COMMONS

Chair comments on the UK's future economic relationship with EU

10 January 2017

The Treasury Committee heard evidence on the UK's future economic relationship with the EU.

'The ecosystem in London is like a Jenga tower'

Following the session, Rt Hon. Andrew Tyrie MP, Chairman of the Treasury Committee, said:

"The unanimity among these leading City figures - about the need for a three-year "standstill" at the end of the Article 50 process - is significant. They argued that without such an arrangement, major banks and other financial services firms will take pre-emptive action at a cost, perhaps large, to the sector and the wider economy.

They also made other important points. Preserving the access arrangements provided currently by passporting is an important objective. Accepting the loss of one part of the financial services industry, such as euro clearing, could have unintended and disruptive consequences, for the UK and the EU.

As Douglas Flint put it, the ecosystem in London is like a Jenga tower."

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