Yesterday Europe’s chief negotiator Michel Barnier has said that City firms will lose their financial passports when the UK leaves the EU. Speaking at a Centre for European Reform conference, Barnier was quoted "On financial services, UK voices suggest that Brexit does not mean Brexit. Brexit means Brexit. Everywhere.”
He added: "They say there will be no changes in market access for UK established firms, they say joint UK-EU rules would be decided in a new, symmetrical process between the EU and the UK and outside of the jurisdictions of the European Court of Justice."
Barnier then bluntly pointed out that "The legal consequence of Brexit is that the UK financial service providers lose their EU passport."
There have been several reports that Barnier could be bluffing in order to induce the UK to look at softening its stance to prevent negotiations from breaking down in December.
Talks on forming a coalition government in Germany have collapsed, leaving Angela Merkel facing her biggest challenge in 12 years as chancellor.
After almost five weeks of deliberations, the pro-business Free Democratic Party has pulled the plug on Chancellor Angela Merkel’s efforts to form a coalition government made up of her conservative CDU/CSU alliance, the Greens and the FDP. Migration was ultimately the most contentious issue, with politicians insisting disagreements over energy and climate policy were not the ultimate reason for the collapse.
President Frank-Walter Steinmeier said Germany was facing an unprecedented situation and that he would hold talks with all parties. He said this would include parties that not had been involved in the talks so far and called on politicians to work together and make compromises for the "well-being" of the country.
It appears that Germany will now go back to the ballot box, however there is no guarantee that Merkel will lead her party into a new election.
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