As we have discussed at some length here, Brexit in general and the U.K.’s approach to it are, to use British political lexicon, a fucking omnishambles. No one really knows what it means. After two years of trying to figure it out, there’s finally a plan. Well, actually two plans. And half a government. All for something that may have possibly been engineered solely for hedge funds to make money, and which may still be unfolding long after we are all dead.
Suffice it to say that the President of the United States—a big fan of Brexit and no fan of the European Union—thinks that Theresa May is royallyfucking it all up, although he supports her entirely in that endeavor. If she’s interested, however, he can fix it—in the only way Donald Trump knows how.
“He told me I should sue the E.U.,” Mrs. May said…. On Sunday, Mrs. May seemed to suggest that Mr. Trump’s advice had not been completely consistent. “Interestingly, what the president also said at that press conference was, ‘Don’t walk away,’” she told the BBC….
Urging litigation, presumably in the very courts that the U.K. is seeking to liberate itself from, and being wildly inconsistent? That sounds like our president. What a special relationship, indeed.
The new Brexit proposal instead seeks a middle ground, so that British banks are allowed to operate under a kind of expanded equivalence arrangement. That, suggests Mrs. May, would provide Britain’s banks with greater access to European Union markets, as well as regulatory and supervisory cooperation with the bloc.
Whether the European Union will agree to such a proposal remains to be seen. Michel Barnier, the bloc’s chief Brexit negotiator, has suggested that regular equivalence arrangements should be good enough for Britain’s banks.
“Why would the equivalence system, which works well for the U.S. industry, not work for the City?” he asked in April.