Q: There was a lot of uncertainty over the UK’s Brexit plans until UK prime minister Theresa May’s Lancaster House speech in January, which pointed to a hard exit from the EU. The impact on the financial sector, with concerns over EU market access for British banks, could be significant. What is the German perspective on this?
A: First of all, I welcome the fact that the prime minister also announced that the UK wants to maintain close co-operation and the most frictionless trade in goods and services possible with the EU. However, a hard exit clearly would affect market access. This is all the more true since it will be challenging to agree on both a ‘divorce’ contract and a comprehensive free-trade arrangement within two years.