A Brussel Led Crackdown to be Held in Britain if EU Demands are not Met
MEPs have ordered Brussels to black-list the city of London if it does not comply with the EU’s Demands. Brussel is to lead a crackdown in England’s tax regime before allowing the City of London the market access to the EU.
European Parliament’s Pro-Brussel group called for a keen investigation into tax and anti-money laundering in the UK. They proposed that bankers and financial managers from Britain should be kept out of the EU’s financial service market if their demands are not met.
The UK and EU are struggling with settling on details regarding the financial service pact. This dispute has been expected to end next month with a regulatory framework for banks from both sides to follow.
In the letter by the EU Parliament, the Economic and Monetary Affairs Committee has called the pact, supported by commitments that aimed to prevent tax evasion and money laundering.
Brussels is concerned that separated Britain will become a hub for low regulations. The MEPs have asked the EU to, “integrate robust commitments to prevent the UK from becoming a low-tax destination for businesses to ensure a level playing field. Continuous monitoring of any possible digression of UK rules from EU standards with a view to avoiding undue competitive advantages”.
This interference began after the British financial service companies tried to sneak into the EU’s financial market. Michel Barnier, European Commission’s Head of Task Force for Relations, also warned Britain after that.
Mr Barnier said, “As far as financial services are concerned, we know there are attempts to circumvent the new rules through what we call letterbox structures. Needless to say, national authorities of the EU in each and every country and the EU authorities themselves will be very, very vigilant. In the next few weeks and months, I recommend everyone to be careful.”