Originally posted by sirja
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Yes, I think that's right though. It's definitely a risk, and the early indications aren't good. There's an assumption, in negotiating, that self-interest (rationality) will prevail, but it might not if serious splits emerge among the member states and the EC takes a bigger role. If May were to settle on a position herself, I'm sure she'd opt for staying in the single market on the condition that freedom of movement were reinterpreted to mean freedom of movement for workers (around 70k a year). However, realistically, this is unlikely to deliver a significant cut in inward migration (work would simply be organised in advance) and I don't think May would survive this position. Personally, I think the risk to London is much more subtle than Euro-clearing, although this makes the headlines. The problem with threats to Euro-clearing is that it's a protectionist move that will undermine confidence in the EU (w/r to being a free trading block) and its placement in London is built on the acceptance of English law around the world (unlike EU law, as evidenced by the recent Apple shenanigans). No, I think this is just France sabre-rattling. The real risk to London is that it loses its financial ecosystem over time (death by a thousand cuts), i.e. the ability to undertake all manner of transactions in one place, and this is what we'll need to guard against, as far as possible, through equivalence (although equivalence itself risks some aspects of this).
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