Barnier warns City of London to scale down Brexit hopes

Mr Barnier argued there would be a risk to Europe’s financial stability if the continent’s main financial centre was outside the EU’s regulatory orbit. While co-operation would be possible at international level, Mr Barnier said this could never amount to the type of access enjoyed by Britain under the single market. “Let’s not have a short memory!” he said, referring to the financial crisis. “We will not compromise on financial stability — we will never compromise on financial stability — in the EU and in the eurozone.” His assessment came in a speech to the Centre for European Reform that highlighted the hurdles remaining if Britain is to achieve “sufficient progress” in divorce negotiations by a crucial December summit. Mr Barnier stressed it was for Britain to “come forward with proposals” that would ensure there was no hard border on the island of Ireland, including through commitments to avoid regulatory divergence between Northern Ireland and the Republic if necessary.