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BANKS TO 'CARRY ON'

Brussels to let Brit banks keep EU business even if there’s a No Deal Brexit

BRUSSELS has admitted it will allow British banks to keep carrying out major EU business even if there’s no Brexit deal.

Top eurocrat Valdis Dombrovskis said he will stitch together an emergency pact with the UK to keep the financial services trade stable.

 The Latvian politician encourages pacts with the UK to maintain financial stability in the continent
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The Latvian politician encourages pacts with the UK to maintain financial stability in the continentCredit: EPA

The Latvian, who is in charge of the bloc’s financial stability, made the remarks amid warnings a UK crash out could cause a eurozone meltdown.

Last month, a banking boss warned a no deal Brexit presented “an immediate and significant threat to financial stability” in the EU.

Catherine McGuinness, the Policy Chairman at the City of London Corporation, urged Brussels to “reciprocate” British efforts to minimise disruption.

Britain’s banks are a vital source of funding for the continent and service the vast majority of the lucrative clearing trade in euros.

 Catherine McGuinness encouraged the European Parliament to reciprocate Britain's intention to reduce financial disruption
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Catherine McGuinness encouraged the European Parliament to reciprocate Britain's intention to reduce financial disruptionCredit: AFP

Mr Dombrovskis said stop gap measures would mean UK companies could still service the bloc’s multi-trillion pound derivatives markets after March 29.

He told the Financial Times he “address financial stability risks arising from an exit without a deal”.

But he stressed that any sticking plaster would be applied “under strict conditionality and with limited duration”.

The PM has previously urged Brussels to consider a series of mini deals to address potential disruption arising from a no deal Brexit.

 Theresa May has previously urged Brussels to arrange mini deals to avoid potential collapse after Brexit
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Theresa May has previously urged Brussels to arrange mini deals to avoid potential collapse after Brexit

 

But eurocrats have up until now dismissed her calls over fears that public planning would encourage hardline eurosceptic MPs pushing for a crash out.

EU bosses have warned that the UK’s banks will lose much of their access to the Single Market, including key “passporting rights”, after we leave.

Theresa May vows to ‘hold her nerve’ as she unveils four-point Brexit plan in the House of Commons


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