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Macron says that U.K. must pay budget to maintain access of banks to the EU

French President Emmanuel Macron said that Britain must pay the EU budget and accept the jurisdiction of EU courts if it wants to retain full access of its banks to the bloc's markets after Brexit, conditions that affect two of the main red lines.

Speaking next to May after an Anglo-French one-day summit near London, Macron told reporters that his main objective in the Brexit negotiations is to ensure that "the single market is preserved, because that is at the heart of the European Union ".

He said that "a lot" depends on the United Kingdom to decide what it wants.

"I am not here to punish or reward the United Kingdom," Macron told reporters at the end of the debate. the top. "Do you want to accept a single market with finance being part of it? Be my guest, but that means financial contributions and acceptance of European jurisdiction."

The debate about how British banks and the financial services industry will be able to access European markets after Brexit is shaping up to be the biggest battle in the forthcoming negotiations on the future relationship between Britain and the bloc.

Great Britain wants to maintain access as close as possible to current agreements, while opting not to participate in the EU, which it does not like, such as the free movement of people. The EU says that Britain can not be in the single market unless it accepts all its rules, and says May's red lines mean that all that is offered is a commercial agreement on goods, without too many services.

Financial services employ more than 2.2 million people in Britain and contribute almost 11 percent of economic output, according to CityUK, an industry body. Paris is among the EU cities that are pressuring banks to withdraw jobs from London after Brexit.

"Actually, it is not only the United Kingdom that is interested, but also the European Union, as it continues to continue to have a good economic relationship with the United Kingdom," May said at the same press conference. "That should encompass both goods and services, the city of London will continue to be an important global financial center, which is an advantage not only for the United Kingdom, it is actually good for Europe and good for the global financial system."

Macron stuck to the script of the EU's chief negotiator, Michel Barnier, while applying the options available to the United Kingdom, including the Norwegian and Canadian models. In exchange for access to the single market, Norway accepts its rules without having a voice in writing them, and pays in the EU coffers, both politically unpleasant options for May. Canada's trade agreement is the best of its kind, but it would not cover financial services and the UK has already rejected it because it is too limited. The secretary of Brexit, David Davis, has said he wants an agreement " Canada plus more".

For France, a decrease in the importance of the financial center of the United Kingdom presents an opportunity to look for jobs in the City of London. Institutions that include Deutsche Bank, JP Morgan and Goldman Sachs prepare for to transfer personnel from London to the continent.

Read more: Citigroup post-brexit trade center will be operational at & # 39; 18

After dinner at The two leaders led to the Royal Military Academy of Sandhurst, southwest of the capital, where they witnessed a military parade and an aerial parade of a British typhoon and a French jet Rafale.

The summit, designed to underline that the relationship between the two nations goes beyond Brexit, including the ministers of foreign affairs, defense, security and culture. Agreements were reached on military cooperation, immigration, nuclear energy and space exploration. Notably, France pledged to lend Great Britain the Bayeux Tapestry, a 950-year-old artifact that represents the victory of William the Conqueror at the Battle of Hastings.

The two countries also signed a new agreement on immigration called Sandhurst Treaty updates the existing agreement of Le Touquet, which requires a faster processing of immigrants in France seeking to reach the coasts of the United Kingdom. May, meanwhile, promised 50 million euros to strengthen border controls in the French port of Calais.

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