Fox hints that the UK will leave the EU customs union
In a speech at the WTO, Secretary for International Trade Liam Fox said, “The UK is a full and founding member of the WTO. We have our own schedules that we currently share with the rest of the EU. These set out our national commitments in the international trading system. The UK will continue to uphold these commitments when we leave the European Union. There will be no legal vacuum. But this will not stop us pursuing a more liberalised trade agenda.” The final line in particular is seen as hinting that the UK will leave the customs union when it leaves the EU.
Separately, the WTO yesterday released updated forecasts for UK growth, suggesting it would slow next year but that the UK will avoid falling into a recession. It also said that global trade will expand at the slowest rate next year since 2009.
Source: Department for International Trade
Defence Secretary says UK opposes EU plans for military integration but stops short of reiterating veto threat
Defence Secretary Michael Fallon said ahead of yesterday’s meeting of EU defence ministers, “We are going to continue to oppose any idea of an EU army or EU army headquarters. Nato must remain the cornerstone of our defence.” However, when pressed on whether this meant the UK trying to veto the proposals he simply said, “there is no majority here [at the meeting] for an EU army…There are a number of other countries who believe with us that that cuts across sovereignty of individual nation states.” However, Jens Stoltenberg, NATO Secretary General, said, “There is no contradiction between stronger common European defence and a strong NATO: each reinforces the other.” Ahead of the meeting, a number of governments circulated ‘non-papers’ laying out their views. Finland called for the EU to draw up a plan for joint military capabilities as it has a “need for strategic autonomy” and a need to “establish a pragmatic partnership in security and defence”. Italy’s proposal called for the creation of a “European force” along with a permanent military HQ.
Sources: PA, EUObserver, EUObserver 2, El País
Sarkozy says he will offer the UK the opportunity to stay in a “New Europe” if he wins Presidency
Nicolas Sarkozy, a French presidential hopeful for the Republican party, told the Financial Times, “I would tell the British, you’ve gone out, but we have a new treaty on the table so you have an opportunity to vote again… But this time not on the old Europe, on the new Europe. Do you want to stay? If yes, so much the better. Because I can’t accept to lose Europe’s second-largest economy while we are negotiating with Turkey over its EU membership. And if it’s no, then it’s a real no. You’re in or you’re out.” Sarkozy also issued a warning to Turkey, saying, “Maybe it’s time to tell Turkey that its place is in Asia.”
Source: The Financial Times
Corbyn to offer staunch defence of unlimited immigration
Labour leader Jeremy Corbyn will give his speech at the Labour Party Conference today and is expected to offer a staunch defence of unlimited immigration, saying, “A Labour government will not offer false promises. We will not sow division or fan the flames of fear. We will instead tackle the real issues of immigration – and make the changes that are needed.” Ahead of the speech a Corbyn spokesman said, “We are not concerned about numbers. It is not our objective to reduce the numbers, to reduce immigration.” He is expected to announce a “migrant impact fund” to help those low paid workers impacted by migration. Reports also suggest Corbyn will voice support for active government measures to try and push up wages across the EU.
Source: The Guardian
Verhofstadt stresses European Parliament willing to veto Brexit deal, but says he wants an agreement which makes all sides “comfortable”
Liberal MEP Guy Verhofstadt, who has been appointed the European Parliament’s representative on the Brexit negotiations, has insisted that the Parliament has “more power” than any national parliament and would be ready to reject any deal between the UK and the EU which it doesn’t agree with. However, he stressed he holds no animosity towards the UK, saying, “Brexit is also an opportunity because maybe that could be the starting point or so to simplify our different relationships we have outside the union, as it is necessary inside the union.” He added, “Instead of making this a painful divorce that weakens Europe and Britain, let’s try this time to put in place a system where everybody feels…comfortable.”
Other European voices also gave their views on the timing and negotiating points of Brexit. Economics Commissioner Pierre Moscovici said that waiting until after the first quarter of 2017 to trigger Article 50 “might be too long”, adding, “I think they’re [the UK Government] wise enough to judge when the time comes.” Romanian Deputy Foreign Minister Cristian Badescu also said yesterday, “If they [the UK] want to keep a certain degree of access to the single market, based on the model of Switzerland or Norway, they’ll have to pay certain costs…Access of EU citizens to the U.K. labour market is one of them. They’ll also have to pay certain funds.”
