There has been quite a lot of media coverage of the recently finalised negotiations between the EU and the US Department of Treasury and Federal Insurance Office on a “covered agreement” for (re)insurance services. Notable features of the deal include the national, uniform treatment of collateral requirements, exchange of regulatory information between leading supervisors and mutual recognition of financial oversight regimes. This last point in particular couldn’t be more topical.
As the Davos elite gather in the shadow of the Trump inauguration, much of the talk is of uncertainty over the future of globalisation. Davos sessions with titles such as ‘Climate change: COP out?’ highlight the very real fears that the new mood could see politicians privilege the national and local at the expense of the multilateral and global, with damaging impacts on future climate policy.
Theresa May’s Lancaster House speech has provided much needed clarity about the British approach to Brexit. It has reset the baseline for the negotiation by taking the UK out of the single market. This is a hard concession for Europhiles in Britain to swallow, but one that was inevitable. By conceding the point early, the UK will avoid being put on the defensive immediately and will therefore find itself in a better negotiating position.
The upcoming Dutch parliamentary elections on 15 March are the first test in a year that will see populist parties perform strongly in elections in France, Germany, and probably Italy as well. Earlier this week, Dutch Prime Minister Mark Rutte ruled out any coalition with Geert Wilders, leader of the populist right Party of Freedom (PVV). Wilders’ agenda goes further than Marine Le Pen’s by unequivocally pushing for EU withdrawal and a ban on all Muslim migration. While Rutte’s statement on the PVV may come as a relief for many in the European mainstream, the key lesson from the Netherlands will be that populists can have an impact on the political process and debate even when they are unable to enter government.
UK immigration minister Robert Goodwill’s comments were very rapidly dismissed by his prime minister this week when he floated the idea of extending the proposed £1,000 a year charge on skilled migrant workers to workers from the European Union after the UK has left the EU. Aside from the now familiar sight of ministers being put back in their boxes after speculating on life after Brexit, this usefully drew attention to the big question of what a UK government might be tempted to do to reduce pressure on migration.
There was some comment this week about the fact that the UK’s largest financial services advocacy body TheCityUK has self-consciously ceased to advocate the retention of passporting rights for UK-based financial services businesses after the UK has left the EU. This was presented as a concession of ambition, but it is also a form of tactical retreat.
Campaign group Change Britain has published flawed and incomplete analysis suggesting the UK will gain £24bn a year, or £450mn each week, if the UK government pursues a ‘clean Brexit’ and leaves the single market and customs union.
The EU Advocate General Eleanor Sharpston yesterday delivered an important preliminary conclusion in the European Court of Justice’s (ECJ) review of the ratification requirements of the EU-Singapore FTA. This sounds like an arcane question but is actually a big political issue. Because the question Sharpston has answered is the question of whether or not EU trade deals need to be ratified not only in Brussels, but by parliaments in EU member states. Sharpston has effectively today said that Wallonia should always get a say.
The European Commission today brought charges against Facebook, alleging the company misled the EU’s competition authorities during its acquisition of WhatsApp in 2014. The social media giant stands accused of submitting evidence to the Commission to the effect that it was technically impossible to match its users’ accounts with WhatsApp’s, something subsequently shown not to be the case when the companies announced in August this year that their accounts would be matched.