Brexit warnings and conflicting statements.
The UK’s Secretary of State for Exiting the European Union, David Davis has warned that Parliament could veto the withdrawal treaty with the EU. Addressing a Wall Street Journal event in London, David Davis said that as the divorce agreement includes a payment of up to £39 billion, MPs are unlikely to sign it off unless it includes “substantive” detail on what a future trade deal will look like.
Davis also reportedly claimed that the financial services industry will not be significantly damaged by Brexit and will suffer far fewer job losses that originally thought, according to Reuters. Davis comments: “The reason that the City is the biggest and most successful financial centre in the world is not just Europe, it’s about the mass of skills, the business environment here, it’s about the reliability of tax law.”
In stark contrast according to City AM, a senior City figure has warned that the UK risks being stuck with a “token, minimalist” deal on financial services as part of the post-Brexit agreement with the EU in October. They state while services are likely to be referenced within the final deal, it will be “just a slightly uninspiring, lowest-common-denominator” inclusion that will result in “dramatically less” access than is currently enjoyed.
“They will say it’s the most comprehensive deal the EU has ever done on services with any third country and that will be true, but it will not only be less than we have through the Single Market, it will be dramatically less.”
Brexit Partners view is that the red lines laid down by both the UK Government and the European Union make it difficult to reach a compromise.
Dr. Ray Nulty is Managing Partner at Brexit Partners
Article reposted with permission from Brexit Partners. To find out more visit Stand 892