Brexit deal unlocks closer City-eu cooperation

BRUSSELS has opened the door to a financial services deal with the City of London after Rishi Sunak’s Brexit deal was rubber-stamped by EU leaders.

The EU Commission had been blocking an agreement to boost financial services co-operation until a row over post-brexit border arrangements in Northern Ireland was resolved.

A memorandum of understanding was thrashed out between the two sides in March 2021, but then put on ice as relations nosedived. But it is now poised to be revived following talks between James Cleverly, the Foreign Secretary, and EU negotiator Maroš Šefčovič.

The pair met in London yesterday to sign-off on the Windsor Framework, which has ended the two-year stand-off over the Northern Ireland Protocol.

In a joint statement they said the deal was expected to unlock improvements in cross-channel ties on trade, energy and security. “They looked forward to the signing of Memoranda of Understanding on financial services and on intellectual property soon,” it said. The agreement will bring banking cooperation out of a deep freeze and is seen as the first step towards a wider deal with the EU for the City.

It will set up a new joint forum where senior figures from both sides will meet regularly to discuss upcoming regulation and challenges in the sector.

Miles Celic, chief executive of Thecityuk, said: “This will be a vital step towards ensuring continued industry co-operation and continuity between the UK and EU.”

Brussels has also agreed to look at new ways that trade barriers faced by British exporters can be eased.