EU–UK Partnership Council

Earl of Kinnoull Excerpts

Thursday 16th December 2021 Lords Chamber

[Lord Frost (Con)]

My Lords, I very much agree with the thrust of the question of the noble Baroness. I think it is well known that we have wanted to get the Horizon arrangements up and running for some time; it is a matter of great disappointment that we have still not managed to do so. It is not 100% clear why, but that is the situation. However, the good news is that we have now agreed that there will be a meeting of the relevant specialised committee before the end of this year, provisionally on 21 December. I hope that might mark a change in the approach being taken and enable us to move this forward.

[The Earl of Kinnoull (CB)]

My Lords, the very first of those declarations made that day concerned financial services. There was an agreement that, by March 2021, an MoU would be concluded to get regulatory framework co-operation. That has not happened, although there were some technical discussions. Will this declaration feature on a future agenda for the Partnership Council, as it is certainly important? Until that MoU has been done, the EU will not assess us for the various equivalence decisions that are so vital to the City. China has 14 equivalence decisions, Mexico has 13 and we currently have two, which are time-limited.

[Lord Frost (Con)]

My Lords, the noble Earl is right that there is a provision to agree an MoU. Indeed, there were discussions at the start of this year provisionally to agree that text. Those discussions have paused, again for reasons that we are not 100% clear about, although we can speculate. Naturally, we hope it will be possible to pick them up and move this forward, given that, as the noble Earl knows, some of the equivalence decisions are now imminent if not quite yet urgent.