DUBLIN (Reuters) - The European Commission would like to see a strong convergence in the rules governing the EU’s and Britain’s financial markets after Brexit, the vice president of the executive Valdis Dombrovskis said on Wednesday.
“As we move on to define our future relationship, we should bear in mind that financial stability is best protected by coordinating rules and supervision – this is a lesson from the financial crisis,” he said in a speech in Dublin.
“Our financial markets may in the future be less integrated than today, but they will still have many ties. We are in favour of ensuring strong convergence of rules and supervision in the EU and the UK. We are enhancing EU rules on equivalence, which is an important tool under EU law to ensure such convergence.”
EU negotiators see no room for discussion with Britain on maintaining “passport” access to EU financial markets for its banks, diplomats in Brussels said earlier this week.
That would leave finance executives relying on what it known as equivalence, a legal mechanism that allows countries from outside the bloc to access the single market in limited circumstances.
Reporting by Padraic Halpin; editing by Andrew Roche