Brexit talks must be quick, City of London at risk of losing ‘EU passport’

By: | Updated: June 25, 2016 3:07 PM

Many banks based in London rely on a so-called EU "passport" that allows them to operate across the bloc's capital market unhindered.

Brexit, Brexit News, Brexit Latest, Brexit Polls, Brexit Vote, Brexit Referendum, European Union, European Referendum, european union passportMany banks based in London rely on a so-called EU “passport” that allows them to operate across the bloc’s capital market unhindered. (Reuters)

Brexit talks must be carried out quickly to limit uncertainties, ECB Governing Council member Francois Villeroy de Galhau said on Saturday, adding the City of London financial centre was at risk of losing its prized “EU passport”.

Many banks based in London rely on a so-called EU “passport” that allows them to operate across the bloc’s capital market unhindered.

Also Read: Frankfurt or bust? Wall St bankers in London ponder life post Brexit

The City of London will not be able to keep that passport if Britain leaves the EU’s single market of trade in goods and services, Villeroy de Galhau told France Inter radio.

“There is a precedent, it is the Norwegian model of European Economic Area, that would allow Britain to keep access to the single market but by committing to implement all EU rules,” he said.

“It would be a bit paradoxical to leave the EU and apply all EU rules but that is one solution if Britain wants to keep access to the single market.”

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