Keywords: Brexit; Article 50 TEU; Financial Markets; Passporting; European Supervisory Mechanism; European Banking Supervision; European Banking Union.
The United Kingdom's vote to leave the European Union is threatening the pre-eminence of London as the most relevant financial centre in Europe. In particular, the City has benefited from European legislation, by either the right of establishment or the so-called "passporting mechanism". In the light of the different economic interests of both sides, it will take longer than the two-years term referred to in Article 50 TEU to reach a mutually acceptable agreement. A tailor-made agreement - as outcome of the negotiations - will have to take into consideration both the outcome of the 2016 referendum and the political necessities of European regulators. This article explores the possible outcomes of Brexit in the contest of European financial markets. After an analysis of the key-issues of negotiations in the sector of financial markets supervision, the dissertation focuses on the future role of the United Kingdom in the implementation of post-crises reforms, regarding both the whole European Union and the Eurozone. The conclusion of the article is dedicated to the democratic deficit of the new architecture of European financial markets supervision and to the possible upcoming risks in terms of legitimacy of the European project.