Top Navigation

British minister says banks need access to EU market – Reuters

Storm clouds are seen above the Canary Wharf financial district in London, Britain, August 3, 2010. REUTERS/Greg Bos/File Photo

LONDON Britain must find a “mechanism” that gives banks based in the UK access to the European Union’s single market after the country leaves the bloc, a government minister said on Thursday.

Banks who depend on a “passport” to offer their services across the EU from a base in London, worry they will be cut off from continental customers.

“We know that the banking industry needs to have something that gives them access to the single market,” Mark Garnier, a junior international trade minister told the British Bankers’ Association annual conference.

One solution touted is so-called equivalence, whereby banks in Britain would have access to the single market if they abide by rules similar to those in force in the bloc.

Critics have said that this system is unstable, as the EU could withdraw equivalence recognition at short notice.

“We have to find a mechanism that behaves like passporting and has greater security than equivalence,” Garnier said, adding that no existing trade model with the EU provides that.

He steered clear of saying whether Britain was heading for a hard Brexit – a clean break with the EU – or soft Brexit, meaning maintaining access to the single market in return for conditions such as continued acceptance of EU migrants.

The view becoming settled in government was for neither, but for a “right” Brexit, Garnier said. “Talking about soft and hard Brexit is probably a distraction.”

(Reporting by John Geddie and Huw Jones)

Next In World News

U.S. service member killed in northern Iraq: military statement

WASHINGTON A U.S. service member died on Thursday from wounds sustained in an improvised explosive device blast in northern Iraq, the U.S.-led military coalition said in a statement.

Syria says east Aleppo ceasefire has begun, promises ‘safe exit’

AMMAN The Syrian military said on Thursday a unilateral ceasefire backed by Russia had come into force to allow people to leave besieged eastern Aleppo, a move rejected by rebels who say they are preparing a counter-offensive to break the blockade.

Exclusive: Iran steps up weapons supply to Yemen’s Houthis via Oman – officials

WASHINGTON Iran has stepped up weapons transfers to the Houthis, the militia fighting the Saudi-backed government in Yemen, U.S., Western and Iranian officials tell Reuters, a development that threatens to prolong and intensify the 19-month-old war.

Source

No comments yet.

Leave a Reply


*

Powered by WordPress. Designed by Woo Themes