UK regulatory revamp may worry EU

British Prime Minister Boris Johnson has called on business groups and leaders for ideas on how to change regulations to boost the country's economy, a move that may alarm European Union officials.

In a call with 250 business figures on Wednesday, the British leader pushed plans for regulatory and legislative reforms following the country's departure from the EU and the post-Brexit trade deal agreed last month, the Financial Times reported

Given that Britain had agreed to observe the so-called level playing field rules in its trade deal negotiated with the EU, the call could agitate officials in Brussels who would see it as the UK considering deregulation that could amount to divergence on rules covering issues such as workers' rights and environmental protections.

Also on Wednesday, Andrew Bailey, the Bank of England's governor, suggested to members of Parliament that Britain should abandon full access to EU financial markets if it means becoming a regulatory rule-taker.

Officials from the UK and the EU will seek an agreement at the end of March that will determine their relationship in financial services and future rules that were not covered by the trade deal.

Bailey told a Treasury select committee that the EU's demand that the UK submit to its finance regulations was "problematic".

The UK's finance service sector is seeking an "equivalency" arrangement, which would mean free access to EU share-trading markets in European cities such as Paris, Frankfurt and Milan.

"If the price is too high then we can't just go for it whatever," Bailey told the committee. "I strongly recommend that we don't become a rule-taker. If the price of that is no equivalence then I am afraid that will follow."

On Monday, in the first day of finance trading since Brexit was fully implemented, City of London share trading worth 6 billion euros ($7.1 billion) quickly shifted to rival European market exchanges.

Many business leaders have been deeply critical of the government's handling of Brexit and have questioned whether it ever had a clear plan in place for the finance sector after departure from the bloc.