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.
Who benefits from the provision of financial services? The people provided with financial services.
So, the demand is that the UK should pay into the EU budget so that EU citizenry can benefit from UK financial services.
They can also bugger off on this:
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.
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.
That the EU follows one socio-economic model is just fine. But rather the point of not being in the EU is the freedom not to follow that socio-economic model.
My own preference would be that they do try to impose such sanctions and restrictions. We then go full Hayek on them. A few decades later we’ll be able to tot up who won then, won’t we?