1/ This is no surprise - memories of the financial crisis are much fresher on the continent than in the UK. One diplomat recently told me it's 'simply not negotiable for Europe to allow a debilitating chunk of our economy to take place outside our regulatory reach'.
2/ However, if Britain is prepared to compromise on that regulatory reach (signing up to alignment and a strong dispute settlement system) there is scope and some calls within EU27 for a wider deal on financial services than in other EU FTAs like CETA.
3/ But then politics comes charging into the mix. Another diplomat said the bloc would have to charge a 'seriously substantial price' in return for financial services access otherwise some EU member states (not to mention Norway and co) would start wanting the same as the Brits.
4/ So on financial services there's a perfect storm of fresh eurozone scars, a legal minefield, national ambitions to pinch London's crown and keeping political unity. As one diplomat put it: 'General services for sure. Financial services, there’s a big question mark over that.'