Sources: The Financial Times, Bloomberg, Bloomberg 2
“All-Ireland” talks planned ahead of Brexit, while Sturgeon says independence is on the table
Irish Prime Minister Enda Kenny confirmed yesterday that, in November, he will host “all-island, all-Ireland conversation” around the impact of Brexit, involving business people, members of civic society and political parties. Kenny also suggested he believed the negotiations would “run for quite some time” and “might not be as straightforward or as short term as many people think.”
Elsewhere, speaking at the Institute of Directors conference yesterday Scottish First Minister Nicola Sturgeon stressed that “no option can be off the table for Scotland”, including a second independence referendum. She added, “It would be helpful to know more about the U.K. government’s thinking,” with regards to Brexit. Sturgeon said that, while she was proud Scotland voted for Remain, “I can’t ignore the fact that even in Scotland, a million people voted to leave,” stressing that the Government has to do more to tackle feelings of “inequality” and “powerlessness”.
Sources: PA, Bloomberg
Commission to unveil new push to harmonise corporate tax in the next few weeks
Economics Commissioner Pierre Moscovici said yesterday, “I’m going to propose a new CCCTB [Common Consolidated Corporate Tax Base] in the next few weeks…But I’m not expecting an easy process.” The previous proposal has been on the table since 2011 with little progress made. Separately, Moscovici also said that the EU’s budget deficit rules are “too complex”.
Sources: Politico Playbook, Politico, L’Opinion
Johnson suggests he will support Turkish accession to the EU
During his visit to Turkey, Foreign Secretary Boris Johnson suggested he would help Turkey in its accession talks with the EU. Johnson also said, “What I hope for is a jumbo free trade deal between the United Kingdom and Turkey,” following Brexit.
Source: The Daily Telegraph
Firms use Brexit as a pretext for staff relocation
A new report by executive recruitment firm DHR International argues that some firms are using Brexit as a “handy excuse for getting on [with] the unpleasant task of moving jobs outside London”. The report added, “Firms were already making plans to move middle and back office roles out of London in order to cut costs, but now Brexit has acted as a catalyst for radical surgery, providing firms with the impetus to act on these plans immediately.”
Source: PA
Estonian Parliament rejects referendum on EU migration policy
DPA reports that the Estonian Parliament voted against holding a national referendum on the EU’s planned quota system for resettling migrants. Out of 101 MPs, 51 MPs rejected a referendum while 14 MPs were in favour and 4 MPs abstained. Meanwhile, Hungary’s referendum on the EU migration quota will take place on 2nd of October.
Source: Deutsche Presse Agentur
German EU Commissioner strongly criticised Cameron’s EU referendum campaign
Germany’s EU Commissioner Günther Oettinger, and senior member of Angela Merkel’s CDU party, said during an event in Brussels yesterday, “We have to accept the democratic decision [of the UK to leave the EU] and the shit campaign of [David] Cameron.”
Source: Deutsche Presse Agentur
EU scheme to give bank cards and 30 euros per month to refugees in Turkey
The EU has launched a €350m aid plan to distribute pre-paid bank cards to refugees in Turkey, using EU funds administered and supported by the Turkish Red Crescent, the World Food Programme, and Turkish authorities. The scheme, which forms part of the border deal reached with Turkey in March, was launched on Monday and will see monthly payments of about €30 to each card to help refugees pay for food, clothes, housing and education for children of school age. Le Figaro quotes a Commission source as saying, “Today we launch the most important humanitarian project ever supported by the EU. It will provide a source of income for a million Syrian refugees.” Christos Stylianides, Commissioner for Humanitarian Aid and Crisis Management, was also quoted stating the benefits for the Turkish economy, “The money will be spent in local shops, benefitting local businesses and encouraging social cohesion between refugees and Turkish citizens.”
Source: Le Figaro
The post Fox hints that the UK will leave the EU customs union appeared first on Open Europe.