Brexit: UK doesn’t want to ‘subordinate City’ says expert
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Mujtaba Rahman from the Eurasia Group explained neither Britain nor the European Union wants to have a financial deal following Brexit. He explained that the UK’s view is that the sector would be regulated more effectively by the Treasury and Bank of England than by the EU Commission. Speaking to BBC News, Mr Rahman said: “I think there is close to zero chance an equivalence decision will be granted.
“The UK doesn’t want it and the European don’t want to grant it.
“The UK thinks it would be nice to have but not at the price of subordinating the city to rule taking from Brussels.
“I think there is a view that the sector would be much more effectively regulated by the Treasury and the Bank of England than by the European Commission.
“The European view is a prerequisite for equivalence is trust, co-operation and a stable relationship between the two sides which is decisively not the case between the UK and the EU at the moment.”
It comes after European Commission vice-president Maros Sefcovic said he has not discussed UK proposals that would restore the border on the island of Ireland.
A report in the Sunday Telegraph said Cabinet Office Minister Michael Gove is now considering an alternate “mutual enforcement” plan to the Northern Ireland protocol on Brexit.
It would remove the border from the Irish Sea and restore the land border in Ireland, and would require the UK and EU “to apply checks at the same level as each other”.
But speaking on Sunday, Mr Sefcovic said his discussions with Mr Gove this week had focused on the implementation of the protocol.
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He told RTE’s The Week In Politics: “What we discussed with Michael Gove was very much focused on the implementation of the protocol.
“For us what was a priority is the prosperity of the island of Ireland, unconditional support for peace and, of course, avoiding the hard border.
“These are the three key parameters which been the primary objective for signing up and negotiating the protocol.
“We are looking into the old possibilities, how to make sure that this would work.”
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Mr Sefcovic said the use of trusted trader schemes, simplifying export health certificates and extending the grace period for traders were measures being considered to smooth the implementation of the protocol.
He said there were many “benefits” for Northern Ireland which need to be explored.
He said: “I believe that we found a very unique solution where Northern Ireland is part of the single market, and at the same time off course it is the part of the internet UK market.
“So I think there is the unique possibility for Northern Ireland to develop new jobs, new growth and to have really, a very, very special place in both in single market and also in the internal UK market.”
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