From Breakingviews - The fog in the English Channel is clearing a bit
on financial services, which has been gathering dust. The agreement wouldn’t immediately give firms in the City of London any extra access to the EU. But the memorandum provides for voluntary cooperation between regulators. That should enable the UK and EU to agree that regulations for large chunks of their financial markets are equivalent, opening the door to easier trade.
Cooperation on other issues may, therefore, have to wait until there’s a change of government. That may not be long: Britain has to hold a general election within two years and Labour is consistently well ahead of the Conservatives in the opinion polls.Climate change is one potential area for cooperation. The UK helped pioneer the EU’s emissions trading system , which forces industrial companies to buy permits when they emit carbon dioxide.
The UK may have no alternative to introducing its own CBAM. Otherwise, cheap carbon-intensive products such as Chinese-made steel may flood its market, says David Hannay, a member of the House of Lords European Affairs Committee and former UK ambassador to the EU.
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