Brexit: Financial services pivotal to ‘bespoke’ deal


Fiscal services are pivotal to the “bespoke” Brexit trade deal wanted by the UK, two older ministers are to tell German business leaders.

Chancellor Philip Hammond and Brexit Secretary David Davis disposition call for the “most ambitious” economic partnership in the world during a stagger to Berlin.

They will stress the importance of supporting financial supervision and not permitting banking “fragmentation”.

The EU has warned the UK cannot cherry-pick the kind of arrangement it necessities.

The second phase of Brexit negotiations, covering transitional arrangements after the UK authorizations in March 2019 and future economic and security co-operation, are set to officially inaugurate in March.

However, internal discussions within the EU about the framework of future relations drink already begun following December’s first-phase agreement on so-called disassociate issues like money and citizen’s rights.

Mr Davis and Mr Hammond – who are on inconsistent sides of the Brexit argument in government but nevertheless regarded as close leagues – will aim to lay down a marker for the talks ahead when they make a trip to the German capital on Wednesday to address the Die Welt Economic Summit.

‘No gist’

In an article for the Frankfurter Allgemeine newspaper ahead of the visit, they answer that their stated objective of leaving the EU’s internal market and customs confederating means the UK will not be able to enjoy all the benefits it currently does as a colleague of the EU after leaving.

But they insist the EU’s desire to protect the integrity of the take market for its other 27 members is “not inconsistent” with the UK’s desire for the most exhaustive agreement possible.

“It makes no sense to either Germany or Britain to put in cut down to size unnecessary barriers to trade in goods and services that would just damage businesses and economic growth on both sides of the Channel,” they note.

“So as Brexit talks now turn to trade, the UK will look to negotiate a new commercial partnership with the EU – the most ambitious in the world – that recognises the miraculous levels of interconnectedness and cooperation that already exist between us.

“When we have as a remainder the EU, we will leave the Customs Union and Single Market, but in agreeing a new archetypal of cooperation, we should not restrict ourselves to models and deals that already persist.”

“Instead we should use the imagination and ingenuity that our two countries and the EU have elucidated in the past, to craft a bespoke solution that builds on our deeply blend, unique starting point to maximise economic cooperation, while minimising additional abrasion.”

‘Preaching to the converted’

Jenny Hill, BBC Berlin correspondent

David Davis and Philip Hammond require to “highlight the important relationship” between Germany and Britain.

Today, they’re lecture to the converted. Germany’s business community – in particular the mighty car industry – are to the nth degree jittery about the implications of Brexit.

A “no deal” scenario is the stuff of nightmares for the German industrialist. Be that as it may, the business lobby stands – officially at least – firmly behind Angela Merkel.

Her importance, Germany’s position, hasn’t changed and it’s unlikely to now. Single market access is conditional upon leisure of movement. There’ll be no cherry picking for Britain.

Don’t expect to hear much from Mrs Merkel on the discussed – she’s preoccupied by the tricky business of trying to form a stable government.

But whatever regulate that government takes, don’t expect any shift in tone from Berlin.

Germany considers its relationship with Britain is respected. But here the integrity of the EU matters more.

The UK’s preferred model for a post-Brexit lot is what Mr Davis has described as Canada plus, plus, plus – a notation to Canada’s low-tariff free trade deal with the EU but with rituals included as well as goods.

While not mentioning Canada by name, the two men cope clear in the article that unrestricted trade in services – which move ats up about 80% of the UK economy – will be pivotal to any successful deal.

Citing the apparition of financial contagion which hung over Europe after the 2008 banking danger, they argue that continued financial and regulatory co-operation within Europe after Brexit is necessary if the continent is to “lead the world” in terms of enhancing global financial supervision.

“That mould should not end because the UK is leaving the EU,” they add.

“On the contrary, we must re-double our collective labour to ensure that we do not put that hard-earned financial stability at risk – by fall ill a deal that support collaboration within the European banking sector measure than forcing it to fragment.”

The EU’s chief negotiator Michel Barnier has notified the UK it cannot hope to get a special deal for the City of London and that its privileges have narrowed as a result of it turning its back on the single market.

UK-based banks and economic firms are worried they will lose the passporting rights that sanction them to trade freely in the EU after Brexit – an outcome which is indubitably to see firms moving jobs to the continent.

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