Germany has cried out over the lack of progress in the Brexit trade negotiation between the UK and the EU considering that the country’s businesses could be shut out of major funding.
Joerg Kukies who’s the Deputy finance minister said the country risks losing access to vital funding provided by the City of London if Britain and the EU fail to reach a deal by end of this year.
Mr Kukies warning follows the post-Brexit negotiations moving to Brussels as part of an intensive work to be done if a deal must be reached considering that time is running out.
He said, “German corporates, for all that I can tell, rely massively on wholesale financing offered from the City of London, so in that sense, we will have to maintain pragmatism, no matter what happens. But at the moment we are deeply conceived by the lack of progress in negotiations.”
Negotiation on post-Brexit trade and security collaborations are separate from those on financial services. It’s also believed that both the EU and the UK are intensifying talks to seal a deal considering it’s only a short period before the transition period ends.
However, Britain stands firm on leaving the EU’s single market and customs union, as well as the bloc’s financial services rulebook at the end of December 2020. Will both sides remain close allies, whatever happens? The question wasn’t answered by Mr Kukies.
He said: “There is so much depth and intensity of relationships between European countries and the UK that this will not degenerate into animosity, I am absolutely convinced about that.”
Although his comment is not in line with what European Commission President Ursula von der Leyen said when she claimed the Brexit talks were making progress after a brief update from her chief negotiator, Michel Bernier.
“We’re making good progress but there are two critical issues: level playing field and the fisheries, where we would like to see more progress. We are in very close contact on an hourly basis because the negotiations now have been intensified … There are 11 other fields of files that have to be negotiated,” Mrs von der Leyen said.
Meanwhile, European Council President Charles Michel said the talks would be assessed next week while hinting a deal could emerge by mid-November to allow the EU to start its ratification process.
“We’ll have the occasion, probably next week to assess what’s the situation. We are working together to make a deal possible with the UK, but at the same time, there are some very difficult topics, which are very important for the European side the level playing field governance and also the fisheries,” Mr Michel said.
On a brighter side, Canadian prime minister Justin Trudeau said he looks forward to finalizing a trade deal with Britain without the same wrangling as London’s pact with Brussels.
“Canada is extremely pleased to be the only G7 country that has a free-trade deal with every other G7 country and we would certainly like to keep that.
“There have been many discussions over the past years between myself and Prime Minister Johnson and his predecessor on that seamless transition on a rollover of the CETA between Canada and the European Union to be the basis for a Canada-UK free-trade that would allow certainty for Canadian and British companies going into the future.
“I think you’ve heard that there are significant complexities that the UK is grappling with in terms of negotiating the post-Brexit agreement with the European Union. I can highlight that it’s fairly straightforward with Canada and we are certainly very optimistic in the ability to see things roll over smoothly.
“The UK is engaged in many different negotiations right now but Canada is certainly there to ensure this certainty that can be given to British companies, at least with Canada, as other things are worked out in a more complex way,” Mr Trudeau said.