July 12, 2018 / 1:53 PM / in 5 months

German finance minister says EU must make its own decisions on financial services

FILE PHOTO: German Vice Chancellor and Finance Minister Olaf Scholz gestures during a news conference to present the fiscal plan for 2019-2022 in Berlin, Germany, July 6 2018. REUTERS/Axel Schmidt

BERLIN (Reuters) - The European Union must make its own decisions and cannot have outside legislators deciding on financial services rules after Brexit, German Finance Minister Olaf Scholz said on Thursday.

Asked about the so-called equivalence system, which is based on Brussels granting access to the EU for banks, insurers and asset managers from outside the bloc if the bloc deems their home rules to be similar enough, Scholz said:

“I regret that developments are now such that it is going to be very difficult for the financial system in Britain.”

“But it is clear that the European Union must, of course, take its own decisions, including on its own within the framework of the democratic structures we have established. There cannot be additional legislators on the outside.”

Britain has said equivalence is too one-sided and wants a bespoke trading deal for banks based on mutual recognition or the UK and EU accepting each other’s rules.

Reporting by Tom Koerkemeier; Writing by Paul Carrel; Editing by Victoria Bryan

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