The Brexit divorce never fails to create headlines. With new demands from France and a 27-member meeting scheduled for the weekend, Brexit has become a complex mess. All parties associated with the dissolution of UK’s EU membership have their own concerns and demands. The chances of clashes are highly likely. We do not know how the EU will treat this disengagement as member countries have not met yet. However, it is likely that they do not want to give up on London, even if UK leaves.
Here are 3 things you need to know about Brexit right now:
EU Wants London Despite Brexit
France has clarified that even if UK leaves the Union, the financial centre of London should not be left behind. It wants London to be under the close scrutiny of Brussels. Giving up on the city of London could isolate the EU from the financial centre of the European region. London is an important part of Europe’s trade, with or without Brexit owing to banking and financial services. Hence, France has asked the EU to keep a close watch on the city even after Brexit. France also said that there are chances that trade deals will exclude financial services, against the wishes of May.
Financial Services of London
It is highly likely that trade deals will exclude financial services. EU officers have privately stated that Theresa May’s plans to include financial agreements in trade deals will be cut short. EU would want regulatory equivalence in London’s financial and banking ecosystem. This would make it likely that local watchdogs closely monitor the financial services located in London. This will help London based services to sell in the bloc with the help of a passport.
However, in this case, the rules and regulations for these services will have to match EU standards. If London loses its right to operate in the EU, close to 5,476 firms could be affected. All of them hold at least one passport for operations in EU members. On the other hand, more than 8,000 EU firms hold passport to operate in UK. These firms will also take a hit.
Per the EU stance, Brexit Britain will have to grant permanent residence to all EU citizens who arrive to the UK. All EU citizens who arrived in UK before the formal separation are eligible for permanent residency. A House of Lords amendment could have granted citizenship to 3 million citizens from the bloc. However, the MPs rejected the proposal last month. There could be clash between UK and EU over citizenship soon.
Formal negotiations begin on June 8 after elections in the UK. Before that, 27 member states of the EU will meet this weekend to discuss Article 50. They will decide whether it will be a soft or hard Brexit.