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Brexit & Third-Country Arrangements

 

Brexit & Third-Country Arrangements

Context

The Brexit timetable is now more clearly set out following the vote of the Brexit agreement in January 2020, opening a transition period until the end of 2020, unless an extension is needed due to the Covid-19 crisis. The terms of a potential EU-UK trade deal following this are still to be defined, however any agreement would be mainly focused on goods.

Regarding the financial sector, equivalence arrangements will most likely be the basis for future EU-UK relations. Following concerns expressed by the UK and some other third-countries about the insufficient predictability of these arrangements and their alleged politicization, the Commission made proposals in July 2019 for improving equivalence processes notably in terms of transparency.

Some UK stakeholders have since reiterated requests for more “structured” processes for the withdrawal of equivalence and a more principles-based approach, which have so far been rejected by the EU. Timing is another issue. Given the current identity of UK and EU rules, the UK has urged the EU to conclude equivalence assessments by June 2020, in line with the objective mentioned in the Brexit deal, but the Commission has warned that its decisions would be guided by how far Britain wants to deviate from EU rules.

Contributions to the policy debate

Extracted from the main Eurofi publications (Regulatory Updates, Views Magazines and Conference Summaries)