The U.K. cannot "cherry pick" the parts of the single market it wants to keep when it quits the European Union, the EU's vice-president for the euro and social dialogue told CNBC on Saturday.
"It is really for the U.K. to decide. It comes with conditions with respect for freedoms and with respect for EU rules and regulations. There cannot be cherry picking and the European Commission has been very clear about it," Valdis Dombrovskis told CNBC, speaking from the sidelines of Italy's Ambrosetti forum on economics.
He said the discussion was premature. "(The) U.K. really needs to make some strategic decisions on its future relations with the EU – mainly (regarding whether to be) within or outside the (EU) internal market. Negotiations have not even started yet because (the) U.K. hasn't filed formally," Dombrovskis told CNBC.
He said the U.K.'s decision regarding this would provide some clarity to the financial sector, particularly with regard to so-called passporting rights. At present, EU passporting rights mean U.K. businesses can provide financial services anywhere in the 28-country bloc while being based and regulated in the U.K.
"Of course within the internal market it is simpler, because there are passporting rights. If it is outside the internal market it means more far reaching changes for the financial markets," Dombrovskis told CNBC.