26 June 2016
Commissioner Lord Hill, responsible for Financial Stability, Financial Services and the Capital Markets Union, has informed European Commission President Juncker of his decision to resign from his post as European Commissioner, saying that the result of the Brexit referendum made it impossible for him to continue in his post. Hill will be replaced as of July 15 by Valdis Dombrovskis, the Latvian vice president responsible for the Euro. Jean Claude Juncker said, that “the work of the European Union must go on. After having spoken with Martin Schulz I have asked Valdis Dombrovskis, Vice-President responsible for the Euro and Social Dialogue, to take over the portfolio for Financial Stability, Financial Services and the Capital Markets Union.” Lord Hill’s resignation will take effect on 15 July, while President Juncker’s decision to transfer his portfolio will take effect on 16 July.
Normally, when a commissioner’s term ends, so does that of their staff. However, it is unclear what will happen to Hill’s cabinet. Hill´s resignation underscores how the British relationship with the EU will now be changed fundamentally as regards financial regulation. Another evidence of the vote to leave the EU is that the European Banking Authority will move away from London. An EBA spokeswoman said that the European Union will have to decide on relocation and in the meantime the agency would continue to operate in London. The UK will be bound to set and negotiate some of their financial regulation rules again as EU rules can no longer be a legal basis in the long run. What the effects of the Brexit referendum on future competition and financial stability will be is at the time very unclear.
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