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Brussels has closer cooperation with the UK.

Eurozone
Brus­sels has opened the door to closer co-oper­a­tion with the UK on the reg­u­la­tion of fin­an­cial ser­vices in a sign that eas­ing polit­ical ten­sion after a deal on North­ern Ire­land could unlock other dis­putes. «We will turn to the MoU (memorandum of understanding) on fin­an­cial ser­vices soon». There was no timeline, the offi­cial added, but the deal on the North­ern Ire­land pro­tocol provided an oppor­tun­ity to exploit the «full poten­tial» of the Trade and Cooper­a­tion Agree­ment between the two sides. The MoU was agreed upon in March 2021, but its sign­ing has been held up by the dis­pute between Lon­don and Brus­sels over post-Brexit trad­ing arrange­ments in North­ern Ire­land.

It will estab­lish a joint UK-EU fin­an­cial reg­u­lat­ory forum, a plat­form for reg­u­lat­ors to resolve fin­an­cial ser­vices issues. The MoU is also expec­ted to become the frame­work for dis­cus­sions on how to move for­ward with equi­val­ence determ­in­a­tions, which would recog­nise UK reg­u­la­tion as match­ing EU rules. Fin­an­cial ser­vices exec­ut­ives hope that the Wind­sor frame­work will mark a more comprehensive reset for EU-UK rela­tions. Miles Celic, head of The City UK, an industry group, said he expec­ted the deal to «unlock a num­ber of con­nec­ted issues that were caught up with the North­ern Ire­land deal such as the MoU on fin­an­cial ser­vices».

Exec­ut­ives said they hoped the gov­ern­ment would use this week’s agree­ment to improve trad­ing arrange­ments for UK fin­an­cial ser­vices groups seek­ing busi­ness in the EU. 

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