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06 February 2020

Brexit Weekly


The UK leaves the EU, European and British financial institutions reassure firms about their readiness to absorb the impact of Brexit, Boris Johnson signals the hardest Brexit possible if Brussels insists on tying the UK closely to its standards and more.

 

Our new e-mail service now provides direct access to the underlying articles - with links that are live for the next seven days. If you wish to acces older articles, you will need access codes from office@grahambishop.com. I had hoped that there would be no need to continue this service but, sadly, that is not the case as the negotiations will drag on for a long time. So we will soon be introducing a small monthly charge - unless you are subscribing to our Gold service.

If you are interested in European finance, we are targeting the interaction of the driving forces of politics and economics as they force the required changes in over-arching financial regulation - including ESG and Fin Tech. Details of these services are here

Articles from 30 January 2020 - 6 February 2020
 
Michel, Sassoli and Von der Leyen 
"A new dawn for Europe" - Op-ed article by Presidents Charles Michel, David Sassoli and Ursula von der Leyen : As the night draws in this evening, the sun will set on more than 45 years of the United Kingdom’s membership of the EU. For us, as Presidents of the three main EU institutions, today will inevitably be a day of reflection and mixed emotions – as it will for so many people, write EU presidents. View Article
FCA: Information for firms during the Brexit implementation period : During the implementation period, which is due to last until 31 December 2020, EU law will continue to apply. Firms and funds will continue to benefit from passporting between the UK and EEA. Consumer rights and protections derived from EU law will also remain in place. View Article
Remarks by President Charles Michel on the future of Europe : European Council President marked Brexit day saying the EU is "opening a new chapter" and Europeans "will devote all our energy to building a stronger and more ambitious European Union." View Article
Brexit: Council adopts decision to conclude the withdrawal agreement : The Council has adopted, by written procedure, the decision on the conclusion of the withdrawal agreement on behalf of the EU. This follows the European Parliament's vote of consent on 29 January and the signature of the withdrawal agreement by the EU and the United Kingdom on 24 January. View Article
ECB welcomes ratification of agreement on orderly UK withdrawal from European Union : In recent months and years, the ECB has taken steps to prepare for all contingencies and it will continue to closely monitor developments in financial markets to preserve stability. The ECB stresses that banks now need to press ahead with the implementation of their Brexit plans in accordance with agreed timelines. View Article
Boris Johnson - The Guardian
Financial Times: Boris Johnson ready to spurn EU trade deal over rule-setting : Boris Johnson said he was prepared to sever links with the EU without a trade deal if Brussels insisted on tying the UK closely to its standards, in spite of the government’s own estimates that it could inflict long-term damage on the economy. View Article
POLITICO: EU trade chief: ‘Australia-style’ Brexit agreement means no deal : UK Prime Minister Boris Johnson could still end up without a trade agreement if he pursues an "Australia-style" deal with the EU because such a deal does not exist, European Commissioner for Trade Phil Hogan said. View Article
The Guardian: Johnson to impose full customs checks on goods from EU – report : Boris Johnson intends to impose full customs checks on all goods coming into the UK from the EU in a break with previous government policy, according to reports. View Article
BBC: Brexit: Britain 'will not be aligning with EU rules' - Raab : Britain will "not be aligning with EU rules" in any post-Brexit trade deal, the foreign secretary has said. View Article
The Guardian: UK will not be pushover in Brexit talks with EU, says Michael Gove : Michael Gove has laid down the gauntlet to EU negotiators signalling the UK government’s intent not to concede ground in talks to secure a trade deal with the EU by the end of the year. View Article
UK in a Changing Europe: Government faces a number of tough choices in next stage of Brexit, new academic report finds : The government faces several challenges after Brexit, including the negotiation of a new trade deal with the EU, devising and implementing a whole raft of new policies, reshaping the economy and holding the Union together, a new report by academic think tank The UK in a Changing Europe finds. View Article
Financial Times: The UK is about to shoot itself in both feet : Britain’s demands for its negotiations with the EU are unrealistic, writes Martin Wolf. View Article
Bruegel: Britain faces a triple contradiction : If Boris Johnson can negotiate agreements that are better than the EU system, it would be a serious challenge for the 27, warns Jean Pisani-Ferri. View Article
EurActiv: MPs call for an Anglo-German post-Brexit ‘friendship treaty’ : A British MP and his German counterpart have called for a post-Brexit “treaty of friendship” between the two countries, as concerns grow in Berlin that relations could turn increasingly hostile over the coming months. View Article
EurActiv: UK to diverge from EU data protection rules, Johnson confirms : The United Kingdom will seek to diverge from EU data protection rules and establish their own ‘sovereign’ controls in the field, the UK Prime Minister Boris Johnson said. His comments came despite the EU affirming that the UK should “fully respect EU data protection rules.” View Article
