Prime Minister Yoshihide Suga has been wary about taking measures that would hamper economic activity, while he has put on a brave face against the mounting challenges of hosting the delayed Olympics in Tokyo this year.
Japan’s coronavirus cases topped 300,000 on Wednesday, while the death toll reached 4,187, public broadcaster NHK said.
As infections hover at record levels, straining the country’s medical system, opinion polls have shown a public increasingly opposed to holding the Summer Games and growing frustration with Suga.
In a weekend survey by NHK, just 16% of respondents said the Games should go ahead – down 11 percentage points from the previous poll last month – while a combined 77% thought they should be cancelled or postponed. The Games are set for July 23 to Aug. 8.
Even Takeshi Niinami, CEO of beverage giant Suntory Holdings and an economic adviser to Suga, told Reuters he was unsure whether the Olympics could be held as planned, and that a decision will likely be made by end-March.
Suga announced the expanded state of emergency to include Osaka, Kyoto, Hyogo, Fukuoka, Aichi, Gifu and Tochigi prefectures from Thursday at a task force meeting. He will hold a news conference 7 p.m. (1000 GMT).
The latest emergency declaration covering 55% of Japan’s population of 126 million is set to last through Feb. 7 and is much narrower in scope than the first one last spring. It focuses on combating transmission in bars and restaurants, while urging people to stay home as much as possible.
The government will also suspend an entry-ban exemption for business travellers from 11 previously designated countries and regions during the state of emergency.
Suga has been criticised for what many observers have said was a slow and confusing response to the pandemic. That is a sharp reversal from the strong support he enjoyed at the start of his tenure, when he was seen as a “man of the people” who could push through reforms.
Among the most controversial moves has been a scheme that subsidised local tourism, encouraging millions to travel domestically. That was put on hold late last year.
Political analyst Atsuo Ito said he saw two major problems with Suga’s response to the pandemic: that it was incremental and slow, and that he was a poor communicator despite having been the top government spokesman in his previous role as chief cabinet secretary.
“He has almost no skill at messaging. Even at press conferences he’s looking down and reading notes. That doesn’t invite trust from citizens … The result is that his support ratings are falling,” Ito said.
Suga’s approval rate fell below those who disapproved for the first time in an NHK poll since he took office in September – by 40% to 41%.
The poll also showed 88% think Feb. 7 is too early to lift the state of emergency – a view shared by many experts.
“It’s very unlikely we’ll see cases go down after just a month,” said Yoshihito Niki, an infectious disease specialist and professor at Showa University Hospital.
“Japan has been called a success story and there’s been discussion about the so-called Factor X – something that makes the Japanese more resistant to the virus – but that’s a complete fantasy,” Niki said.
The Slovenian government said on Thursday (14 January) it had restored the financing of national news agency STA after Brussels warned against any attempt to pressure public media outlets.
STA has come under fire from right-wing Prime Minister Janez Janša for what he called unfair criticism in its reporting.
“We have authorised the payment” to the agency, a government statement said.
The government announced it was halting money for STA in December after saying management had failed to correctly file accounts.
In today’s edition of the Capitals, find out more about the Dutch parliament urging its government to sue Poland before the EU Court for disrespecting the rule of law, France saying it will only accept the EU-UK withdrawal agreement if its interests are respected, and so much more.
Later in December, parliament adopted a package of emergency coronavirus measures which included a provision calling for the resumption of STA payments.
However, the government then referred the question to the European Union claiming the funding could breach EU rules on state aid and competition.
The European Commission insisted Monday the nature of the funding meant it did not have to approve the payments and warned all member states against attempts to pressure the media, saying public media “play a special role in the European Union”.
STA was founded in 1990 when the country decided to leave the former Yugoslav federation and it had been receiving two million euros in public funds annually.
Since assuming office in March, Janša has used his Twitter account to attack media outlets which have questioned his handling of the coronavirus crisis, accusing them of spreading lies and serving opposition interests.
In October, Janša tweeted that STA was a “national disgrace, an evident abuse of the name it carries” for having given more space to an interview with a musician who criticised the government than to his meeting with close ally Viktor Orbán, Hungary’s nationalist prime minister.
Janša is well-known as an admirer of Orbán and of outgoing US President Donald Trump.
The regions of the Ionian and Aegean islands, as well as Epirus, are the only areas in Europe in the ‘green zone’ in terms of Covid-19 exposure and performance, according to data released by European Centre for Disease Prevention and Control for the 14 days preceded by January 14th.
