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EU warns UK not to kid itself on 'equivalence' for finance

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AFP Strasbourg
Last Updated : Feb 11 2020 | 8:54 PM IST

Brussels' chief Brexit negotiator on Tuesday brusquely shot down a bid floated by the UK to retain access to the EU market for British financial firms, signalling hardball trade negotiations lie ahead.

"There must be no illusion on this issue: there will be no general, global or permanent equivalence on financial services," Barnier told the European Parliament in the eastern French city of Strasbourg.

That dismissal was backed up by European Commission chief Ursula von der Leyen who said the bloc was "fine" with Britain walking away without a deal if it so chose, although she preferred to see an "ambitious" accord struck.

The blunt language mirrors that being used by Britain, which formally left the EU two weeks ago but which still trades like a member under a transition period ticking down to the end of this year.

The government of British Prime Minister Boris Johnson insists it will not seek to extend the transition.

This week it stepped up warnings to British business to prepare to operate outside the single market from 2021.

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But its finance minister, Sajid Javid, on Tuesday argued in an op-ed for London's City AM newspaper that Britain should secure general regulatory "equivalence" for UK financial companies so they would be deemed compatible enough to maintain access to the EU market.

However he also insisted that "from next year, we will have the freedom to make our own rules outside the constraints of the (EU's) single market and customs union". And he stated "there will be differences" between future British financial regulations and EU ones.

Barnier was categorical that Javid's idea of a broad equivalence was not acceptable.

"We are not negotiating these issues with the United Kingdom. We are verifying consistency and where we judge it possible we will give equivalences on one financial industry sector or another," he said. "Brexit is not business as usual."

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First Published: Feb 11 2020 | 8:54 PM IST

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