Paul Goldschmidt: The “Brexit” tree hides the forest of the challenges of globalization! : The historical event of the formal departure of the UK from the EU is emblematic in our “connected” planet. It is therefore crucial that both parties consider how their respective negotiating mandates can be integrated within the much broader frameworks of European integration and globalization. View Article
POLITICO: How Britain rejoins the EU — in a decade’s time : Launching a campaign now would turn pro-EU voices into the mad old bores in the back of the pub. But if they hang back and adopt a more realistic timetable, they have every chance of leading a successful campaign to rejoin the bloc within the next decade, writes Ian Dunt. View Article
Joint Communiqué - UK grassroots groups -Where Now for Remain? conference : Representatives of more than 150 grassroots groups met on 25 January 2020 in Central Hall, Westminster, London, to discuss the future of the pro-European movement in the UK, and have issued the following statement. View Article
BBC: 'Empathy' for independent Scotland joining the EU says Tusk : Former European Council president Donald Tusk says Brussels feels "empathy" towards an independent Scotland joining the European Union. View Article
The Guardian: Scottish independence surveys 'show Brexit has put union at risk' : One of the UK’s leading pollsters has warned that Brexit has put the union at risk after another survey showed a narrow lead for Scottish independence. View Article
Financial Times: The challenges facing UK-US trade talks : The optimistic statements over a speedy US-UK trade deal mask concerns that disagreements between London and Washington in areas ranging from trade itself to security are clouding the launch of the negotiations. View Article
The Independent: Trump will put US first in trade negotiations with Boris Johnson, ambassador warns : Donald Trump will put the interests of US farmers and pharmaceutical companies first in any post-Brexit trade negotiations with the UK, Britain’s former ambassador to Washington has warned. View Article
Reuters: London's financial district sees few signs of Brexodus : The City of London financial district said job relocations to the European Union on Day One of Brexit remained far short of the hundreds of thousands predicted when Britain voted to leave the bloc over three years ago. View Article
Financial Times: Japan’s biggest law firm chases post-Brexit deal boom in EU : Nishimura & Asahi has become the first of Japan’s “big four” law firms to set up offices in Europe, choosing Frankfurt over London as Japanese companies reorganise to cope with Brexit and prepare for an expected boom in dealmaking in the EU.  View Article
EurActiv: Paris aims to become Europe’s top financial hub in post-Brexit world : London is currently Europe’s leading financial centre but the French authorities dream of seeing Paris in the lead. However, it remains to be seen if the City will lose access to European markets after the UK-EU negotiations this year. View Article
POLITICO: EU bank rides out Brexit impact ‘surprisingly well’, says EIB chief : Economic uncertainty caused by the United Kingdom’s imminent departure from the EU did not prevent the EIB from having a record-breaking year in 2019, according to the bank’s president. View Article
ECB’s subscribed capital to remain steady after Bank of England leaves the European System of Central Banks : The European Central Bank will keep its subscribed capital steady at €10.8 billion after the Bank of England leaves the European System of Central Banks.  View Article
ESMA: update on governance and reporting obligations following the UK’s withdrawal from the European Union : ESMA is publishing this statement to clarify issues relating to its governance and the reporting obligations for UK entities from 1 February 2020 following the United Kingdom’s withdrawal from the European Union. View Article
EBF: Brexit: Statement on UK departure from the EU : The departure has been made possible by last week’s approval of the Withdrawal Agreement by both the Houses of Parliament in the UK and yesterday’s vote of the European Parliament in plenary session. This paves the way for an orderly Brexit on Friday 31 January 2020, as advocated by the EBF since the beginning of the withdrawal process. View Article
EPC’s follow up on Brexit after ratification of the Withdrawal Agreement : The European Payments Council shed some light on the status of UK Payment Service Providers’ (PSPs) participation in the SEPA Payment Schemes and of SEPA Credit Transfer (SCT) / SEPA Direct Debit (SDD) transactions involving UK PSPs as from 1 February 2020. View Article
Commercial Risk Europe: Insurers and customers protected from full Brexit impact during transition: AM Best : The UK’s exit from the European Union tomorrow will have little immediate impact on rated insurers in the country and across Europe, with the longer-term impact only becoming clear during future trade negotiations and decisions about equivalence, said AM Best. View Article
The Independent: Boris Johnson accused of failing to protect small businesses as one third say they are ready to leave UK : Small business leaders have accused Boris Johnson of failing to protect them from the damage Brexit will inflict – with one third ready to quit the UK to escape it. View Article
The Guardian: Brexit trade talks: EU to back Spain over Gibraltar claims : The EU will back Spain over its territorial claims to Gibraltar in the next phase of Brexit negotiations by giving Madrid the power to exclude the British overseas territory from any trade deal struck with Brussels. View Article
 