The map image of Greece regarding the spread of the coronavirus shows an improved state, compared to the other countries of the European Union.
At a time when most of the EU countries are in the “red zones” (a high-risk category that arises if the cases of the last 14 days are 50 or more per 100,000 inhabitants in combination with 4% positive tests or if the cases are more than 150 per 100,000 inhabitants), Greece is substantially in the “yellow”, in the recording of the number of cases per 100,000 inhabitants during the last 14 days, which in combination with the percentage of positive tests, reflects both the rate of spread of the disease and its penetration dynamics in the community.
As can be seen in the map below, the situation is much better (“green”) in Epirus, Ionian islands, and Aegean islands.
At the same time, while most of the countries of the Union are in the “red”, the situation in our country has improved in the index of positivity (cases/number of tests), which has fallen below 4%, according to the measurements announced today Fifth by the European agency and relate to last week.
Agadir – The number of detected irregular border crossings along the European Union’s external borders fell by 13% in 2020. According to figures collected by Frontex, the European Border and Coast Guard Agency, this was primarily due to the COVID-19 restrictions many countries put in place.
Both Western and Eastren Meditarenean saw a marked decrease in irregular migration last year. The Western Meditarenean, primarily Spain, recorded 17,000 arrivals, a 28% decrease compared to 2019. Meanwhile, the Eastern Meditaranean recorded only 20,000 border crossings, a decrease of 76%, the biggest drop in arrivals across the EU.
While COVID-19 restrictions certainly have played their part in reducing irregular migration, also notable have been Morocco’s efforts to curb irregular crossings.
Morocco has witnessed continued success in stopping attempted irregular migration operations bound for Spain, causing undocumented migrants passing through Morocco to seek new routes, such as crossing the Atlantic towards the Canary Islands.
As a result, the Canary Islands experienced a record number of undocumented migrantion in 2020, with over 22,600 irregular border crossings detected on the Western African migratory route. With an increase of eight times compared to 2019, this was the highest number of irregular border crossings recorded by Frontex since it began collecting data in 2009.
<p>Most migrants departed from West African countries such as Mauritania, Senegal, and Gambia, with smugglers using large fishing boats capable of carrying large numbers of people at once.
Similarly, the Central Mediterranean route also saw an increase of traffic, recording 35,600 arrivals, an increase of 154%. Tunisia saw a sharp growth of departures, but most undocumented migrants came from Libya. A notable point of the report is the decline in child migration, with approximately 10% of irregular migrants being under the age of 18, compared to 23% in 2019.
The government’s proposals to enable British musicians to tour the EU without having to negotiate individual visa requirements for each member state were not fit for purpose, according to an EU spokesperson.
As it stands, British musicians may be forced to pay for country-specific visas and equipment carnets when touring the continent – a situation that has been decried by the British music industry as prohibitively expensive and laborious, potentially limiting its £5.8bn contribution to the economy.
The government and the EU have been blaming one another for the breakdown of negotiations regarding visa-free touring on the continent since the Independent reported on Sunday that the UK has refused to allow European acts 90 days of visa-free travel, prompting widespread condemnation, including from Radiohead’s Thom Yorke, who called the government “spineless”.
On Wednesday, culture secretary Oliver Dowden sought to blame the EU for the red tape facing British touring musicians, telling NME that it had “repeatedly” turned down the government’s proposal for a “mutually beneficial agreement that would have allowed performers to continue working and perform across the continent without the need for work permits”.
But the government’s proposal would not have solved the problem of British musicians having to negotiate individual visa requirements with each member state, according to a spokesperson from the EU.
Having refused to include a chapter on mobility in the Brexit agreement, the UK government rejected the EU’s standard offer of visa-free short stays – working up to 90 days in a 180-day period – and a list of paid activity exemptions that could exclude musicians, artists, sportspeople and journalists from the requirement to seek visas to work in individual member states. This offer was incompatible with the Conservative manifesto commitment to taking back control of Britain’s borders, the government claimed.
Instead, the UK attempted to negotiate the issue via the short-term business visitor category and the category for contractual service suppliers and independent professionals known as Mode 4. The World Trade Organization says Mode 4 “does not concern persons seeking access to the employment market in the host member”.
Neither category covers musicians, said the EU spokesperson. It would also be ineffective: Mode 4 discussions are neutral on the matter of visas, meaning that requirements regarding entry and temporary stay continue to apply. Even if the EU had agreed to the UK’s proposal, British musicians would still be left facing the same red tape.
