U.K. financial firms will not have the ability to bear on business like before inside the European Union (EU) after it leaves the coalition, as indicated by Luc Frieden, who has held a few portfolios inside the Luxembourg bureau in the course of recent decades.
“We need a strong partnership with the United Kingdom, it’s our neighbour and it’s going to remain an important financial services centre. Yet at the same time, ‘out’ is not ‘in’ and therefore I think the United Kingdom must know that it’s not going to benefit anymore over the passporting rights it used to have,” Luc Frieden told CNBC on Friday in Luxembourg.
“So with those two pillars, I think in between a deal can be found but it will be very difficult and it will take a lot of time,” he added
Passport rights allow financial firms within the EU to run operations and offer services throughout the European Economic Area with ease.
“I think the United Kingdom can in no way get this passport in the future. Look at the Swiss. The Swiss have always asked for this and they’ve never got it,” Frieden declared.
“In these negotiations we always have to keep in mind that we have a partner and a friend that is Switzerland. So these negotiations – Brexit – and the ongoing negotiations with Switzerland have to be kept in mind and have to develop in parallel,” Frieden explained.
Since UK’s economy rely heavily on finance services, passport rights becomes a key topic on exit negotiations.