LONDON (Reuters) – Britain on Sunday downplayed the risk of the European Union taking business out of London after Brexit, saying the real challenges come from New York, Tokyo and elsewhere.
The UK completed its exit from the EU at the end of 2020, but the last-minute free trade agreement that replaced the bloc’s membership did not include arrangements for the free trade of financial services – the engine of the UK economy.
Data released on Thursday showed that Amsterdam moved London as the largest stock trading center in Europe after the UK left the EU’s single market and took over part of the UK derivatives business.
“If we are really honest about this, the challenge for London as a global financial center around the world will come from Tokyo, New York and other areas, rather than from those European hubs, especially if they start to build barriers. in the way of trade and investment, “Foreign Minister Dominic Raab told the BBC.
The UK has not yet been granted equivalence in terms of regulating financial services, which would free up trade, as the EU says it needs information on Britain’s intentions to deviate from EU rules. The UK says it has provided all the necessary documents.
Raab said the EU risks undermining its own competitiveness by putting up barriers to “get some business out of the city here and there”.
The EU authorities have previously made it clear that they want financial activity in euros to be transferred from London to build its own capital market under the direct supervision of Brussels.
Reporting by William James; Edited by Gareth Jones and Barbara Lewis