Michel Barnier: UK risks no-deal on post-Brexit trade unless it compromises (BBC)
- The EU’s chief negotiator says the UK will “have to move” if it wants a post-Brexit trade deal by the end of 2020. Michel Barnier said he was “worried and disappointed” about the lack of concessions from his British counterpart, David Frost, after the pair met in London on Tuesday. Barnier said the end of October was a “strict deadline” to finalise an agreement for next year.
- No 10 said it was “clear [a deal] will not be easy to achieve”. The prime minister’s official spokesman said “major difficulties remain” between the two sides, but the UK government was keeping in close contact with the EU.
- If a deal is not made and ratified by parliaments by the end of the year, the UK will go into 2021 trading with the bloc on World Trade Organisation rules – which critics fear could damage the economy. However, Boris Johnson has ruled out any extension to the end of the transition period, saying it was his priority to “get Brexit done”.
- Speaking at an event in Dublin ahead of the eighth round of trade talks next week, Mr Barnier claimed the EU “has moved” on some of its objectives. The chief negotiator for the bloc said it was now the “choice” and “responsibility” of the UK to do the same, namely over key issues such as the so-called level-playing field and fisheries.
Bank of England’s Bailey disagrees with EU barrier to investment banking services after Brexit (Reuters)
- An EU refusal to grant cross-border access to investment banking services from the City of London shows how the bloc wants to force Britain to keep adopting its rules in future, Bank of England Governor Andrew Bailey said today.
- Brussels has said that for now it won’t allow investment banks to service customers in European Union member states directly from London after Britain’s unfettered access to the bloc ends on 31 December, forcing the banks to use their EU hubs instead. The EU said it wants to review the rules first.
- The EU is set to decide in coming weeks on how much direct access it will grant all types of UK financial activity under its system that checks whether British rules are “equivalent” or as robust as those in the 27-nation bloc.
- Bailey told parliament’s Treasury Select Committee it was “interesting” that the largest amount of value in equivalence-based cross-border activity with the EU would be in investment services.