Brexit Update

An update from Missy:


Brexit Update:

Over the weekend, and late last week, there have been a couple of interesting stories about Brexit, the main one’s are summarised below.

  1. Theresa May is due to outline her plans for Brexit on Tuesday. A number of media outlets are reporting sources that say May will be going for what has been termed ‘hard brexit’. More realistically it is expected May will indicate that she will want to retain membership of the single market, but will be willing to walk away from it if the EU do not concede on free movement.
  2. The above has been complimented by an interview the Chancellor, Philip Hammond, has given to a German newspaper, where he stated that if the EU punishes the UK for leaving then the UK will do whatever it takes to remain competitively and to attract business to the UK. He has suggested that could include cutting taxes to encourage businesses to move to the UK.
  3. At the end of last week a story appeared where the EU’s Brexit negotiator admitted that the EU will be the losers if the UK leave the Single Market, and he said that the EU needs to look at a deal where access to the financial centre in London is kept as open as possible. Financial Services is one of the UK’s biggest exports to the EU, and this is a worry for many in London.
  4. The presidency of the EU Council rotates through all of the member states every 6 months, and it has just been passed to Malta. Last week the PM of Malta stated that the UK will have to accept free movement if they want access to the Single Market – this is slightly different as most have stated the free movement is a condition of membership of, not access to, the single market. This is re-iterating comments that have come out of Germany in recent weeks from the leader of the SPD – the coalition partner of Merkel’s CDU party.
  5. I believe a decision from the Supreme Court is expected tomorrow.

And PK has supplied this link: Brexit: UK ‘could change economic model’ if single market access denied

The UK may be forced to change its “economic model” if it is locked out of the single market after Brexit, Chancellor Philip Hammond has said.

Mr Hammond said the government would not “lie down” and would “do whatever we have to do” to remain competitive.

Labour’s Jeremy Corbyn said his comments sounded like “a recipe for some kind of trade war with Europe”.

Having so far refused to offer a “running commentary” on her plans, Prime Minister Theresa May is expected to spell out the most detail so far of her Brexit strategy in a speech on Tuesday.

Reports have suggested she will signal pulling out of the EU single market and customs union, although Downing Street described this as “speculation”.

In an interview with German Welt am Sonntag newspaper, Mr Hammond said he was “optimistic” a reciprocal deal on market access could be struck, and that he hoped the UK would “remain in the mainstream of European economic and social thinking”.

“But if we are forced to be something different, then we will have to become something different,” he said.

“If we have no access to the European market, if we are closed off, if Britain were to leave the European Union without an agreement on market access, then we could suffer from economic damage at least in the short-term.

“In this case, we could be forced to change our economic model and we will have to change our model to regain competitiveness. And you can be sure we will do whatever we have to do.

Leave a comment

5 Comments

  1. Gezza

     /  16th January 2017

    Remember the colonies !

    Reply
    • Pete Kane

       /  16th January 2017

      Including ‘death or Liberty”, Mr G?

      Reply
      • Gezza

         /  16th January 2017

        I don’t see why not. If they’re prepared to let bygones be bygones. Might have to rethink whether they celebrate Independence Day. That could rankle a bit with the redcoats.

        Reply
  2. Chris

     /  16th January 2017

    So little old NZ could once again become the bread basket of the UK??

    Reply
  3. Alan Wilkinson

     /  16th January 2017

    Europe getting tipped out of the cot at last. Grow up fast or die:
    http://www.reuters.com/article/us-europe-baby-commentary-idUSKBN14W2X1

    Reply

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