Published: Tue, March 13, 2018
Business | By Max Garcia

European Union tells Britain to 'face up to hard facts' on Brexit

European Union tells Britain to 'face up to hard facts' on Brexit

In aggregate, a "hard Brexit" would hit EU27 firms slightly more than British companies, according to a study from the consulting firm Oliver Wyman and law firm Clifford Chance, published Monday.

Thankfully we should get lots more news on what Brexit means in the next week as the EU Summit scheduled for the 22-23rd March becomes a more important event.

The EU and Britain are hoping to seal a deal this month on a transition period after Brexit, and start talks on their future relationship this spring.

The motion, prepared by the European Parliament's Brexit Steering Group, stresses that the EU has binding common rules, common institutions and common supervisory, enforcement and adjudicatory mechanisms, to make it clear that even closely-aligned third countries with identical legislation can not enjoy similar rights, benefits or market access to those of EU member states.

"The risk of destabilising the fragile peace process must be avoided at all costs".

Meanwhile, the Taoiseach called for "certainty" from London regarding how it plans to protect the Border and how it sees its future relationship with Brussels.

Accepting that UK-based banks will lose their passporting rights to provide services across the EU, May promised more details shortly on how the United Kingdom government envisions financial services as part of a comprehensive trade agreement.

"It's hard to see how any deal that did not include financial services can look like a fair and balanced deal", said Mr Hammond.

The EU is seeking to be exempted from planned USA import duties of 25 percent on steel and 10 percent on aluminum, but says Washington has not made clear how the exemption process works. The UK will look to match European Union regulatory standards (and possibly adopt identical rules) to ensure that trade in most goods remains as free as possible. To ensure a level playing field, to ensure the integrity of the single market, and to ensure financial stability, this is why we cannot offer the same in services as we can in goods.

Financial services is the only area in which Britain has a trade surplus with the European Union, making it very keen to preserve its banks' current access to continental Europe. I fully respect the chancellor's competence in defining what's in the UK's interest.

Last December the Bank of England proposed allowing European Union banks in Britain to continue as branches in London after Brexit on condition of some form of reciprocity from Brussels to avoid lenders having to find extra capital to become fully fledged subsidiaries.

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