The fate of London’s financial center is an important component of Brexit. It’s a major source of trade and revenue for the U.K. It’s also an important hub in global markets and the economy. If London’s financial institutions can’t continue their open trading with European counterparts after the U.K. leaves the EU, there could be a cascade of problems.
This article says even if the EU and U.K. can’t reach a broader agreement soon, they are likely to sign another document that ensures London’s financial center can continue trading openly.
Talks over a broader deal are mired in a disagreement over an Irish “backstop” – an insurance policy to ensure there will be no return to a hard border on the island of Ireland if a future trading relationship is not in place in time.
But negotiators are close to agreeing wording on financial services that would go into a declaration on future relations, which be included alongside any divorce deal, according to British officials.
Glen said EU politicians are increasingly worried about being cut off from Britain’s financial markets because all the other financial centres in Europe are smaller in size.