With British Prime Minister Keir Starmer and senior EU representatives at the head of the negotiations, the moment will be conducive to review and expand the existing agreements. Beyond issues such as energy or defense, Financial services must take a central place on the new cooperation agenda.
Five years after Brexit, the defensive approach that characterized the initial conversations no longer responds to current needs. The geopolitical context has changed and the economies of both the United Kingdom and the EU face global challenges that require joint solutions.
Reincorporate the financial sector in political dialogue It can contribute not only systemic stability, but also sustainable economic growth On both sides of the Canal de la Mancha.
Finance must return to the negotiating table
The international financial system faces renewed tensions. In this environment, the EU and the United Kingdom have common incentives to protect your economies against global turbulenceespecially with the growing questioning of the hegemonic role of the dollar and US monetary policy. Establishing a stronger cooperation in financial services would allow both regions to diversify risks and foster a more resilient ecosystem.
The United Kingdom, with its experience in normative simplification, can contribute good practices in regulatory matters. For its part, the EU offers fertile land to experiment with financial innovations such as digital currencies, sustainable finances and shared prudential frameworks. A well-designed collaboration can transform Post-Brexit competition into structural synergies.
Overcome technical blockages
One of the urgent priorities of financial restoration must be the persistent conflict on the compensation and liquidation of derivatives. The EU continues to depend on the United Kingdom to perform these critical operations through entities such as LCH Ltd., based in London. However, successive extension of equivalence agreements does not offer long -term security. Temporal renovations generate uncertainty that hinders the fluid market operation and limits investment appetite.
Fragment the compensation between different jurisdictions weakens the natural advantages of this system, which is based precisely on the economies of scale and in dense networks. Instead of aspiring to a complete disconnection, it is more sensible to establish formalized supervision channels that include a structured collaboration between the AEVM and the British supervisors. A stable cooperation frame could reduce friction without putting into play the regulatory autonomy of any of the parties.
The other great technical theme is the existence of fictitious companiesformally domiciled in EU countries as Luxembourg, but whose key functions continue to be carried out from London. This practice mine the supervision capacity of European regulators and distorts compliance levels. A bilateral agreement on local minimum content and Common governance standards It can reduce systemic risks and at the same time strengthen the European internal market.
Attract capital without generating dependence
The United Kingdom remains a key actor in the attraction of foreign direct investment (FDI) towards Europe. In spite of the descent registered after Brexit, London continues to represent a quarter of all the acquisitions and more than one fifth of the Greenfield projects in the single market. This role as a «entrance door» should not be seen as a threat, but as a Strategic lever to boost common projects.
Since the EU needs to mobilize historical amounts of private investment for its ecological, digital and defense priorities, maintaining a fluid connection with the British financial system is a matter of economic pragmatism. A deeper and accessible capital market requires cooperation, not isolation.
Avoid fragmentation without losing sovereignty
The way to a new financial agreement must recognize that the standards will no longer advance in unison. However, that does not imply that the only option is a deregulated competition. Create Mechanisms for controlled divergence It would allow preserving normative autonomy without unnecessarily multiplying compliance requirements for companies and investors.
Areas such as the insurance sector, payment infrastructure and the regulation of new financial technologies would benefit from a common road map. If properly managed, collaboration can also reduce capital costs and improve the quality of financial services available for citizens and companies in both jurisdictions.
From rivalry to intelligent interdependence
From Brexit, important assets and jobs in the financial sector have emigrated from the United Kingdom to other European capitals. But this has not been a zero sum game. Emerging balance can be transformed into a functional interdependenceif both parties recognize that active cooperation is more beneficial than a forced separation.
Instead of blocking access due to systemic risks, regulators must focus on Design Insurance Interaction channels. A system based on mutual confidence, shared standards and joint review can become a flexible integration model for other regions of the world.
Reintegrating finances in the united UE-Reino dialogue is not only possible, but necessary. Financial convergence can act as a catalyst for broader political cooperation. Taking advantage of the May summit to take this step would be a powerful sign of institutional maturity and strategic vision.