Brexit: Financial services pivotal to 'bespoke' deal

From BBC - January 9, 2018

Financial services are pivotal to the "bespoke" Brexit trade deal wanted by the UK, two senior ministers are to tell German business leaders.

Chancellor Philip Hammond and Brexit Secretary David Davis will call for the "most ambitious" economic partnership in the world during a trip to Berlin.

They will stress the importance of supporting financial supervision and not allowing banking "fragmentation".

The EU has warned the UK cannot cherry-pick the kind of arrangement it wants.

The second phase of Brexit negotiations, covering transitional arrangements after the UK leaves in March 2019 and future economic and security co-operation, are set to officially begin in March.

However, internal discussions within the EU about the framework of future relations have already begun following December's first-phase agreement on so-called divorce issues like money and citizen's rights.

Mr Davis and Mr Hammond - who are on opposite sides of the Brexit argument in government but nevertheless regarded as close allies - will aim to lay down a marker for the talks ahead when they travel to the German capital on Wednesday to address the Die Welt Economic Summit.

'No sense'

In an article for the Frankfurter Allgemeine newspaper ahead of the visit, they will acknowledge that their stated objective of leaving the EU's internal market and customs union means the UK will not be able to enjoy all the benefits it currently does as a member of the EU after leaving.

But they will insist the EU's desire to protect the integrity of the single market for its other 27 members is "not inconsistent" with the UK's desire for the most comprehensive agreement possible.

"It makes no sense to either Germany or Britain to put in place unnecessary barriers to trade in goods and services that would only damage businesses and economic growth on both sides of the Channel," they write.


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