Britain will have to pay money to Brussels’s coffers to pay for single market access for the financial services, according to reports.
London’s booming City contributes billions of pounds to the EU economy but some in Brussels have threatened to limit its access to the single market.
EU diplomats are said to be plotting a ‘pay per access’ model for the UK’s financial services sector.
Under the plans, the sector would be allowed access to the EU’s single market but only if the British taxpayer continues to pay into the EU budget.
Theresa May has ruled out paying vast quantities into the EU budget after Brexit and it remains how much cash the EU will demand under the model, which was revealed by the Politico website.
Theresa May (pictured in China today with their President Xi Jinping) has ruled out paying vast quantities into the EU budget after Brexit, but the EU has drawn up plans to demand cash for single market access for the financial services sector
Meanwhile, it has been reported that the EU is drawing up plans to slap the UK with sanctions if Britain takes a drastically different path on the economy after Brexit.
Brussels is scared that if the UK liberalises its economy and slashes taxes to bring in new investment it might be left unable to compete.
TORY RISING STAR SAYS UK MUST BE PREPARED TO SLASH TAXES AND RED TAPE AFTER BREXIT
Tory rising star Bim Afolami said the UK must be prepared to dramatically break with the EU and slash taxes and red tape if Brussels gives us a Brexit punishment deal
Tory rising star Bim Afolami said the UK must be prepared to dramatically break with the EU and slash taxes and red tape if Brussels gives us a Brexit punishment deal.
The new MP for Hitchin and Harpenden, who worked in the City before being elected to Parliament last June, said ministers must be ready to deliver a credible threat of deregulation in financial services if the EU maintains its hardline stance.
He said: ‘We have to prepare for the eventuality that the EU really plays hard on financial services. They know it is an area where they can sting the UK.’
He warned that if the EU does this the UK must decide whether to follow EU rules and hope to come up with something better later on, or, ‘are we brave enough to say, if you don’t allow us access to markets, we are going to compete — aggressively.’
Mr Afolami said playing hardball was the only way to fight the U.K.’s corner in a political battle.
So under the plans, revealed in the Financial Times today, the bloc is plotting to bring in ‘non-regression clauses,’ sanctions, ‘tax black lists’ and penalties against state-subsidised companies in a future trade deal with Britain.
Slides of a leaked power point presentation show that Brussels is gearing up to play tough to prevent it being undercut by Britain.
The bloc claims it is considering bringing in the punishments to ensure a ‘level playing field’.
And it says the measures will hit back at the ‘clear risks’ of Britain watering down controls on the environment, state aid or employment.
But the move will be seen as an aggressive measure designed to seriously curtail Britain from taking back full control over the economy.
Many Brexiteers have s aid the UK must be prepared to carve out its own economic model and slash taxes and red tape to boost business investment if the EU insists on giving us a Brexit punishment deal.
It comes maid growing fears that the PM is ‘going soft on Brexit’ and will switch course to keep the UK in the EU customs union.
The move would mean the UK would be seriously hampered form negotiating and signing off its own trade deals – a key reason why many people backed Brexit in the historic referendum.
It comes after Tory rising star Bim Afolami last night said the UK must be prepared to dramatically break with the EU and slash taxes and red tape if the EU gives us a Brexit punishment deal.
The new MP for Hitchin and Harpenden, who worked in the City before being elected to Parliament last June, said ministers must be ready to deliver a credible threat of deregulation in financial services if the EU maintains its hardline stance.
He said: ‘We have to prepare for the eventuality that the EU really plays hard on financial services. They know it is an area where they can sting the UK.’
He warned that if the EU does this the UK must decide whether to follow EU rules and hope to come up with something better later on, or, ‘are we brave enough to say, if you don’t allow us access to markets, we are going to compete — aggressively.’
Mr Afolami said playing hardball was the only way to fight the U.K.’s corner in a political battle.
Theresa May, pictured in Brussels in September where she got EU leaders to agree to move on to the second phase of Brexit negotiations, but Brussels is now gearing up to hit the UK with sanctions if we break away form their economic model drastically after Brexit