With the beginning of the new year we have also entered a new era in our relationship with an important partner. The UK has now left the EU not only in law as happened last January, but with the end of the transition also in practice.
The two sides have come to an agreement on their future relationship. While we regret the limited scope of the agreement and in particular the fact that financial services are hardly covered, we do welcome it as a basis from which to envisage future additions. Its mere existence will also allow for a more serene atmosphere to preside over the handling of outstanding issues, such as the question of equivalences.
As the UK is leaving the EU and thus the single market, we should continue to draw on its unique expertise to help us overcome the challenges we face. In this sense, the declaration on the future regulatory dialogue annexed to the agreement is certainly to be welcomed. Indeed, whether on the digitalisation of financial services where London is playing a global role, on how to finance the recovery of our economies hard hit by the consequences of the pandemic or on the role finance will play in fighting climate change and inequalities, London certainly has a lot to share with its partners.
This should also be the moment where the EU deepens the integration of the single market in financial services in order to create a true Capital Markets Union. All the Brexit relocations have underlined that the EU single market remains a very attractive proposition for firms. We should leverage the full scale of this unique market by eliminating remaining obstacles to allow frictionless movement of capital and services as well as by creating innovative frameworks for new financial activities. The EU Commission is working towards this goal with different initiatives. We need to accelerate this work so as to facilitate the financing of our economies and thus the creation of jobs.
The EU is leading the world in sustainable finance and setting standards that others will hopefully soon follow. We should not see this merely in terms of market share as that would defeat the purpose of the objectives we aim for. By being a global leader on this existential issue, the EU can show how finance acts as a force for good and help us build back better.
