In a notable development for the relationship between the United Kingdom and the European Union, Jeremy Hunt, who serves as the Chancellor of the Exchequer, is set to sign a financial services cooperation agreement with Commissioner Mairead McGuinness. This milestone agreement aims to establish a constructive and mutually beneficial relationship between the United Kingdom and the European Union in the field of financial services. As the UK’s first visit from a Chancellor to Brussels in over three years, this signifies a renewed commitment to fostering collaboration and addressing shared challenges.
The Importance of Financial Services Cooperation
The Memorandum of Understanding between Chancellor Jeremy Hunt and Commissioner Mairead McGuinness marks a crucial step in post-Brexit UK/EU relations. With the UK serving as a leading global hub for financial services, this agreement acknowledges the deep interconnection between the UK and EU financial markets. In 2020, approximately 44% of the £11 trillion of assets managed in the UK belonged to international investors, including those from the EU.
Establishing a Regulatory Cooperation Forum
The signed agreement establishes an ongoing forum for the UK and the EU to engage in voluntary regulatory cooperation on financial services issues. Through this platform, both sides will share information, collaborate to tackle joint challenges and coordinate positions in preparation for international meetings such as the G7 and G20. By facilitating dialogue and cooperation, the UK and the EU aim to ensure the stability and efficiency of financial services in both jurisdictions.
A Commitment to Mutual Benefit
The Memorandum of Understanding is an important testament to the commitment of both the UK and the EU towards fostering a cooperative relationship. Chancellor Jeremy Hunt emphasizes the interconnectedness of the UK and EU financial markets and recognizes the immense value of the financial services sector to the British economy. With an estimated worth of £275 billion in 2020, comprising around 12% of the British economy, the financial services sector, along with the related professional services sector, is a true British success story. This agreement, along with existing cooperation arrangements with major financial partners such as the U.S., Japan, and Singapore, further solidifies the UK’s role as a global financial services hub.
Exploring Competitiveness and Growth
During his visit to Brussels, Chancellor Jeremy Hunt will engage in meetings with Valdis Dombrovskis and Margrethe Vestager, European Commission Executive Vice-Presidents. Discussions will focus on topics such as the UK’s competitiveness and growth, the EU’s Green Deal Industrial Plan, and economic security. These meetings reflect the shared commitment of the UK and the EU to address economic challenges and explore opportunities for collaboration in various sectors.
Source: Gov[Dot]UK
