Michel Barnier, the European Union’s chief Brexit negotiator, has dealt a fresh blow to the City of London and declared the bloc did not "desperately need" Europe’s pre-eminent financial hub.
Speaking in Sofia, Bulgaria, he insisted that UK financial services would only be allowed access to the EU on the basis of “equivalence”, a system of regulatory recognition that can be unilaterally withdrawn, without possibility of appeal, on just 30 days notice.
After mentioning bankers' bonuses, Mr Barnier said equivalence would be smoothed if Britain hewed close to Brussels’ rules, which would keep the City shackled with red tape and cost it any competitive advantage it could gain from Brexit.
Earlier,...