DCMS said the EU’s statement was misleading. The government claimed that its proposals would have allowed musicians to travel and perform in the UK and the EU without needing work permits, and that the EU’s offer only covered ad-hoc performances and did not address technical staff or the issue of work-permits.
A DCMS spokesperson told the Guardian it stood by Dowden’s earlier comments. “I’m afraid it was the EU letting down music on both sides of the Channel – not us,” Dowden had told NME.
The EU declined the UK’s offer of 30 days’ visa-free work for EU musicians on the grounds that this is the UK’s existing standard policy and offered no added value to its members, and because it offered significantly less than the EU proposal at the mobility negotiation.
Jamie Njoku-Goodwin, chief executive of UK Music, said the industry had “no interest in playing a blame game. We just want to understand what has happened and then take steps to resolve this situation. We need both sides to work with the music industry to find a solution that benefits everyone. It is vital that all sides now get around the table and agree a way forward that avoids needless red tape and bureaucracy that could put some tours in jeopardy.”
Speaking to the liaison committee on Wednesday, prime minister Boris Johnson did not appear to grasp the situation facing British touring acts, incorrectly stating that British musicians have “the right to go play in any EU country for 90 out of 180 days” – the EU proposal that the government turned down.
Speaking at Prime Minister’s Questions on Wednesday, Johnson said he would meet with MPs to address their concerns on the matter. “I know that our friends in the EU will be wanting to go further to improve things for not just musicians, but business travellers of all kinds,” he said. “There is a mutual benefit.”
London has no shortage of hotels – and particularly luxury hotels, with old-world charm and new-world service. Traditionally, the capital’s luxury hotels were clustered in the upmarket enclaves of Kensington, Knightsbridge and Chelsea, with ample high-end shopping opportunities on the doorstep. As the notion of luxury evolves, that’s all changing with a new breed of design-centric luxury hotels popping up in the capital’s trendiest neighbourhoods. Wherever you want to lay your head, one thing’s for sure: these hotels have impeccable service, out-of-this-world food and the comfiest bedrooms in all the capital.
Here’s our pick of London’s best luxury hotels.
The Independent’s hotel reviews are unbiased, independent advice you can trust. On some occasions, we earn revenue if you click the links and book, but we never allow this to affect our coverage.
Part of the Hilton’s new upscale LXR brand, The Biltmore on Mayfair’s Grosvenor Square might have borrowed a strong American name, but inside the vibe is all British. Case in point: it was here, at 44 Grosvenor Square, that the Battle of Waterloo was declared a success in 1815. The lobby is a shimmer of gold, bronze and jolly floral soft furnishings, while Jason Atherton’s The Betterment sits just off to the right, serving modern British cuisine (try the signature fried onion flower, which tastes like a posh onion ring) and surprisingly reasonable cocktails. On the topic of cocktails… end your night swilling a whisky in the dim, wood-panelled Pine Bar. Guestrooms are decked in luxurious neutral, if a little bland, tones, but it’s the service that really stands out. Check-in staff will not only remember your name but wave you off with it the next day, but never in a way that feels overpowering or cloying.
Rooms from £450 lxrhotels3.hilton.com/lxr/biltmore-mayfair
When Asian hospitality chain Shangri-La opened in the Shard, Western Europe’s tallest building, in 2014, it was literally head and shoulders above the rest of London – as well as being the first luxury hotel south of the river. The hotel, which occupies the floors from level 35 upwards, pairs its pared-back guestrooms – lots of business-friendly beige and black lacquer – with panoramic views across the entire city. Deep baths are positioned by the glass windows to maximise the views. If you’ve a whole day to spend, make time to go for a swim in the (indoor) infinity pool on level 52, and if you’re here at the weekend – the afternoon tea in TING lounge is delightful, and staff are only too happy to top you up with crustless sandwiches and scones.
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Rooms from £535 shangri-la.com/en/london/shangrila/
(The Standard)
The formerly dowdy 70s Camden Council building on thundering Euston Road has been turned into London’s snazziest hotel by Standard Hotels CEO Amar Lalvani. The UK outpost of the West Village mainstay, so close to St Pancras station you can almost see the platforms, mixes seriously buzzed public areas – such as the pot plant-filled library, with a carefully curated selection running the gamut from “chaos” to “order”; restaurant Ila; and American diner-style bar Double Standard – with rooms straight out of the 1970s. Expect orange, red and pink acrylic furniture, bed covers from the same designer behind the Tube seats, and lots of funky rounded edges. If you’re too tired to party here, a couple of journeys in the flashy lifts will feel like enough.
