Bruegel today published a policy brief by André Sapir, Dirk Schoenmaker and Nicolas Véron on the future of the financial system in EU27.
The brief outlines new possibilities for EU27 if the EU and the member states can rethink the regulation setup in the single market.
In the brief there are some really interesting ideas about the future of the financial services in the EU. One should not under estimate the effect of UK not sitting at the table any longer and protecting the interest of the UK and London in the negotiations. It should be easier for the EU27 to agree on moving forward without the British trying to pull everything to London.
One of the big topic for the financial market in Europe is of course Euro clearing. It seems very unlikely that EU27, the member states and the ECB can accept that such an important part of the financial transactions is not under supervision of an authority in a EU member state. As the Bruegel rightly states, this requires a rethinking of the financial infrastructure in the EU.
If the financial sector will be more integrated cross border instead of the current national approach in the European Union, that could be a positive effect of Brexit.