The EU’s chief Brexit negotiator has said he wants to secure easy access to the City of London for countries in the bloc, in the first sign of a softer stance.
Michel Barnier reportedly told MEPs that he wanted a “special” relationship between the 27 remaining EU countries and Britain’s financial centre after Brexit.
The comments chime with warnings by Mark Carney, the Bank of England governor, who said this week that the EU’s financial stability is more at risk from Brexit than the UK's.
Europe blinks over Brexit talks? Chief Brussels negotiator says ‘special relationship’ with City of London needed after UK leaves
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Brexit sparked concerns that EU governments would find it harder to raise capital if they no longer had free access to the City Credit: Robert Harding/REX/Shutterstock
Telegraph Reporters
14 January 2017
The Telegraph
The EU’s chief Brexit negotiator has said he wants to secure easy access to the City of London for countries in the bloc, in the first sign of a softer stance.
Michel Barnier reportedly told MEPs that he wanted a “special” relationship between the 27 remaining EU countries and Britain’s financial centre after Brexit.
The comments chime with warnings by Mark Carney, the Bank of England governor, who said this week that the EU’s financial stability is more at risk from Brexit than the UK's.
It suggests that the EU will be willing to compromise with Britain at the negotiating table to make sure their financial institutions are not locked out of the City.
Eurosceptic MPs said the remarks showed that “commercial self-interest is overtaking mere politics” among EU leaders and boded well for Brexit negotiations.
Mr Barnier’s remarks were contained in minutes of a private meeting he had with MEPs which was obtained by The Guardian.
Michel Barnier, the EU's Brexit negotiator
"Some very specific work has to be done in this area," he said, according to the minutes.
"There will be a special/specific relationship. There will need to be work outside of the negotiation box... in order to avoid financial instability."
A spokesman for the European Commission told the Guardian that the minutes, drawn up by European Parliament officials, did not "correctly reflect what Mr Barnier said".
But the paper quoted a source who was at the meeting as saying the minutes represented a "more or less accurate" account of the discussions.
The disclosure will encourage pro-Brexit MPs who have long argued that the UK will have more leverage in the negotiations than some critics have allowed.
Steve Baker, the Tory MP and chairman of the pro-Brexit European Research Group, said: "As we were advised to expect by trade negotiators at the Special Trade Commission, commercial self-interest is overtaking mere politics. I hope we can accelerate that necessary process."
Mr Barnier's comments appear to reflect concerns that EU governments and countries will find it harder and more costly to raise capital if they no longer have free access to the City.
They echo the views of Mr Carney who told MPs on Tuesday that - at least in the short-term - the risks to financial stability from Brexit were now greater for the remaining members than they were for the UK.
"If you rely on a jurisdiction (the UK) for three-quarters of your hedging activities, three-quarters of your foreign exchange activity, half your lending and half your securities transactions, you should think very carefully about the transition from where you are today to where the new equilibrium will be," he said.
Europe blinks over Brexit talks? Chief Brussels negotiator says ‘special relationship’ with City of London needed after UK leaves
Michel Barnier reportedly told MEPs that he wanted a “special” relationship between the 27 remaining EU countries and Britain’s financial centre after Brexit.
The comments chime with warnings by Mark Carney, the Bank of England governor, who said this week that the EU’s financial stability is more at risk from Brexit than the UK's.
Europe blinks over Brexit talks? Chief Brussels negotiator says ‘special relationship’ with City of London needed after UK leaves
89 Comments
Brexit sparked concerns that EU governments would find it harder to raise capital if they no longer had free access to the City Credit: Robert Harding/REX/Shutterstock
Telegraph Reporters
14 January 2017
The Telegraph
The EU’s chief Brexit negotiator has said he wants to secure easy access to the City of London for countries in the bloc, in the first sign of a softer stance.
Michel Barnier reportedly told MEPs that he wanted a “special” relationship between the 27 remaining EU countries and Britain’s financial centre after Brexit.
The comments chime with warnings by Mark Carney, the Bank of England governor, who said this week that the EU’s financial stability is more at risk from Brexit than the UK's.
It suggests that the EU will be willing to compromise with Britain at the negotiating table to make sure their financial institutions are not locked out of the City.
Eurosceptic MPs said the remarks showed that “commercial self-interest is overtaking mere politics” among EU leaders and boded well for Brexit negotiations.
Mr Barnier’s remarks were contained in minutes of a private meeting he had with MEPs which was obtained by The Guardian.
Michel Barnier, the EU's Brexit negotiator
"Some very specific work has to be done in this area," he said, according to the minutes.
"There will be a special/specific relationship. There will need to be work outside of the negotiation box... in order to avoid financial instability."
A spokesman for the European Commission told the Guardian that the minutes, drawn up by European Parliament officials, did not "correctly reflect what Mr Barnier said".
But the paper quoted a source who was at the meeting as saying the minutes represented a "more or less accurate" account of the discussions.
The disclosure will encourage pro-Brexit MPs who have long argued that the UK will have more leverage in the negotiations than some critics have allowed.
Steve Baker, the Tory MP and chairman of the pro-Brexit European Research Group, said: "As we were advised to expect by trade negotiators at the Special Trade Commission, commercial self-interest is overtaking mere politics. I hope we can accelerate that necessary process."
Mr Barnier's comments appear to reflect concerns that EU governments and countries will find it harder and more costly to raise capital if they no longer have free access to the City.
They echo the views of Mr Carney who told MPs on Tuesday that - at least in the short-term - the risks to financial stability from Brexit were now greater for the remaining members than they were for the UK.
"If you rely on a jurisdiction (the UK) for three-quarters of your hedging activities, three-quarters of your foreign exchange activity, half your lending and half your securities transactions, you should think very carefully about the transition from where you are today to where the new equilibrium will be," he said.
Europe blinks over Brexit talks? Chief Brussels negotiator says ‘special relationship’ with City of London needed after UK leaves