NEW: Draft #EU plan to maintain access to #UK clearing houses after #Brexit. @EU_Commission decision will safeguard #EU banks' access to LCH etc for 18 months to June 30, 2022: ft.com/content/2de23b…. A short thread: 1/
The plans reflect LCH's dominance in clearing euro-denominated derivatives, and stave off financial stability risks at the end of the #Brexit transition period. Both #ECB and #BOE have warned of this: 2/
But the @commission is also clear that it sees the 18-months as a breathing space to deal with that problem by building up the #EU's own clearing capacity and reducing reliance on London: 3/
The #EU's already adopted legislation to drive this process: the amazingly clunkily titled EMIR2.2 law. Adopted last year, EMIR2.2 seeks to boost #EU oversight of non-EU clearinghouses, and hands regulators powers to pressure them to move activities into the EU 4/
But all that is for the future, and for now the #EU is massively reliant on #London. Hence the need for the 18-month window: 5/
National governments are reviewing the @EU_Commission proposal, which is set to be adopted before the end of the month. ENDS
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Brussels warns of souring relations with UK over Northern Ireland: @Sam1Fleming and I interviewed #EU#Brexit chief @MarosSefcovic last week, and he went into detail about the frustration on the #EU side with slow progress on the NI protocol talks:
1) The #EU is still strongly pushing the idea that the #UK should sign a Swiss-style veterinary agreement to resolve problems with GB—>NI checks and controls.
@MarosSefcovic told us that it would "bridge" the current situation.
2) @MarosSefcovic said that such an agreement could be drawn up in "a couple of weeks" and only last for "a year or two", with the idea that it would be rescinded if incompatible with a #UK trade deal with the #US
It’s landed! @MichelBarnier’s #Brexit diaries are published in French today. @Sam1Fleming and I have been through the 542 pages, armed with coffee and a dictionary: 1/
1) Baffled by Boris: @MichelBarnier is frequently left scratching his head at Johnson’s forays into the negotiations. A classic happens at a high-stakes December 2020 dinner with @vonderleyen where Johnson seems to do a 180-degree turn on foreign policy cooperation: 3/
Here are some details on the offer #Britain turned down in the #Brexit trade talks: 1/
In March, the #EU included this proposal in a draft of the trade treaty published on its website: Page 354: ec.europa.eu/info/sites/inf…
The offer was fairly standard trade-deal fare. It essentially would have treated musicians and other travelling artists as tourists, allowing them to qualify for visa-waiver 2/
The @EU_Commission just added another initiative to its long list of existing projects aimed at boosting innovation from #Brussels. This time with an even more impenetrable than usual name: The European Bauhaus: 1/
Now, I must confess, when I think of Bauhaus, I think of this: 2/
But anyway, the #EU project is meant to "develop an innovative framework to support, facilitate and accelerate the green transformation by combining sustainability and aesthetics". 3/
The @EU_Commission has said in an explanatory doc that it needs more information from the #UK before taking "equivalence" decisions on financial services: ec.europa.eu/commission/pre… 2/
Reminder: the #UK has already sent back 2,500 pages of answers to #EU questionnaires.
#EU sources confirm that the wording of the explanatory document is a signal that further equivalence decisions will not come before the end of the year 3/
#EU's @MichelBarnier will appear before EU ambassadors by videolink Wednesday morning on a nerve-steadying mission as capitals fret about the compromises that could be made to get a deal with #UK 1/
Bunch of countries including France are increasingly jittery that the EU may give too much away to get a deal over the line. This follows recent EU concessions to facilitate trade in goods 2 /
French president @EmmanuelMacron warned today that France "will not accept an agreement that does not respect our long-term interests.”
The jittery group are countries such as France, Belgium, Netherlands that have closest trading relationships with UK & are fishing nations 3/