As we know, the EU love to play dirty when it comes to individual countries being punished. The EU, over recent months, has refused London “equivalence” status in the financial markets.
Due to this, last month, Amsterdam overtook London as Europe’s biggest share trading centre for the first time.
This fall in the top status isn’t because Amsterdam outplayed London; it’s because the “Equivalence” status was not given to London by the EU. This move is seen as a deliberate action to politically attack London’s financial markets, hoping London adheres to EU rules going forward.
In a report, economist Catherine McBride explains the underhand tactics being played by the EU.
Catherine said: “For the UK presently has not only equal but identical, financial regulations to the European Union. The Commission claims that equivalence has been withheld because the UK could change its regulations in the future.
“However, the Commission could withdraw equivalence with only 30 days’ notice, so this is hardly a rational excuse.
“In reality, the Commission has refused to grant trading platforms located in the UK equivalence to trade euro denominated EU shares with the aim of forcing businesses to relocate from London.
“This makes a mockery of EU claims about level playing fields and seems to breach the World Trade Organisation (WTO) ‘s most-favoured-nation rules.”
“The EU wants the UK to agree to mirror EU regulations indefinitely, even when those regulations don’t suit the UK’s massive financial markets and in some cases appear to have been specifically designed to hobble it.
“However, the reason London has remained a centre of international investment for so long is precisely why the UK must leave the EU regulatory stranglehold. Divergence from EU rules is already happening – the UK needs to become a nimble regulator to ensure that financial firms can bring new products to market in the City.”
As you can see, the EU is saying due to London’s possibilities of doing better than nations in mainland Europe; they have to play dirty to cap the UK’s competitiveness early. Brussels want complete equivalence not on market access but on how competitive Britain can be.
London has remained a centre of international investment for so long is precisely why the UK must leave the EU regulatory stranglehold. The UK needs to become a nimble regulator to ensure that financial firms can bring new products to market in the City.https://t.co/GCkpfMTcB5
— Catherine McBride (@CeeMacBee) February 22, 2021