News

EU threatens UK companies in Brexit power grab – plot to steal business for Brussels bloc

Eurocrats are refusing to offer firms any wriggle room during the pandemic and demanding that they relocate to the Continent immediately. London-based TP ICAP yesterday said they were blocked for serving its EU clients because they hadn’t completed a planned relocation of staff to Paris. The firm was due to move 80 brokers from the UK to its new outpost in Paris last year before the end of the Brexit transition period.

But it was unable to do so because of coronavirus restrictions and finding schooling for its employees’ children.

The company said: “Due partly to the extraordinary circumstances relating to the COVID-19 pandemic, in particular relating to stay-at-home orders and travel restrictions currently in effect, it has not yet been possible to complete the relocation of staff to the EU27 or the local hiring of brokers in the EU-based offices of TPIE as quickly as originally planned.”

TP ICAP insisted it was still committed to making the moves at the “earliest opportunity” but a spokesman for the firm declined to comment on the exact details.

And the European Central Bank was pushing for the bloc to continue demanding that businesses move employees to mainland Europe.

ECB executive Frank Elderson told MEPs: “It is essential that we continue to push banks which have relocated to the euro area to allocate enough staff and assets to their new structures.”

The EU last year demanded that UK-based lenders move staff and assets to the Eurozone in order to keep serving the bloc’s clients after Brexit.

Brussels has been drawing up plans to bolster euro-based financial services businesses and end the bloc’s reliance on the City of London.

Financial services commissioner Mairead McGuinness last week insisted the realities of Brexit have “come home to roost” for Britain.

British and Brussels officials are expected to agree a framework for future financial services coordination by the end of March.

But Ms McGuinness has warned that Chancellor Rishi Sunak’s deregulatory ambitions for the City of London could stand in the way of a new UK-EU relationship.

The Chancellor hinted at a repeat of Margaret Thatcher’s “Big Bang” of financial services deregulation.

MUST READ: Brexit LIVE: Support for Leaving EU ‘will be at 90%’

She also claimed Brussels would not be forced into offering Britain special equivalence status to boost its access.

Equivalence refers to EU access when Brussels deems a non-EU country’s rules are as robust as the bloc’s.

“Once we agree on our working arrangements, we can turn to resuming our unilateral equivalence assessments… using the same criteria as with all third countries, including anti-money laundering and taxation cooperation,” she said.



Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button