In March 2021, Brussels and London reached a memorandum of understanding that was not signed, after a crisis in relations between the two sides, against the backdrop of amending trade rules in Northern Ireland, but this file was resolved after the European Union and Britain officially adopted in March another trade agreement for the post-war period. Brexit, dubbed the “Windsor Framework”.
London is a global financial center of gravity, and it was looking forward to an agreement in the field of financial services, for the European Commission, the executive arm of the European Union, to take the first step, on Wednesday, by approving a draft agreement that must be ratified by the 27 member states.
Member states can endorse the agreement at a meeting of their finance ministers scheduled for June.
But the Commission indicated that the agreement does not address the issue of access for UK-based companies to the single market and vice versa.
The final ratification of the text will be favorable to Britain, as this would show that the United Kingdom is moving in the right direction with its largest trading partner after “Brexit” and the disputes that followed it.
After being signed by Brussels and London, the agreement would form a framework for voluntary regulatory cooperation in financial services between the EU and the UK.
This would include a joint EU-UK financial regulatory forum that would enable regulators on both sides to discuss issues related to financial services.
“The Windsor Framework allowed the EU and the UK to open a new chapter in our relations, built on a spirit of mutual trust and cooperation,” said a statement from the EU’s Commissioner for Financial Services, Mered McGuinness.
“I am confident that our relationship and future engagement in financial services will be built on a shared commitment to safeguarding financial stability, market integrity and protecting consumers and investors,” McGuinness added.
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