We will use your email address only for sending you newsletters. Please see our Privacy Notice for details of your data protection rights.
The EU’s decision could create risks for the clearing house trade in euros on the London Stock Exchange. Clearing houses are a mediator between buyers and sellers during trade. But UK and EU lawmakers have disputed clearing houses as cities including Paris want to use Brexit as a tool to argue over London’s influence on financial markets.
The EU want the majority of the clearing for euros to be within the Eurozone.
EU leaders believe it should also be regulated by its own European Central Bank.
The London Stock Exchange clears 90 percent of euro interest rate exchanges at more than £150billion every day.
The EU’s threat comes after Boris Johnson revealed his plans to breach some of the Brexit Withdrawal Agreement.
Mr Johnson’s Internal Market Bill was backed by MPs on Monday, gaining 340 votes to 263 in the House of Commons in its first hurdle.
The bill would give the Government power to override parts of the Brexit Withdrawal Agreement with the EU.
Ministers and critics have warned of the risks that may arise if the UK breaches international law.
Former Chancellor Sajid Javid said he could not support the final bill unless it was amended.
Sir Roger Gale Conservative MP for North Thanet, Kent, told BBC that he voted against the bill in the Commons as a “matter of principle” to maintain international law.
He added: “I think that this is damaging our international reputation for honest and straight-dealing at a time when we are about to embark on a series of trade negotiations.
“I took a view that you fight this tooth and nail at every step.”
The EU offered Britain a “time-limited” access to euro clearing from January to fend off any major disruptions.
EU Parliament VP sends Twitter into meltdown after furious rant [UPDATE]
SNP could force through Brexit laws at Holyrood after losing Brexit [ANALYSIS]
Boris Johnson urged to ditch his ‘wholly wretched’ Brexit deal [INSIGHT]
But it has delayed its decision on whether to extend the access.
The outcome is now expected to come near the end of next month instead of this week.
The EU’s decision to wait has angered some Brexiteers.
Andrew Bridgen, Conservative MP for North West Leicestershire, told the BBC the EU move makes him question why the UK attempted a deal in the first place.
He said: “Given that the EU breaches the withdrawal agreement by not negotiating in good faith and threatening to ban UK food exports to Northern Ireland, this latest response makes we wonder why we’re even trying to do a deal with these people. They clearly don’t want to do a trade deal.”
The decision over the clearing houses has been a continuing battle during Brexit negotiations.
An expert warned delaying the decision creates ambiguity for the EU and UK.
Allie Renison, head of trade policy at the Institute of Directors, said: “The euro clearing decision has been a sore point in negotiations.
“Delaying the decision spells uncertainty for firms on both sides of the Channel.
“Business leaders want to see the talks stay constructive and will be concerned that time is running out.”
Source: Read Full Article