This article for the Telegraph dated 11.02.21 begins with this warning to the EU:
In the words of former Bank of England Governor Mark Carney, the UK has been “Europe’s investment banker” for years. But experts say that Brussels has “never been 100pc comfortable” with London's dominance in financial services.
PwC’s global head of Brexit policy Andrew Gray points to the “political ambition from Europe to have a degree of self-sufficiency in its own financial services industry and capital markets”.
That aspiration - super-charged by Brexit - has been underlined by the European Union’s hardline refusal to grant equivalence to the Square Mile, which drew the wrath of Carney’s successor, Andrew Bailey, this week. “All regulation is political,” says William Wright, founder of the New Financial thinktank.
But experts also warn that punishing London for leaving the EU also risks leaving Europe markets with deeper scars as the bloc takes the policy equivalent of cutting off its nose to spite its face.
For the full article in pdf please click on this link:
This article followed one on the previous day in the Telegraph by By Tim Wallace ; Harry Yorke, Whitehall Editor and Lucy Fisher, Deputy Political Editor which includes these comments from the Governor of the Bank of England - Andrew Bailey :
In response to a question from The Daily Telegraph after a speech to finance chiefs, Mr Bailey said: "Is the EU going to cut the UK off from itself? There are signs of the intention to do so at the moment, but I think that would be a mistake. I think that would lead to the fragmentation of markets.
"The problem with the fragmentation of markets is that it raises the cost of finance for everybody, including, by the way, the citizens of the EU. It will raise the cost of doing business in the EU."
London was shut out of the single market when the post-Brexit transition period ended, severing links with the Continent. Much of this access could be restored through the EU's so-called equivalence regime, but Brussels is dragging its heels over giving permission for this in key areas.
Mr Bailey's remarks are a significant escalation in the row over British regulators' determination to set their own finance rules after Brexit.
The article also includes an explanation of the difference between equivalence and mutual recognition by Anna Isaac
For the full article in pdf please click here:
The above articles are accompanied with one by Matthew Lynn for the Telegraph on 11.02.21 entitled: Five ways the City can fight back against the EU which can be read by clicking on this link: