MEPs on the European Parliament’s Committee on Economic and Monetary Affairs (ECON) held talks with the European Commission, on Wednesday 19 July, regarding the Memorandum of Understanding establishing a framework for financial services regulatory cooperation between the EU and the UK (see EUROPE 13210/3).
Although welcomed, the cooperation forum between the European Union and the United Kingdom - provided for in the protocol signed on 27 June - largely occupied the discussions initiated by the MEPs who took the floor.
For Danuta Hübner (EPP, Polish), the forum should focus on the reforms that should be envisaged on both sides of the Channel. “We can’t contemplate being in disagreement; there are risks, we should be focused on what needs to be done; these are not easy times for the sector”, she said.
However, the legal format of the forum, described by the European Commission as “a non-binding instrument of the EU Council”, could limit the power to take regulatory action. “The idea is to have a forum where regulators can keep abreast of new developments in mutual regulation. There is no question of co-decision”, she added.
For other members of the European Parliament, attention should also be focused on the legislative work underway in the UK. “We cannot rebuild the pre-Brexit financial services alignment. There will be divergences. What are the Commission’s expectations? Can we imagine a move towards market deregulation in the UK?”, asked Pedro Silva Pereira (S&D, Portuguese).
“The current UK government has made it clear that there will be no deregulation. They focus on market competitiveness and London’s role as a financial centre. For the moment, there have been no concrete changes. More modifications are expected over the coming months, and we will be keeping a close eye on them”, summarised the Commission. (Original version in French by Thomas Mangin)