The most pathetic negotiation tactics from HMG. FS was THE prize asset. Yet they are now trying to negotiate from a position of total weakness with nothing to trade in exchange.
https://twitter.com/KeohaneDan/status/1345509931496206344
The EU will enter only into a non-binding MoU (as non binding as the Political Declaration which Johnson reneged on a few weeks after signing it). But it will retain its power over FS though it unilateral equivalence decisions. In exchange for a few concessions- agreement not to
withdraw equivalence without prior consultation - the UK will agree to consult with the EU on any proposed new regulation. Significant divergence will be impossible because of the implicit threat of withdrawal of equivalence by the EU.
Worse: this "negotiation" is taking place at a time when the EU has only granted 2 FS sectors the equivalence authorisation because it was in its interests.The UK could not be in a weaker position. It has virtually nothing to trade. Parliament approved the PCA, Johnson signed it.
The tactic of pretending to be ready for no deal backfired spectacularly. With its back to the wall Johnson had to agree a deal which left its most important piece check mate.
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