The EU’s post-Brexit finance ambitions miss an important point

Although the British political system appears to have staved off a no-deal Brexit for now, London still faces an existential threat. Unless the UK suddenly changes its mind about leaving the EU, banks, insurers and other financial services businesses still face the prospect of a hard Brexit in all the likely scenarios — including a no-deal departure or membership of the customs union.

It is understandable that politicians have made little effort to shield financial services from the coming hit. A sector that has become associated with bonuses and privilege cannot really expect more. But make no mistake, the approach being taken by the EU and UK risks not only near-term market disruption to Europe’s capital markets, but also long-term outcomes that neither side has anticipated.