[...]“Norway Plus” is a Brexit model that combines a customs union, with the UK remaining in the European Economic Area by becoming a member of the European Free Trade Association.
Norway Plus could, if the prime minister loses the Brexit vote next week, be the only deal that commands a majority in the House of Commons. In that scenario it is a deal that I would support
What would a Norway-style Brexit mean for the future regulation of financial services? The UK would be a “rule-shaper”, through being given a voice, a vote and an ability to refuse to implement future regulations.
And, with continuing access to the EEA and the financial services passporting arrangements that have enabled London to become the world’s leading international financial centre, companies could continue to service clients as they do now.
It would also avoid debates over which UK regulations can or cannot be deemed equivalent with EU regulations and vice versa.
First, we would have a genuine voice over future financial regulations. The UK as an EEA/EFTA member would have considerable influence over the nature of new EEA rules, by continuing to lobby as we do now.
The EU is obliged to consult all EEA/EFTA states on any new legislation or rules. As an EEA/EFTA state, but outside the EU, the UK would have the power to participate in the EU’s policy-shaping committees as well as having observer status in the EU’s various legislative chambers.
Second, we would have a genuine vote over future financial regulations. This would occur through the EEA Joint Committee, in which representatives from the EU and EEA/EFTA members (Norway, Iceland and Liechtenstein) meet to decide on whether to ratify any proposed new EEA law.
Unlike in the EU Council, where voting is on the basis of a qualified majority, new EEA law is only incorporated into the EEA Agreement with the unanimous agreement of the EU and the EEA/EFTA states. This way of working would result in genuine influence for the UK.
Third, the UK parliament would have to vote into British law any new EEA law. This is because the ability of the EU to impose law on the UK would end under a Norway-style Brexit; EEA/EFTA states maintain (and have used) a domestic power to refuse. [...]
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