The UK government has today published a white paper on the future relationship with the European Union after Brexit.

We’ve published our White Paper. Setting out how we will secure the best #DealForBritain

? https://t.co/lswqH1zcgw pic.twitter.com/h9CBO4kzpM

— Exiting the EU Dept (@DExEUgov) July 12, 2018

Catherine McGuinness policy chairman of the City of London Corporation, said:

My full response to Government's #Brexit white paper here: https://t.co/ikmdOO3Sqi

— Catherine McGuinness (@City_McGuinness) July 12, 2018

“Today’s Brexit white paper is a real blow for the UK’s financial and related professional services sector. With looser trade ties to Europe, the financial and related professional services sector will be less able to create jobs, generate tax and support growth across the wider economy. It’s that simple.

The sector has been clear since the referendum: Equivalence in its current form is not fit for purpose so any “enhancements” to this regime would have to be substantial.

As the EU’s gateway to capital, the UK is a significant trading partner for the bloc. It’s in the interests of households and businesses on both sides of the Channel that an ambitious future trading relationship, covering services as well as goods, is secured. Failing to secure such a deal would put up unnecessary trade barriers and runs the risk of fragmentation of financial markets, increasing costs and reducing choice for consumers.”

Miles Celic, chief  executive of trade body TheCityUK, said,

.@TCUKmiles responds to the #brexitwhitepaper – It’s regrettable and frustrating that mutual recognition has been dropped before even making it to the negotiating table https://t.co/V0t0aCuM7V

— TheCityUK (@TheCityUK) July 12, 2018

“The overriding issue for financial and related professional services firms is the ability to continue serving customers and clients. Mutual recognition would have been the best way to achieve this. It’s therefore regrettable and frustrating that this approach has been dropped before even making it to the negotiating table. In hundreds of discussions across the EU, the industry has never come across an unanswerable technical or commercial barrier to this approach. The EU’s objections have always been political.

We are reassured that the government continues to reject the current form of equivalence. It does not meet any of the requirements for success. It is now urgent that we make rapid progress on the negotiations, both around the future relationship and on immediate issues for customers such as contract continuity.”

Simon Lewis, Chief Executive of AFME (Association for Financial Markets in Europe), said in a statement:

“We welcome today’s publication of the White Paper providing further clarity and detail on the UK government’s position. We hope that this will form the basis for negotiations to progress, recognising the importance of minimising fragmentation, maintaining financial stability and close supervisory cooperation.

“It is now crucial that the progress is made as quickly as possible. Businesses require certainty of a transition period and direction on the future trading relationship to minimise disruption to clients.”

 

Stephen Jones, chief executive of UK Finance, said: 

However, as today’s paper makes clear, simply relying on existing equivalence arrangements will not provide financial institutions with effective market access that enables them to serve their customers. pic.twitter.com/UwPDBVMgOM

— UK Finance (@UKFtweets) July 12, 2018

“Given the limited time available it is vital that both the UK and EU27 negotiators come to the table and focus on ensuring a legally enforceable agreement, delivering enhanced and expanded third country arrangements that enables meaningful cross-border market access in financial services.”

Law firm Hogan Lovells said:

"The White Paper starts to pencil-in some of the details of the UK Government's position but, even at 104 pages, it raises as many questions as it answers" says Peter Watts, HL Partner. Read more here https://t.co/C5zr8y1f53

— Hogan Lovells Brexit (@HLBrexit) July 12, 2018

“For businesses there will be a range of specific concerns and questions but the overriding impression will be the amount of work that still needs to be done. Even if these proposals can win sufficient favour in principle to enable a withdrawal agreement to be signed before 29 March 2019, it seems inevitable that many important details will remain outstanding. That will mean that many months of the “transition period” are likely to be taken up with continuing negotiations meaning that the practical window for transition could well be much shorter than 21 months. Not the ‘beginning of the end’ but perhaps the ‘end of the beginning’ of Brexit.”

The European Parliament’s Brexit Steering Group said in a statement:

“In a first reaction, it welcomed both the Statement and the White Paper by the UK Government as a step towards establishing a new relationship between the UK and the EU once the UK is no longer a Member State.