Britain’s Economic Secretary will use a visit to Berlin to make the case for strengthening co-operation in financial services in the two counties.
Andrew Griffith aims to build on the improvement of UK-EU relations in recent months, evidenced in the Windsor Framework signed by Rishi Sunak and Ursula von der Leyen this week, the Treasury said.
The government minister offered an update on his trip on social media, saying it is “fantastic to be in Germany” where he had talks with “leading banks to discuss bilateral opportunities to boost growth and investment.”
His tour is part of the Sunak government strategy to forge stronger financial services regulatory links with EU member states and the bloc as a whole, the Treasury said.
The Economic Secretary kicked off his trip by hosting German financial services and banking chief executives at a breakfast roundtable.
After the discussion, he was scheduled to set out his vision in a keynote speech to leaders in German financial services at the Finanzmarktklausur conference in Berlin.
Talks with his government counterparts were due to follow.
“The Windsor Framework, something many said couldn’t be done, shows what we can achieve when we put our minds together,” Mr Griffith was expected to say in his keynote address.
“It provides solutions that help with the practical implementation of the Protocol, supports trade between Great Britain and Northern Ireland, and offers a sustainable solution that will be in the UK's economic interest.
“In financial services, the Treasury stands ready to continue conversations with our European partners on enhancing regulatory co-operation.”
He was also expected to underline the UK’s commitment to high standards of financial services regulation, by emphasising that ministers “do not want, in any way, to deregulate for the sake of deregulation”.
“And in no way will we put European financial stability at risk. It would not benefit anyone to do so,” he was expected to add.
“We are partners in all of the main international financial bodies ― the FSB, the IMF, the World Bank, the Basel Committee on Banking Supervision, OECD, G7 and G20, Committee on the Global Financial System, the International Association of Insurance Supervisors and the International Association of Deposit Insurers (IADI), to name a few.
“In these forums, and others, Germany and the UK are often aligned in seeking to reinforce co-operation, such as addressing the emergence of new standards like those of the International Sustainability Standards Board.
“The City of London’s success is, in addition to our language, legal system and skilled workers, down to our high regulatory standards.”
Germany's Finance Ministry shared photos on Twitter of Mr Griffith being welcomed to Berlin by Florian Toncar, a junior finance minister. The ministry said the pair met "to discuss various financial market issues" and "also focused on co-operation between Germany and the UK in areas such as sustainable finance".
Mr Griffith is tipped to visit other European capitals in the weeks and months ahead to hold high-level talks to strengthen UK-EU relations on financial services.
The thaw in relations between Britain and the EU after the Brexit deal on Northern Ireland has filtered through to the financial markets of the City of London.
The Prime Minister signed the treaty with European Commission President Ursula von der Leyen in the royal Berkshire town of Windsor on Monday.
There had been fears that the clearing arm of the London Stock Exchange Group would be suddenly cut off in just over two years’ time. As it stands, the permission Brussels has given London-based clearing institutions to continue serving customers in the bloc is due to end in June 2025
The European Commission has been pressuring banks and asset managers in the EU to move clearing in three types of derivatives sold in London to within the eurozone.
But there seems to be little sign that all UK-based clearing must move to the EU. Market participants had feared a "cliff edge" in June 2025.
Much of the desire to keep clearing in London is coming from dealers who use the London markets, but are based in the EU. There was also a memorandum of understanding between the EU and the UK to set up a forum for regulators to communicate on a regular basis. The understanding had been stalled before Mr Sunak’s new Brexit deal, but now it s hoped that relations between the EU and the UK over financial services can improve.
