Two weeks after leaving the EU, the EU commission is already plotting a plan to map out how to take business away from London’s financial services sector.
EU MEP’s have put the EU Commission under pressure to put together a “‘master plan” of action against London’s financial sector. They’re saying this plan is so the EU is less reliant on London for their financial services. This plan is said to be released tomorrow to navigate a way from EU relying on London.
According to an Express article, the commission released a paper saying: “The COVID-19 crisis has highlighted vulnerabilities in the solar-dominated international financial system.”
“The withdrawal of the United Kingdom from the EU strengthens the need to further deepen the Union’s capital markets.”
This move by Brussels could mean that Brussels may gradually end the UK financial services sector access to EU markets.
The paper continued saying: “A related source of risk is the excessive reliance of EU banks on foreign exchange swap markets.”
Markus Ferber German MEP demanded “‘master Plan” to cut the EU’s dependency on third-country financial trades. Markus wrote: “We need a clear step-by-step master plan that helps key financial sector businesses move from the United Kingdom to the European Union.
“A mere ‘wait and see’ approach will not do to bolster European financial markets.
“One of the key strategic priorities in the years to come has to be strengthening the Capital Markets Union and moving the strategically important clearing business to the EU.
“If the EU wants to play in the geopolitical champions’ league we need a financial system to match it.”