Brexit news: Remainers predictions mocked as panicking EU make decision on City | UK | News

Michael Fabricant has taken aim at “Project Fear” and reminded Remainers about his previous prediction, where he insisted trade through the City on London would not be affected by Brexit due to the volume of transactions conducted firms in the EU. In a post on social media, the backbench Tory MP recalled a quote from German Finance Minister, who said EU banks trade more on the London Stock Exchange than on the EuroNext Paris in France and Frankfurt Stock Exchange in Germany combined.

Mr Fabricant wrote on Twitter: “While Remainers predicted the collapse of the City after the Referendum.

“I quoted the German Finance Minister who said that London are the EU bankers trading more Euros than Frankfurt and Paris combined ‘Hurting the City would damage the EU more’.”

It comes as Brussels chiefs have agreed to let European banks trade in London until at least 2022.

With no signs of a trade deal on the horizon, plans have been put forward for an 18-month special trading licence beyond the end of the transition period on December 31.

The London Stock Exchange clears around 90 percent of euro interest rate exchanges at more than £150billion every day.

For many firms, London acts as a “clearing house” – a mediator between buyers and sellers during trade.

In the long term beyond Brexit, the EU wants the majority of the clearing for euros to be within the eurozone, with the European Central Bank taking a greater role.

Trade talks between the UK and EU continue to remain on the brink following Prime Minister Boris Johnson’s Internal Market Bill which risks overriding parts of the Brexit Withdrawal Bill.

On Monday, the Internal Market Bill passed the first hurdle in the House of Commons after being approved by MPs.

Mr Johnson has insisted the legislation, which threatens to break international law, is intended to provide a legal “safety net” to protect the peace process.

As well as ensuring the EU could not impose tariffs on goods moving to Northern Ireland from the rest of the UK.

READ MORE: Brexit LIVE: Boris Johnson rejects EU leak about compromise

“The European Union and the UK jointly agreed that it was the best and only way for ensuring peace on the island of Ireland and we will never backtrack on that.

“This agreement has been ratified by this house and the House of Commons. It cannot be unilaterally changed, disregarded, disapplied.

“This is a matter of law and trust and good faith.”

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