Britain concerned on Brexit’s impact over its financial sector

Can the EU risk giving Britain a unique deal of restricted immigration and unrestricted access to its single market? The exception could become the rule.

According to Britain’s minister who is charged with negotiating Brexit, the country is pushing for a “unique” deal with the European Union while trying to restrict immigration, restore its sovereignty, while boosting its trade ties with the bloc.

Britain under Prime Minister Theresa May, has so far given little details as to what it wants when it leaves the European Union. So far, it has only said it was focusing on preparing its negotiation stance before it triggers divorce proceedings.

Having rejected a “points based” system for immigration, David Davis, Britain’s Brexit minister has tried to ensure concerns in his party related to the flow of migrants, a key issue for most Brexit voters.

He has clarified that cutting the flow of emigrants does not necessarily mean that Britain would have to give up access to EU’s lucrative single market.

This essentially is the crux of the matter.

“As the prime minister has made clear, there will be no attempt to stay in the EU by the back door,” said Davis while ruling out any suggestion of a second referendum.

He went on to add, “It means getting the best deal for Britain – one that is unique to Britain and not an ‘off the shelf’ solution. This must mean controls on the numbers of people who come to Britain from Europe – but also a positive outcome for those who wish to trade in goods and services.”

However EU officials have made it crystal clear to Britain that if it wants its lucrative single market it must accept the four basic principles of the bloc – including freedom of movement of migrants.

With the governing party not providing sufficient clarity on the matter, a number of the ruling Conservative Party members have criticized the government saying an “optimistic tone” isn’t enough, it needs to provide Britons a picture as to what Brexit would look like.

“We are none the wiser about the government’s plans after David Davis’s statement. An optimistic tone is not enough and the phrase ‘Brexit means Brexit’ has surely passed its shelf life,” said Anna Soubry, who voted to remain in the EU.

“It’s time for some detail.”

Does the bloc need a trade deal with Britain?

Although Davis has stated in parliament that Britain could implement immigration control while still maintain its access to EU’s single market, since it is not in Brussel’s interest to hurt trade.

“Neither do I think that it is a simple trade-off that an immigration control system which suits our country is necessarily one that will preclude a good trade relationship with the European Union,” said Davis.

“Trade relationships are beneficial to both sides.”

He has stated that the government was taking stock of the situation and was assessing its position by talking to businesses big and small. It is particularly worried about Brexit’s impact on its financial sector.

In what could be termed as a posturing aimed at appeasing the domestic market, Davis said, “We will trigger Article 50 as soon as is reasonably possible. I would rather be a month late and get it right than be a month early and get it wrong.”



Categories: Economy & Finance, Geopolitics, Regulations & Legal, Strategy

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