The deal could allow British banks to have access to Europe’s financial services

British financial firms will be allowed privileged access to European Union markets in return for payments to Brussels under plans being considered by countries including Germany.

Government figures in EU capitals are examining ways to make a wide-ranging trade deal contingent on Britain continuing to make substantial payments. “If Britain wants to trade budget contributions for access to [the] single market for the City, there will be many takers,” one European diplomat said. This is the first sign that some EU nations are thinking creatively about how to maintain links after Brexit.

It comes in spite of the insistence by Michel Barnier, chief Brexit negotiator for the EU, that the bloc can offer only a limited, Canadian-style trade deal excluding financial services if Britain leaves