Graham Bishop #FBPE retweeted
The Guardian The Guardian
@guardian
Scottish independence survey 'shows Brexit has put union at risk' theguardian.com/uk-news/2020/f…
 
Graham Bishop #FBPE retweeted
European Commission ???? European Commission ????
@EU_Commission
It’s time now to start looking forward. The interests of the EU, of each and every EU country, and of all our citizens come first. @MichelBarnier on draft negotiating directives for the future relationship negotiations with the UK #NewBeginnings ???????? pscp.tv/w/1zqJVlmBMwLKB
 
Graham Bishop #FBPE retweeted
EURACTIV Politics EURACTIV Politics
@eaPolitics
UK to diverge from EU data protection rules, Johnson confirms bit.ly/36YXTD0
 
Graham Bishop #FBPE retweeted
Bloomberg Brexit Bloomberg Brexit
@Brexit
???? Free trade is possible, but with conditions ???? Whatever the outcome, the U.K. will "prosper mightily" Boris Johnson and Michel Barnier clash over who sets the rules for post-Brexit trade trib.al/tUPP1ty pic.twitter.com/7WpisWfgiZ
 
Graham Bishop #FBPE retweeted
<a href=FT Brussels" src="https://pbs.twimg.com/profile_images/931157406360449024/uendSDG1_normal.jpg" /> FT Brussels
@ftbrussels
Boris Johnson to reject regulatory alignment in EU trade talks on.ft.com/2RPtouT
 
Graham Bishop #FBPE retweeted
The Guardian The Guardian
@guardian
Tusk: EU would be enthusiastic if Scotland applied to rejoin theguardian.com/politics/2020/…
 
Graham Bishop #FBPE retweeted
Charles Michel Charles Michel
@eucopresident
Tomorrow will mark a new dawn for Europe. We have a common vision of where we want to go and a commitment to be ambitious on the defining issues of our times. But we know we can only do it together. My letter with @vonderleyen and @EP_President: europa.eu/!gK99QQ pic.twitter.com/iNgcEgDWVW
 
Graham Bishop #FBPE retweeted
The Economist The Economist
@TheEconomist
Britain's future is full of uncertainty. Boris Johnson must now look to liberalism and build a system open to all comers econ.st/38VfL2X
 
Graham Bishop #FBPE retweeted
Daniel Ferrie Daniel Ferrie
@DanielFerrie
The @EUCouncil adopted today the decision to conclude the Withdrawal Agreement. The #UK will leave the EU tomorrow at midnight - WITH a deal. "In this new beginning, I would really and sincerely like to wish the UK well." @MichelBarnier @Europarl_EN: europa.eu/!xg96CB pic.twitter.com/mZKwWbYdmY
 
Graham Bishop #FBPE retweeted
Bloomberg Brexit Bloomberg Brexit
@Brexit
London’s fight to remain a global financial hub rests on a once-obscure process controlled by politicians in Europe trib.al/Cgoo2ZW
 

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