city had displaced London as Europe’s biggest share trading centre in January, according to the data. They had overtaken London, and this to become Europe’s top corporate listing venue.
McGuinness said that the EU’s goal was to build up its own financial market infrastructure. Britain and the EU have agreed a memorandum of understanding for a new forum for cooperation in financial regulation. But it has yet to go live. They added that once the MoU is formally concluded, they will have to consider whether they can resume their financial services equivalence assessments. When they do resume their assessments, they would do so gradually, and on a case-by-case basis, taking into account the UK’s regulatory intentions and the EU’s interest.