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Draghi says UK shouldn't get any favors in Brexit deal

GBPUSD News by Newsroom on 16:09 September 26, 2016 EST

Mario Draghi said the UK shouldn't be granted any special favours on access to the single market during negotiations over its exit from the European Union.

"Any outcome should ensure that all participants are subject to the same rules," the European Central Bank president told European Parliament lawmakers on Monday. "It is very hard to imagine that any agreement that will be perceived as discriminatory against some subjects or in favor of other subjects could be a source of stability for the future of our EU." he added.

Since the Brexit referendum in June, the British government has been trying to work out whether it can retain access to the single market without accepting all of its conditions, most notably the free movement of labor. Poland, the biggest exporter of workers to the UK, last week joined a number of eastern countries in signalling it may veto any agreement that would erode the rights of its citizens to live and work throughout the bloc.

Draghi said that while the ECB doesn’t have an official role in the Brexit negotiations, it could act in an advisory capacity. He also noted that the central bank has jurisdiction over the payment system and that there may be a need to consider changing the regulatory framework for the planned capital markets union.