LONDON (Reuters) – The deal on Brexit transition provides British companies 20 months of invaluable time and marks the victory of pragmatism over politics, the top of British business foyer CBI stated on Tuesday.
Carolyn Fairbairn, director-general of the Confederation of British Industry, stated she was broadly happy with the transition deal agreed between Britain and the European Union on Monday.
“Yesterday was a good day in the Brexit process. We know how firms have been consistently planning for a hard Brexit,” Fairbairn instructed the Innovate Finance conference.
“That is 20 months of time that is genuinely valuable. This is the first time we have seen pragmatism being put ahead of politics,” Fairbairn stated.
But she added: “The risk of no deal has not completely gone away.”
She known as on regulators to consider the transition deal as now being very possible, which means they can provide “air cover” or certainty for companies.
Financial companies need the Bank of England and the Financial Conduct Authority to say they will depend on the transition deal in order that they don’t have to have all their Brexit plans in place by March subsequent yr.
“In the longer term, we’re going to move quite quickly into the final deal shape. This fundamental opportunity to have a model of regulatory alignment, particularly in services to safeguard access, is where we need to go next,” Fairbairn stated.
“And I think what we want to see by October is the shape of that, because only that really gives the long term certainty that our services need,” she added.
Reporting by Huw Jones and Emma Rumney; Editing by Catherine Evans