EU negotiators demand the UK to sign to their “level playing field” agenda, for better deal on financial services.

EU officials state the UK is seeking special treatment in relation to financial services. The EU claims that the UK wants to ensure banks, insurers and asset managers have predictable access to EU markets. The EU grant something called “equivalence” to any third country if the EU deems its rules are equivalent to theirs. 

An EU diplomat said: “The UK is seeking co-management of financial equivalence decisions. “They want an in-built consultation process that unilaterally revoking of any licences would not be as easy as it is for third countries currently.” An EU official described Britain’s demand as “binding joint procedures for withdrawing equivalence”. 

But the European Commission is said to have rejected the concept. EU sources said the bloc is concerned that Britain could begin to diverge away from the bloc’s rules in the “short to medium-term” after leaving the transition period on equal footing. The EU is saying they will grant a better long term deal on services if the UK adheres to EU rules post Brexit deadline, this means if the UK binds its self with their “level playing field” demand, we get a better deal from the EU. 

The “level playing field” agenda being pushed by the EU is to cap the competitiveness of the UK as it leaves the EU. This competitiveness cap, comes with EU rules and regulations meaning we would be restricted from gaining decent trade deals for the UK as it may outdo the terms the EU have currently with third countries. This is why Boris Johnson and his negotiators are pushing for a real FTA and not the half measure agreement, which is on the table by the EU.

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