First, Brexit accentuates the need to develop and integrate the EU’s capital markets to prepare for the likelihood that the City of London will play a reduced role in the future. We should therefore renew our ambition for the capital markets union (CMU) project. Second, Brexit means that the EU’s future relationship with the United Kingdom in financial services needs to be defined.
However, the probability of success of new initiatives, based on past experience, is quite low, so we must avoid overblown expectations, and we must be prepared to recognize and abandon things that clearly have no future.