Rooms from £229 standardhotels.com
Accessed via a small courtyard from busy High Holborn, the Rosewood London masterfully blends Asian-inspired opulence in a nod to its Hong Kong roots – with licks of black lacquer, Chinoiserie and live birds tweeting from gilded cages in the stairwells – and contemporary luxury accents, such as the hammered copper sinks in the bathrooms and amped-up minibars. The excellent Holborn Dining Room adjoins the hotel (and feels nothing like your standard hotel restaurant) and here the pies are legendary: chef Callum Franklin has dedicated an entire menu to them, and the hotel even offers pie masterclasses.
Rooms from £415 rosewoodhotels.com
Smack dab opposite Hyde Park is the grand neoclassical Lanesborough, which, thanks to its stately good looks, has been used often as a stand-in for Buckingham Palace. Today it’s about as close as you can get to feeling like a royal without being born one. Interiors by designer Alberto Pinto recall 18th-century Regency style (which continues into the ultra-plush guestrooms) and fresh flowers are everywhere. The Michelin-starred Celeste restaurant, all duck-egg blue and upholstered mustard chairs, is worth a visit in its own right for its elegant afternoon tea.
Rooms from £615 oetkercollection.com/hotels/the-lanesborough
Splashily reopened in summer 2019 following a fire, London’s original grande dame is back and better than ever. Its cosseting basement spa has been enlarged since the renovation, offering luxurious treatments incorporating Traditional Chinese medicine and anti-ageing Nescens facials in its 13 treatment rooms, as well as a custom Pilates room. Hong Kong designer Joyce Wang has reimagined the guestrooms, giving them a subtle Art Deco touch.
Rooms from £760 mandarinoriental.com
Sitting grandiose in Knightsbridge on the edge of Hyde Park, a stiletto’s click away from Harrods and Harvey Nichols, The Berkley oozes elegance and Art Deco grandeur. Perhaps it’s because numerous designers have collaborated with the hotel, including Paul Smith, who designed a range of bespoke crockery for the catwalk-inspired afternoon Pret-a-portea. The hotel has 190 rooms, 55 of which are suites, many with terraces overlooking Hyde Park and some bigger than most London flats. Marble bathrooms, wooden panelling and abstract art from the likes of Takahashi Murakami adorn the walls.
It’s old school London with a distinctly modern vibe, from suited and booted doormen and the award-winning David Collins designed Blue Bar that offers over 50 different whiskies, to the Instagrammer’s heaven, the snug at The Berkley Bar, designed by Bryan O’Sullivan with millennial pink walls, mural wallpaper and plush velvet sofa, perfect for an intimate group or romantic nightcap. The Berkley has two restaurants, the Michelin-starred Marcus, from head chef Marcus Wareing – a must for foodies – and The Collins Room, which offers a breakfast of champions. The spa is currently being refurbished and when complete will comprise a pool, sauna, steam room and gym, with serene white treatment area offering organic Bamford products.
Rooms from £400 +VAT
the-berkeley.co.uk
Tucked away behind Fenchurch Street station (and just moments from the touristy Tower of London) is Four Seasons’ second London outpost, 10 Trinity Square. Taking over the former London Port Authority building, this beaux-arts property welcomes guests past its Corinthian columns into its cathedral-like rotunda bar, under which a grand piano sits. Rooms, accessed via a long semi-circle around the building, are decked out in a lot of black and mirrors, while the bathrooms zero in on their crown jewel: giant gold mosaic baths. Plus, acclaimed French chef Anne-Marie La Pic has her two-Michelin-star outpost downstairs.
Rooms from £352 fourseasons.com
Indian hospitality group Taj is known for its individual heritage properties, so it’s no surprise its upscale London outpost is housed in three Victorian townhouses in groomed St James, not far from Buckingham Palace. As the name suggests, Taj 51 is an all-suite hotel, aimed at guests after longer stays – suites come with vast living rooms and fully kitted-out kitchens. Decor very much runs along classically elegant lines: think lots of rich golds, red and fat velvet cushions. The grand buildings, in quintessential red London brick, face off a quiet courtyard complete with cherub-decorated fountain. Don’t miss the basement Jiva spa, or a multi-course dinner at Michelin-starred South Indian restaurant Quilon, attached to the hotel: the masala prawns aren’t to be missed.
