Banking association president expects hard Brexit
“Today’s notification by the United Kingdom of its intention to leave the EU has brought Brexit a step closer, now comes the phase of intense negotiations,” says Hans-Walter Peters, President of the Association of German Banks and Spokesman of the Personally Liable Partners of the private bank Berenberg. “I regret this decision, but we now have to look forward and make the best of the situation.”
The United Kingdom is heading towards a hard Brexit. “It’s unlikely,” Peters adds, “that the coming two years will see not only an exit agreement being reached but also a comprehensive economic treaty regulating mutual market access.” The German private banks expect the United Kingdom to obtain third-country status in spring 2019 since, based on the British demands that have emerged to date, there will probably be no agreement on transitional arrangements. Peters stresses that there’s nothing unusual about this. It’s important, however, to establish legal certainty for existing contracts so that these can continue to be honoured.
“We continue to be interested in good relations with the United Kingdom. But there can be no cherry-picking in the negotiations,” Peters underlines. “The four fundamental freedoms of the EU – free movement of people, goods, capital and services – are inseparably linked to full market access and are not up for discussion.”
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