Sunday

25th Feb 2018

EU to exclude financial services from post-Brexit deal

The EU intends to exclude the financial services sector from a trade deal with the UK after Brexit, according to the latest tweaks in the EU's draft negotiating guidelines.

EU citizens must also be granted permanent residency in the UK after 5 years of living there.

Thank you for reading EUobserver!

Subscribe now for a 30 day free trial.

  1. €150 per year
  2. or €15 per month
  3. Cancel anytime

EUobserver is an independent, not-for-profit news organization that publishes daily news reports, analysis, and investigations from Brussels and the EU member states. We are an indispensable news source for anyone who wants to know what is going on in the EU.

We are mainly funded by advertising and subscription revenues. As advertising revenues are falling fast, we depend on subscription revenues to support our journalism.

For group, corporate or student subscriptions, please contact us. See also our full Terms of Use.

If you already have an account click here to login.

The new text spells out that any free trade deal that would allow the City of London, Europe’s leading financial centre, continued access to EU markets would require that Britain continues to respect the EU's regulatory and supervisory standards.

It serves a blow to British prime minister Theresa May, who has called an election for 8 June. In the letter she sent to the EU to notify UK's exit, she argued for an ambitious free trade agreement that covers financial services.

However, France, Germany and other countries are looking to attract financial companies to Paris and Frankfurt, and other cities once the UK leaves the single market with Brexit.

An earlier version only said that the future trade agreement should "not endanger financial stability in the Union and encompass safeguards against unfair competitive advantages".

The new line was agreed by EU advisers to head of state and governments on Monday (24 April) in a preparatory meeting ahead of the Brexit summit on Saturday (29 April), according to Reuters.

In another change in the draft guidelines, the EU wants to secure the right to acquire permanent residency in the UK for EU citizens who have continuously lived in the UK for five years, Bloomberg reported.

The EU has already said in its guidelines that "agreeing reciprocal guarantees to safeguard the status and rights derived from EU law" for EU and UK citizens caught up in the process "will be the first priority for the negotiations" for the bloc.

The new draft of the EU 27 will be discussed at a political level by European affairs ministers on Thursday, for a final preparation of Saturday's summit.

Juncker to visit May in London next week

The British prime minister invited the European Commission president for a discussion about the upcoming EU exit negotiations, while she prepares for general elections on 8 June with a "hard" Brexit agenda.

EU guidelines set out two-phase Brexit talks

According to the draft negotiating guidelines, the EU-27 would open negotiations on future EU-UK relations when "sufficient progress" has been made on citizens' rights, the British financial bill and the status of the border in Ireland.

Opinion

Brexit is about Europe's future as well

Europe must learn the lessons of TTIP and ensure that the negotiations transparently address the broad interests of European citizens, including on climate change and the environment.

Barnier warns UK Brexit transition period 'not a given'

After one of the tensest week so far in Brexit talks, 'substantial' disagreements remain between the UK and the EU over transition, with Michel Barnier insisting London needs to decide on the future relationship and Ireland for Brexit to happen.

News in Brief

  1. EU calls for immediate ceasefire in Syria
  2. UK's post-Brexit vision is 'pure illusion', Tusk says
  3. EU leaders express solidarity with Cyprus in Turkey drill row
  4. EU to double funding for Sahel forces
  5. EU parliament president: 'The immigration problem is Africa'
  6. May to unveil EU departure strategy next week
  7. Pregnant workers may be dismissed, EU court rules
  8. Romanian minister demands anti-corruption prosecutor fired

Stakeholders' Highlights

  1. ILGA EuropeAnkara Ban on LGBTI Events Continues as Turkish Courts Reject NGO Appeals
  2. Aid & Trade LondonJoin Thousands of Stakeholders of the Global Aid Industry at Aid & Trade London
  3. Macedonian Human Rights Movement Int.European Free Alliance Joins MHRMI to End the Anti-Macedonian Name Negotiations
  4. Mission of China to the EUChina-EU Tourism Year to Promote Business and Mutual Ties
  5. European Jewish CongressAt “An End to Antisemitism!” Conference, Dr. Kantor Calls for Ambitious Solutions
  6. UNESDAA Year Ago UNESDA Members Pledged to Reduce Added Sugars in Soft Drinks by 10%
  7. International Partnership for Human RightsUzbekistan: Investigate Torture of Journalist
  8. CESICESI@Noon on ‘Digitalisation & Future of Work: Social Protection For All?’ - March 7
  9. UNICEFExecutive Director's Committment to Tackling Sexual Exploitation and Abuse of Children
  10. Nordic Council of MinistersState of the Nordic Region 2018: Facts, Figures and Rankings of the 74 Regions
  11. Mission of China to the EUDigital Economy Shaping China's Future, Over 30% of GDP
  12. Macedonian Human Rights Movement Int.Suing the Governments of Macedonia and Greece for Changing Macedonia's Name

Latest News

  1. EU agrees budget to focus on defence, security and migration
  2. EU leaders nix transnational lists, cool on 'Spitzenkandidat'
  3. Regions chief: calls for smaller EU budget are 'impossible'
  4. Election fever picks up This WEEK
  5. EU-Morocco fishing deal casts doubt on EU future foreign policy
  6. EU leaders put 'Spitzenkandidat' on summit menu
  7. European far-right political party risks collapse
  8. The key budget issues on EU leaders' table