EC VP speech highlights risks arising from Brexit

In a recent speech, Vice-President of the EC, Valdis Dombrovskis, warned of the consequences arising from the fact that the transition period agreed at a European level was part of the overall future withdrawal agreement.  Therefore, if finalisation of the withdrawal agreement was compromised due to issues such as the Irish border and governance of the withdrawal agreement, the transition period could consequently also be put at risk.

Accordingly, the Vice-President reiterated the need for firms and supervisors to prepare for all scenarios – which would include a hard Brexit with no transition period.  He also discussed potential risks to an equivalency based post-Brexit future, and reiterated that the Commission’s first priority is to safeguard financial stability and ensure investor protection.