Europe will lose decision-making autonomy and be worse off under the terms outlined in last week’s Brexit whitepaper from Theresa May’s government, says the EU’s chief negotiator.
The UK government scrapped its plans for mutual recognition of regulation in the whitepaper.
The whitepaper instead proposes an equivalence model, similar to that used by Singapore and the US for easier access to Europe.
However, EU negotiator Michel Barnier says the terms assume the UK’s benefits across Europe’s financial services sector as a right rather than a privilege.
Barnier says Brussels will engage with the proposals, but European consumers will need greater protection if the UK is to have access to financial markets without the same product standards as other players.
Mutual recognition would result in the UK and EU recognising each other’s rules for fund managers, banks and insurance providers.
Last week’s whitepaper also calls for a safeguard for acquired rights, preventing access to the EU’s financial markets being withdrawn.