The EU is pledging big investment in a new era of space commercialisation, joining a queue of companies and governments aiming to provide internet service from space.
The idea is to send a constellation of hundreds of internet-beaming satellites into orbit. EU Internal Market Commissioner Thierry Breton this week said he wanted to get going as soon as possible.
“My objective is to go fast,” he told the 13th European Space Conference on Tuesday. “And therefore it would be appropriate that the Commission puts forward this year a proposal to the European Parliament and the Council so we can move concretely.”
Breton said he has commissioned astudy to determine the scope of the system, with feedback due by April.
The EU initiative coincides with the booming private sector push into space, promoted by extremely rich backers like Elon Musk, Jeff Bezos and Richard Branson.
“SpaceX changed the market and we need to catch up with them,” Hugo André Costa, a member of the board of the Portuguese Space Agency, told the conference.
The proposed EU internet system is similar to Starlink, a mega constellation of tens of thousands of orbiting transmitters being sent into orbit by Musk’s SpaceX.
A similar constellation is underway at online retailer Amazon, while the UK government has paid £500 million to acquire 45 percent of a satellite operator OneWeb, with the aim of providing blanket internet coverage.
“Mastering the digital flow is key for the future,” said Hervé Derrey, CEO of Thales Alenia Space, the French-Italian aerospace manufacturer.
Derrey, whose company is to provide hardware for the Lunar Gateway, a US-led mission to build a space station around the moon, said Europe is trailing efforts from companies like Microsoft to expand cloud computing into space. Cloud providers have seen a surge in demand since the COVID-19 outbreak, as more businesses use their services to support working from home.
“We have to do better than that,” Derrey said. “We can’t let the GAFA [Google-Apple-Facebook-Amazon] go alone in this race.”
‘Offensive, aggressive push’
To rise to the occasion, the EU’s space spend is being bumped up, with Breton promising “the largest ever EU-level budget for space” of €13.2 billion in the next seven years, to cover a range of satellite launches.
Over the past decades, Brussels has backed big space efforts like GPS-rival satnav Galileo and climate mapping Copernicus, but officials now recognise they have catching up to do in other areas.
There is heightened awareness of the need to create more home grown space infrastructure and avoid reliance on rivals. A new urgency is visible, as the EU tries to catch up with the huge private space sector push in the US, and keep pace with China’s rapid advances, which include the first ever landing on the far side of the Moon in 2019.
Breton, who is a former head of the IT company Atos, called for “a more offensive and aggressive strategy” to ensure Europe remains in the game for launcher technology, and keeps independent access to space.
“The standards for launchers are currently being redefined outside of Europe. We must ask ourselves: will our current approach successfully get us to 2050, considering the disruptions in the sector that we all observe? I strongly doubt it,” Breton said.
He called for a “European Launcher alliance”to set a course for the next generation of technologies to “ensure an autonomous access to space”.
Ignoring the opportunities and threats posed by next-grade space technology is simply not an option, officials and company heads said.
“There is a limit to what we can do with optical fibres [on earth] – we don’t have that limitation in free space, which is the reason why quantum works [so well] there,” Derrey said. “The bad news is that the quantum technologies will increase the level of security risk. This is why we need to raise the bar.”
A giant leap for EU?
In the shadow of the continent’s giant aeronautics companies, there’s a small but growing space industry in Europe, competing to send satellites and other hardware into orbit faster and cheaper than ever before.
A host of young companies are breaking onto the scene, such as Pangea, which is aimingto make reusable rockets; Exotrail, which makes propulsion systems for small satellites; Anywaves, which builds satellite-mounted antennas; and AerospaceLab, which builds satellite platforms.
Advances in technology and computer chips have enabled smaller satellites to perform the same tasks as their predecessors, bringing space into wider reach for companies.
To support space-related start-ups, the EU is pledging €300 million via its first ever investment fund for the sector, the InnovFin space equity pilot. According to Breton, the fund, launched last year, will eventually swell to €1 billion.
The money will target activity in what has been dubbed “new space”, a more commercial push in an industry historically dominated by governments and the military.
While this sector is getting off the ground in Europe, “the big valuations are still American,” said Bogdan Gogulan, CEO of private equity firm Newspace Capital in Luxembourg. Finnish space start-up ICEYE is an exception, with the company raising over €100 million to date, Gogulan said.
Over two-thirds of all space investment in the last 15 years happened in the US, even as it makes up only 40 per cent of the global market. “Europe is significantly underinvested in space,” said Gogulan. It is not enough for space companies to show a record of winning research grants, they need “sticky” funding, meaning a reliable flow of money, he said.
