Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
Will those agreements stand if the Withdrawal agreement is not ratified and a trade war develops? In the short term I understand there are some "service" the city provide which other EU financial services centres are ill-equipped to provide, and the Commission may have agreed some deals on a strictly needs must basis.

Longer term, I can't see the EU wanting to maintain a dependency on a financial services centre outside its own boundaries. There is simply too much money to be made by the elect few, and perhaps some extra tax revenues for Governments concerned. I expect the loss of very lucrative City services to other EU centres will be the single most devastating effect of Brexit, as it will have a radical impact on government finances.

Index of Frank's Diaries

by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Mon Aug 26th, 2019 at 09:01:04 PM EST
[ Parent ]
yes, that's why I was surprised when I read that an agreement had been reached.

But nevertheless, such is the claim

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Mon Aug 26th, 2019 at 09:20:37 PM EST
[ Parent ]
archived: PART V, Financial Provisions, of the draft Withdrawal Agreement was provisionally agreed by the parties March 2018. It was one of the few wholly adopted. In that sense, being the earliest, one might reasonably construe that (1) "The City" successfully lobbied its business needs to the extent permitted (by relocating ops to an EU27) and (2) all provisions therein, engrossing EU financial settlement and supervisory authorities, are least likely to be modified in the unlikely event that the EU agrees to modify the Withdrawal Agreement.

The ECB reiterated guidance from 2018:

As discussed in a Notice published by the European Commission on 8 February 2018, in the event of a no-deal Brexit Union law would cease to apply to the United Kingdom, which would become a third country. In such a scenario, several of the provisions of the Capital Requirements Regulation and Capital Requirements Directive could apply in a different manner (or not at all)*, as far as the United Kingdom - or UK-linked exposures or assets - are concerned. Accordingly, the ECB expects banks to be prepared for differences in the application of the prudential provisions after the end of October 2019.
For your convenience, final draft of the Withdrawal Agreement concluded Feb 2019, which the UK has yet to ratify, at Part V.

You may now avigate the full document from the hyperlink table of contents anchored at the bottom of the screen.
--
* ECJ jurisdiction (PART III), convened EU-UK arbitration panel, or GATT 1994 protocols in the event of 'no-deal'.

Diversity is the key to economic and political evolution.

by Cat on Mon Aug 26th, 2019 at 10:52:29 PM EST
[ Parent ]
Any provisions for financial services contained in the Withdrawal agreement will fall if that agreement is not ratified. Some separate provisions may be enacted to overcome immediate legal issues with current transactions etc., but I doubt a far reaching deal will be reached without all of the issues covered by the Withdrawal Agreement being settled. Each country will have a veto on any deal after Brexit, and I can't see Ireland agreeing to anything until the border issue is sorted.

Index of Frank's Diaries
by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Tue Aug 27th, 2019 at 10:34:59 AM EST
[ Parent ]
The reality is UK status as third country viz. EU27.

Third country status is defined by provisions of TFEU and GATT 1994 wherever cited in the Withdrawal Agreement. International instruments to which UK and EU are parties will succeed "bi-lateral" terms of the WA.

Absent an act to revoke its A.50 and regardless of an act to ratify the Withdrawal Agreement (transition inclusive) or "flextesion" deadlines of the so-called (no) negotiation period, UK will finally convert to third country.

Accordingly, UK financial and banking services firms have been and are entering conforming private charters with EU/EC (espec. data sharing) and each EU27 nation-state (espec. tax regime) where they intend to domicile for purposes of business including but not limited to fiduciary obligations to UK gov financial settlement with EU gov outstanding.

Diversity is the key to economic and political evolution.

by Cat on Tue Aug 27th, 2019 at 03:42:01 PM EST
[ Parent ]

Display:

Occasional Series