U.K. Banks to Lose EU Access After Brexit, Merkel Ally Says
- EU passporting rules ‘not negotiable,’ CDU lawmaker says
- Negotiating new framework won’t be easy game, Fuchs says
EU Disharmony Behind Merkel, Renzi, Hollande Unity
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The European Union won’t bend its rules to preserve access for the City of London once Britain leaves the bloc, according to German lawmaker Michael Fuchs, an ally of Chancellor Angela Merkel.
The legal and regulatory framework for so-called passporting is geared to banks based in an EU country, and negotiating any new arrangement promises to be “very difficult,” Fuchs said in a Bloomberg interview on Tuesday. Passporting rules, which allow a bank incorporated in any EU member state to sell its products and services throughout the $19 trillion integrated economy, are “not negotiable,” he said.