For the first time since Brexit, the European Union and the United Kingdom have taken a first step towards agreeing rules for banks, insurers and other financial services. This could, in the long run, help London City, a key hub in the financial world, to regain access to the EU’s internal market.

When the British left the EU, there was little or no agreement on financial services. This is particularly disturbing in London. Several banks have already moved entirely or partly to the mainland. Billions of dollars in investment traffic went from London to Amsterdam.

Brussels and London have now agreed a framework for cooperation in financial regulation and supervision. They also agree on a joint body in which they will discuss rules and exchange information.

“There are still a number of formal steps to be taken before these agreements can be signed, but it is expected that this can be done quickly,” the UK Treasury Department says in a statement.