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A8 U.S. NEWS
Friday 5 May 2017
EU eyes rules that could move thousands of jobs from London

By DANICA KIRKA key role in the stability of fi-
Associated Press nancial markets and mon-
LONDON (AP) — The Euro- etary policy.
pean Union said Thursday The statement comes as
it’s preparing new regula- the EU and Britain begin
tions that could force a key two years of complex ne-
financial market — and gotiations over the separa-
potentially thousands of tion of two economies that
jobs — to move away from have been intertwined for
London once Britain leaves more than 40 years. A Ger-
the bloc. man newspaper reported
The EU’s executive Com- Sunday that European
mission said it will present Commission President
next month new rules on Jean-Claude Juncker said
the oversight of this market, Britain Prime Minister There-
the so-called clearing of sa May was in a “different
euro-denominated trades. galaxy” in her expecta-
In financial markets, clear- tions for Brexit. May yester-
ing is the business of act- day accused EU officials of
ing as an intermediary in making “threats” to influ-
a trade to reduce the risks ence next month’s general
from defaults by ensuring election in Britain.
funds are delivered to the Treasury chief Phillip Ham-
seller. Some 75 percent of In keeping with traditional practice, Colonel Geoffrey Godbold, center, the City of London Cor- mond said Britain would
poration’s Common Cryer and Serjeant-at-Arms reads out the Proclamation of the Summons for a
euro-denominated inter- new Parliament on the steps of the Royal Exchange, in the City of London, Thursday, May 4, 2017. consider any proposed
est rate derivatives are All 650 seats in the House of Commons are up for grabs in the June 8 election. clearing regulations but
cleared in the U.K. — and (AP Photo/Matt Dunham) that the EU must be careful
tens of thousands of jobs not to disrupt growth and
depend on the business. whether clearing houses ation is changing,” Dom- outside the EU, meaning investment in the U.K. and
Some European authori- would be forced to leave brovskis told reporters in they would not be subject Europe.
ties want this euro clearing the U.K. if they wanted to Brussels. to the bloc’s regulations “London is the world’s No.
business to be located in continue handling euro- While the Commission did and supervision. 1 financial center, with
a country in the EU, as the denominated trades, Com- not specify what the new The Commission said it high standards of financial
bloc is tightening its over- mission Vice President Val- rules would be, it expressed wants to ensure clearing supervision, including long-
sight of banks and financial dis Dombrovskis said the EU concern that after Brexit houses are subject to the standing cooperation with
services in the wake of the was “looking at this issue.” a “substantial volume” of “safeguards provided by EU institutions,” Hammond
financial crisis. “Of course, in a context of euro-denominated trans- the EU legal framework” in said. “This benefits the en-
When asked Thursday Brexit we see that the situ- actions would be cleared areas where they play a tire continent. q

Czech president ‘accepts’ PM’s
unoffered resignation: report

KAREL JANICEK microphone with his walk-
Associated Press ing stick.
PRAGUE (AP) — It’s no se- “Ladies and gentlemen,
cret that Czech President I’m really not sure what to
Milos Zeman is not a fan of speak about,” Sobotka
Prime Minister Bohuslav So- said, adding he had come
botka. to talk to the president.
But what happened on Zeman, though, had more
Thursday surpassed any- to say. In an apparent de-
thing that had happened liberate act of humiliation,
between them in the past he told Sobotka he was
and shocked the country. accepting his resignation.
Sobotka arrived at Prague He thanked Sobotka for his
Castle, the seat of the work and asked the gov-
presidency, on Thursday ernment to remain in place
for consultations with the until he appoints a new
president following his de- prime minister.
cision to resign with his “I’m not here to resign,” a
government over the busi- visibly shaken Sobotka re-
ness dealings of his finance plied. “I expected to hold
minister. Sobotka had an- standard talks with the
nounced earlier in the day president.”
that he would formally sub- The scene was broadcast
mit his resignation later in live by public television.
the month. Zeman told him to blame
But on arrival, Sobotka was his office for informing him
told to make a statement too late about a change
to the media. in the premier’s plan. So-
As the premier looked con- botka originally planned to
fused, Zeman pointed to a resign this week.q