March 6, 2021

Lakefront Hartwell

Complete News World

British central bank governor warns EU

D.Andrew Bailey, President of the Bank of England, spoke very clearly about the negotiations between London and Brussels on mutual recognition of financial market rules. “I am afraid that the rules and standards we have in the UK will not work in a world dictated and determined by the European Union,” Bailey told the annual Mansion House address on the Internet in London on Wednesday evening.

The head of the central bank said it was not possible for London to approve Brussels’ demands. He warned that if the EU tried to pull the UK financial sector out of its market, it would be a mistake.

Bailey also faced fears that London could become a “Singapore in the Thames” by tightening financial market rules and low taxes. “Let me be clear: none of this means that Britain can create a less regulated, more risky, financial center and system,” the governor said.

Not out of town

Services were not included in the negotiations on the Brexit trade agreement between the EU and the UK. British financial services providers lost automatic access to the EU’s internal market at the end of the Brexit transition phase earlier this year.

This did not lead to great fear from the City of London, but many banks and other companies established branches in cities such as Paris, Dublin, Amsterdam and Frankfurt. About 7000 jobs were relocated with them. By March, the two sides want to reach an agreement on mutual recognition of standards known as equilibrium. The overall service sector accounts for 80 per cent of the total value of the UK.

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