LONDON (Reuters) - Financial centers outside the European Union would be the benefactors if the European Union sought to punish the City of London as Britain leaves the bloc, Brexit minister Dominic Raab said on Wednesday.
Raab told a parliamentary committee he did not believe the EU would try to punish the London’s financial sector, but that if they did, “I think the only winners would be the other financial centers in the top 10 like Tokyo and New York.”
UK could hold back EU payments without Brexit deal
Britain could choose to withhold some payments to the European Union if a deal to ease its exit from the bloc is not reached before it leaves in March, Raab told legislators on Wednesday.
As part of a Brexit transition deal, Britain has agreed to pay the EU between 35 and 39 billion euros ($41-$46 billion) over the coming decades.
But Raab told members of Britain’s upper house of parliament that not all of this was a legal obligation, and payment could be delayed without a deal.
“I don’t think it could be safely assumed on anyone’s side that the financial settlement that has been agreed as part of the withdrawal bill would then just be paid, in precisely the same shape or speed or rate, if there was no deal,” he said.