POLITICO: Brexit’s latest twist: Britain pushes the EU to increase red tape
21 February 2024
The City of London was supposed to have been set free by Britain’s departure from the EU. That’s not how it’s turning out.
LONDON — Brexit? What Brexit?
In a reversal of the roles they've been used to playing, Britain is demanding the EU toughen up rules, worried about the threat of another financial crisis.
It's the ultimate irony. Britain's departure from the bloc was supposed to mean breaking loose from Europe's shackles and ushering in an era of light-touch regulation for the City of London.
But three years on, it’s British authorities who are lobbying the EU to impose stronger safeguards on a wobbly part of financial markets — whereas Brussels technocrats aren’t so sure.
Top U.K. officials from the Treasury, Bank of England and Financial Conduct Authority will raise concerns about the EU’s lax approach during a charm offensive this week in Belgium.
“There are different feelings on how fast things can move,” said one U.K. official, granted anonymity to speak freely because discussions between the two sides are confidential. “There is more impetus on the British side to move and move quickly lest something go wrong.”
It's a problem for British watchdogs, including the Bank of England, because they're powerless to address a vulnerability in the U.K.’s financial system without EU action, since the risks are stashed in Dublin and Luxembourg.
Now’s the chance to ram the message home. U.K. authorities will host a reception in Brussels and send senior staff to a twice-yearly schmoozing event with the financial industry — known as Eurofi — in Ghent this week, as they try to win over their EU counterparts....
