France blocks financial equivalence agreement

France blocks financial equivalence agreement

The French say they will veto an EU-UK agreement on equivalence unless their fishermen are given access to British waters. Meanwhile Bank of England Governor Andrew Bailey has accused the EU of trying to use equivalence to turn the UK into its regulatory satellite.

Clement Beaune, the French minister for European Affairs, has warned that the EU will retaliate if the UK does not ‘deliver licences and authorisation to access their waters for fishing. That’s the deal.’

The EU and UK had agreed to set up a joint regulatory forum to facilitate dialogue on financial services issues. The memorandum of understanding, agreed in principle in March between the EU and UK, was regarded as a stepping stone for UK financial services firms to gain access to the EU via equivalence.

To read more on this story see the May issue of The NED.