UK given just a few weeks to come up with Brexit divorce deal or face the consequences
EU and British negotiators meet for sixth round of Brexit talks in Brussels.
The European Commission has given the United Kingdom just a few weeks to come up with how much it is prepared to pay in the Brexit divorce settlement.
Brussels has warned that unless they can agree on leave terms within the next two or three weeks then there won’t be a transition deal put in place this year.
Economists have stated that a transition agreement is needed before a Brexit summit in December, otherwise negotiations will continue well into 2018 and cause further damage to Britain’s finance sector.
“We need to know soon,” one senior EU negotiator told the Financial Times. “There isn’t much time, there are no shortcuts.”
The news comes as EU and British negotiators meet for the sixth round of Brexit talks in Brussels to thrash out a deal.
Government insiders have stated that they want talks on transition to start immediately so that the Brexit process can begin as soon as possible.
Recently, Catherine McGuinness, chair of the policy and resources committee at the City of London Corporation, warned the government that posturing over the UK’s departure from Europe is causing major problems in the capital.
McGuinness said that speeding up transition deal negotiations will prevent the financial sector from facing a “cliff-edge” when the UK leaves the EU in March 2019. She said a quick deal might be better than a perfect deal.
The Bank of England believes that Brexit could force 75,000 financial services jobs out of the United Kingdom. Economists claim that the only way to avert the crisis is if negotiators can secure a strong post-Brexit trading deal, but even if this scenario can be achieved the Bank still believes a significant number of jobs will be lost.
We also reported recently how Brexit was proving a nightmare for British regulators who must cater for thousands of overseas financial services groups needing licenses to operate in the United Kingdom. In return, the UK’s Financial Conduct Authority has said that Brexit should not end firms’ access to the European Union.