The battle line seem to have been drawn as the UK government insists on keeping two major EU agencies in the country

Contrary to previous report credited to Brussels that EU leaders are perfecting plans to move two major European banking and medical agencies, based in London to other EU member state capital, the British government have come out to say that both agencies could stay in Britain post-Brexit.

The counter claim was made by Brexit Secretary David Davis when he announced that the agencies in question is open for negotiation, a move which contradicts the claim earlier credited to the EU for their relocation.

According to a spokeswoman for the Brexit department: “No decisions have been taken about the location of the European Banking Authority (EBA) or the European Medicines Agency (EMA), these will be subject to the exit negotiations.

“As part of these negotiations the government will discuss with the EU and member states how best to continue cooperation in the fields of banking and medicines regulation in the best interests of both the UK and the EU.”

Thus the Brexit Secretary is making moves to include the agencies to the wider Brexit talks in readiness to shift grounds where possible just to keep them in the UK.

The Government spokeswoman added: “It would not be appropriate to prejudge the outcome of the negotiations.”

During last month’s draft plan for negotiations by Brussels it was said that preparations should be made to transfer the agencies to one of the remaining 27 nations after the UK leaves.

An EU official previously stated: “The EMA and EBA both have to go to a member state. There are many interested member states. There is a broad understanding that it is something that you need to move quickly on.”

The EMA boasts 900 highly skilled staff and is responsible for the “scientific evaluation, supervision and safety monitoring of medicines developed by pharmaceutical companies for use in the EU”. While the EBA, which was set up in 2011, has 159 staff at its London office, also at Canary Wharf.

Meanwhile, Mr Tusk’s draft negotiating guidelines he made clear Britain has no say, and added: “Arrangements should be found to facilitate their transfer.”

Copenhagen, Amsterdam, Milan, Stockholm, Barcelona and Dublin are all bidding to host the medicines agency and there may eventually be up to 20 applicants.

Currently Frankfurt and Paris are in the running to host the EBA.