Fears for space collisions
The quickening space race leaves the world more open to large unknowns and risks, officials say.
“There’s a disaster waiting to happen,” said Ekaterini Kavvada, director of development and innovation at the Commission’s directorate for Defence Industry and Space.She warned of a “drifting island of debris” that’s ready to cause havoc to European space assets. “I’m afraid this is a reality, one that poses a threat for the safety of orbit traffic,” she said.
There are an estimated 5,000 satellites in space, only 2,000 of which are functioning. Kavvada counts over 500 collisions and explosions in recent years.
Any collision could leave the EU’s Galileo or Copernicus satellites “severally compromised”, she said. “Think of the impact on our security, safety and economy.” Growing space clutter could also ruin scientific research by blocking our view of the stars, scientists warn.
The European Space Agency (ESA) is planning a clean-up operation, preparing a small spacecraft with robotic arms to start removing debris by 2025, said Rolf Densing, the agency’s director of operations. He is challenging industry to come up with ideas to make it happen.
“We are ‘hands-off’ as much as we can. This is the way to go about it: to give more responsibility to the private sector,” he said.
As space becomes more accessible to companies, Densing estimates there will be 10,000 satellites in orbit by the end of the decade.
“We are [already] getting hundreds of collision warnings a day. We have to fly a collision avoidance manoeuvre [on agency assets] every two weeks or so,” he said.
He spoke about a Sentinel-1 satellite that was struck two years ago, resulting in a pierced solar array. “It’s one of the few satellites that has a selfie camera, so we were able to take a very nice picture of it,” he said.
‘Shockingly-pink elephant’
Densing has hopes for advanced machine learning and artificial intelligence tools to help manage all the space traffic, but ultimately politicians will have to do something about it, he said. “We need to act. It calls for more regulation. It reminds me of the traffic on a German autobahn. There’s a speed limit but almost everyone drives a bit faster than permitted.”
Only half of all satellites are decommissioned, Densing said.
GMV Aerospace is a Spanish company that runs24-hour collision avoidance for 10 satellite operators. “This is becoming a bigger issue,” said Jorge Potti, the company’s general manager.
“It’s an elephant in the room that is painted in shocking pink,” said Luca Rossettini, CEO of D-Orbit, an Italian space firm. “Because we cannot stop the growth of satellites.”
LONDON (Reuters) – The City of London may remain largely cut off from the European Union’s financial markets, industry officials warned on Thursday, saying a future co-operation agreement won’t automatically unlock access.
Britain’s new post-Brexit trade deal with the EU does not cover financial services, leaving the City largely isolated from its biggest customer, fragmenting markets and helping New York to pick up business, the officials said.
Britain and the EU are in talks to agree a memorandum of understanding (MoU) by March to set up a forum for cooperation between financial regulators, raising hopes of greater EU access for the City.
“We have to be clear eyed, the MoU has negligible legal effect and depends on goodwill,” Miles Celic, chief executive of TheCityUK told a House of Lords committee.
“It’s a talking shop,” added Nick Collier, managing director of the City of London’s Brussels office.
The EU has granted temporary access only for derivatives clearing and settlement of Irish securities under its equivalence system.
Some 6 billion euros in daily share trading left London for the EU last week, joining 7,500 jobs and over a trillion pounds in assets since Britain voted to leave the bloc in 2016.
Brussels says it wants an MoU to help it find out how far the UK will diverge from EU financial rules before granting more market access. Britain insists that changes to its rules won’t mean a watering down of standards.
In the meantime, activity leaving Britain may not return.
“The longer we don’t have equivalence on the EU side, the more the concrete will set. There would be further costs in shifting business back,” Celic said, adding that New York was already benefiting from new business.
EU market participants have also had to shift derivatives trading from London to platforms in the EU or venues in the United States that already have equivalence.
Collier said he was sceptical the EU would grant trading equivalence given it wants to build up its own capital market.
“The MoU will not deliver equivalence,” he said.
Separately, Michael Thiel, a senior official in the European Commission’s financial services unit, told a webinar that a review of EU securities rules this year aims to make the EU the “main and most efficient place to trade in euro denominated assets”.
Celic said that Britain too needs to spell out a future strategy.
“What is the vision for financial services for the UK outside the EU? There needs to be a clear statement on what we want from financial services,” Celic said.
Reporting by Huw Jones; Editing by Kirsten Donovan