UK and non-EU financial services trade will grow

Significance

According to the Commission, the decision was made solely on the basis of giving the EU more time to strengthen the attractiveness of EU-based clearers. With the Commission against granting a further extension after the three years, the United Kingdom will face more restrictions regarding financial services trade with the EU.

Impacts

• The impact of Brexit on EU-UK services trade will become more apparent this year with the removal of COVID-19 restrictions.
• Strengthening the competitiveness and resilience of the EU’s post-Brexit financial system will be a key priority for the Commission.
• While the strength of other EU financial centres will grow, London has an infrastructure that is difficult to replicate.