The City of London has relinquished hopes that the U.K. will retain full access to the European single market for goods and services, the Financial Times reported Thursday.
Financial sector and government officials have been working over the summer to draw up a plan for the U.K.’s exit from the European Union (EU). Financiers have concluded that a Norway-style deal, in which the U.K. leaves the EU but retains access to the single market, is untenable, according to the Financial Times, which cited unnamed people involved in negotiations.
Norway contributes to the EU budget and accepts free movement of people in exchange for access to the single market. As an alternative, the City is looking to imitate and build on Switzerland’s deal with the EU, where only some industries have full access to the single market, the newspaper said.
Most Londoners voted to remain in the EU in the June 23 referendum and the banking industry was seen as heavily in favor of staying in the bloc.