France has escalated its battle to shut out the City of London from the EU’s financial markets, calling for British clearing houses to be barred from 2025.
Clement Beaune, the European affairs minister, said a “clear signal” must be given to financiers so that clearing moves from the UK to the continent.
“Either we consider that the clearing market will always be London-based – fine, maybe,” Mr Beaune said. “Or we consider that there is a sovereignty issue in making a European market, and we must say that there will be a time when clearing in the UK will stop.”
Clearing is a crucial part of the plumbing for financial markets.
EU-based banks and other financial businesses can use UK-based clearing houses because Brussels has agreed to allow access on a temporary basis post-Brexit until 2025. Mr Beaune wants the agreement to come to an end at that point.
“It is desirable that we set a credible horizon for building a eurozone clearing market,” the minister said. “The worst thing is to not give a clear signal to the financial sector.”
It is the latest in a…
