Dr. Christy Ann Petit:

To reinforce the positive and optimistic approach, I completely agree about the willingness of the community and the political representatives but at the same time we need to acknowledge all the alternative scenarios as being worse for communities and for society. This is where all of us can work and make strong points that can be acknowledged in evidence to showcase that these alternatives scenarios, which were discussed and considered before a deal was eventually made, were not positive for anyone. I would still have a positive approach considering the fact that there is an appetite to reach a compromise but we have a strong ask to consider what has been put on the table on the EU side with the October 2021 package but also some updates that were made in June 2022 in the context of infringement proceedings, saying that we can move forward but please come to the table with us and we will negotiate and discuss this at a technical level.

I am aware that the technical operations and the technical side need a broader political context that is favourable but there is much evidence from all groups and across society that we need to move ahead and that there needs to be a solution. As regards regulatory divergence, two years ago in the context of the UK internal markets Bill, there were some moves made to ultimately facilitate the conclusion and agreement of the EU-UK Trade and Cooperation Agreement, TCA. When we look at the Bills that are currently being discussed, there is a very strong position on the EU side to say that the Bills that are now being considered could be adapted. Clauses could be revised or removed to ensure there is no infringement of what has already been agreed. At the same time the different degrees of regulatory divergence would impede trade and economic activity. I am currently working on a study for the European Parliament on financial services regulation in respect of the UK and to what extent we can anticipate divergences which would be critical for the operation of economic activities in the financial sector, acknowledging the fact the UK and the EU are very much interconnected at this level. This sector could be an example of how co-operation could be elaborated on or designed in the meantime. Until we reach a deal, the channels for co-operation and talking further, as energy co-operation has shown, could also be used in this sector, namely, for trade and financial services.

Another point to consider that is not ideal but which exists is equivalence regimes. We could consider the equivalence of the frameworks at regulatory and supervisory level. If the EU granted equivalence, it would not be ideal for the UK's regulatory autonomy. Hearing this prospect, the UK side could look at what the consequences would be and opt for a better solution than this one.