The European Parliament has published its proposed mandate for a new partnership with the UK. The declaration acknowledges that the “close relationship” that will subsist and which, according to the Political Declaration should be based on a balance of rights and obligations, respecting the integrity of the single market, could take the form of a comprehensive partnership agreement. But that cooperation will require both parties to maintain high standards in a number of policy areas. The declaration notes the relationship should be as close as possible, but must and will be different from the relationship between EU Members. It also notes the level of “depth and ambition” will be commensurate with the UK’s “stringent timeframe”. It also notes the EU concerns on the UK interpretation of border controls and notes that the UK’s preferred position of a free trade agreement is not the equivalent of “frictionless trade”. It also notes a strong believe that the UK should adhere to evolving standards on taxation and AML legislation, and should address the non-compliance with EU good governance criteria and transparency requirements in its Overseas Territories, Crown Dependencies and Sovereign Base Areas.
In terms of financial services in particular, the mandate notes that UK companies will lose passporting rights, and says that market access should be based on equivalence decisions, with a mechanism in place to ensure equivalence is maintained over time, but that the EU can withdraw the status at any time.