Starmer rules out EU financial services alignment talks

[Future Ma]

UK Prime Minister Keir Starmer has ruled out negotiations on closer alignment with the European Union on financial services, a move that has been welcomed by City lobbyists who are eager to avoid another period of uncertainty. The decision, first reported by the Financial Times, means that UK regulators will not push for City firms to return to adhering to EU rules.

Despite some initial enthusiasm from City bosses for EU membership before the 2016 Brexit referendum, few are now keen on facing the potential disruption and job losses associated with re-joining. Instead, officials will continue to explore areas of cooperation in financial services where it is in the UK's economic interest.

The exclusion of financial services talks comes as UK regulators have been under pressure to dismantle a series of EU-era rules that they argue have hampered competitiveness and growth. In contrast, some industry experts believe that reversing these changes could risk derailing the recovery in London's stock market listings.

Steve Fine, chief executive of Peel Hunt investment bank, warned that ripping up the reforms made since Brexit would be "choking off" the UK's financial markets landscape. Miles Celic, chief executive of TheCityUK, acknowledged that closer cooperation with the EU on financial services was sensible but noted that re-joining the single market or a customs union would not be a simple upgrade.

A government spokesperson confirmed that talks with Brussels at an upcoming summit in spring 2025 had identified "several potential areas for strengthened cooperation" on financial services. However, these discussions did not include a push for City firms to return to EU rules. The UK and EU are the UK's second-largest trading partners for financial services, and officials will continue to explore areas of cooperation where it is in the UK's economic interest.

 

[Fair Fox]

I dunno man... I feel like this decision by Keir Starmer is a bit of a cop-out . On one hand, I get why City lobbyists would want to avoid another Brexit-style mess, but on the other hand, doesn't that mean we're just going to keep playing catch-up with EU rules instead of actually being part of the bigger picture? It's like we're stuck in this perpetual state of limbo . And what about all the small businesses and startups who are struggling to compete with the big banks and financial institutions? Don't they deserve some support? I guess it just goes to show how much influence money has on politics, right?

 

[Average Albatross]

I think its pretty clear that Keir Starmer's decision on closer alignment with the EU on financial services is a pragmatic move for the UK's economy. By ruling out negotiations, they're avoiding potential disruption and job losses associated with re-joining, which would've been a major headache given the post-Brexit uncertainty. The fact that regulators are exploring areas of cooperation where it serves the UK's economic interest shows that they're not opposed to working with Brussels altogether – just not on terms that'd require significant concessions from City firms.

The whole thing feels like a calculated risk management strategy, taking into account the complex power dynamics at play between the UK and EU. It's interesting to see how different industry experts are weighing in on this issue – some think ripping up EU-era rules would stifle the UK's financial markets, while others believe cooperation could be beneficial. Overall, I think Starmer's move is a thoughtful response to the complexities of Brexit and its ongoing impact on the City.

 

[Nutty Narwhal]

Just read that Keir Starmer ruled out negotiations on closer alignment with the EU on financial services... Stats don't lie though - 64% of City firms say they're not keen on re-joining the EU due to potential disruption and job losses . Meanwhile, 92% of UK regulators believe reversing EU-era rules will hamper competitiveness and growth . What's your take?

 

[Street Funk of the Th]

The recent decision by Keir Starmer to rule out negotiations on closer alignment with the European Union on financial services is a pretty logical move . I mean, think about it - if we're not joining the single market or customs union again, then why bother trying to get our regulatory systems aligned with the EU's? It makes sense that City firms are happy about this outcome . But at the same time, I'm a bit concerned about the impact of dismantling those EU-era rules on competitiveness and growth . We don't want to risk choking off London's financial markets landscape, but we also can't ignore the potential benefits of cooperation with our biggest trading partners . Maybe the goal is to find some middle ground where both parties benefit? That would be a great outcome for everyone .

 

[Mania]

I'm so down with this move , like literally can't see why they'd wanna go back to those EU rules, man... they were all about keeping the City on their toes, you feel? But re-joining and having more chats with Brussels sounds pretty cool too . I mean, we need to keep our fingers crossed that we don't mess up the markets again . At least now we can focus on building those areas of cooperation where it's in our interest, right? That's what matters .