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The EU’s chief Brexit negotiator Michel Barnier said on Monday that if the UK leave the single market then financial firms will lose their EU passporting rights. He claimed the UK cannot “cherry pick” at aspects of the single market and it will lose the benefits of the single market when it leaves the European Union. Speaking at a conference by the Centre for European Reform, Mr Barnier said: “On financial services, UK voices suggest that Brexit does not mean Brexit. Brexit means Brexit, everywhere.

Brussles should be granted the power to punish rogue member states flouting “EU values” by withholding billions of pounds in funding from them, a landmark report says today. The dossier, compiled by the influential Centre for European Reform think tank, says the bloc’s current deterrents are too weak and have “proved impossible to use in practice”. 

“I don’t think it makes much difference to Brexit in the short term, because the positions of various parties in Berlin are all pretty hard-line on the issues,” said Charles Grant, the director of the Centre for European Reform. “But it might matter in the long term, because if the negotiations get stuck, Merkel and Macron could intervene to get a deal,” he said. “That might not happen if Merkel disappears, because the EU got used to her knocking heads together.”

In a speech to the Centre for European Reform which will enrage Eurosceptics, Mr Barnier insisted that any attempt to create new rules after Brexit even on domestic issues such as farming and healthcare will meet fierce resistance from the EU.

Mr Barnier argued there would be a risk to Europe’s financial stability if the continent’s main financial centre was outside the EU’s regulatory orbit. While co-operation would be possible at international level, Mr Barnier said this could never amount to the type of access enjoyed by Britain under the single market. “Let’s not have a short memory!” he said, referring to the financial crisis. “We will not compromise on financial stability — we will never compromise on financial stability — in the EU and in the eurozone.” His assessment came in a speech to the Centre for European Reform that highlighted the hurdles remaining if Britain is to achieve “sufficient progress” in divorce negotiations by a crucial December summit.

British banks will lose "passporting rights" to do business in the European Union after Brexit, the EU's chief Brexit negotiator has said. Speaking in Brussels on Monday Michel Barnier said that "Brexit means Brexit, everywhere" and that there could be no opt-ins to parts of the single market for certain industries. “On financial services, UK voices suggest that Brexit does not mean Brexit. Brexit means Brexit, everywhere,” Mr Barnier said in a major speech to the Centre for European Reform think-tank.