Theresa May: Britain will “set our own rules and forge new dynamic trading agreements”
In a speech to City leaders at Guildhall yesterday evening, Prime Minister Theresa May said, “As we leave the EU, we will also use the strength and size of our economy to lead the way in getting out into the world and doing new business with old allies and new partners alike. We will use the freedoms that come from negotiating with partners directly, to be flexible, to set our own rules and forge new and dynamic trading agreements that work for the whole UK.”
However, she added, “We can’t deny that there have been downsides to globalisation in recent years, and that in our zeal and enthusiasm to promote this agenda as the answer to all our ills we have on occasion overlooked the impact on those closer to home who see these forces in a different light.” She denied that the Government was pursuing an anti-business agenda, saying, “Asking business to work with government to play its part is profoundly pro-business, because it is fundamental to retaining faith in capitalism and free markets.”
Sources: Telegraph, The Times
FT: EU negotiators want draft Brexit deal ready by autumn 2018, Commission open to transitional arrangements
According to the Financial Times, which cites senior European officials, the EU’s negotiating team are looking to have a draft of the ‘withdrawal agreement’ with the UK, envisaged under Article 50 of the EU Treaty, ready by autumn 2018 at the latest. This would leave at least six months for its ratification, thereby allowing the UK to formally exit the EU in 2019. The article notes that the European Commission is recommending that no detailed trade talks between the UK and the EU-27 take place before the draft Article 50 deal is ready, but is envisaging to include transitional arrangements in the withdrawal agreement.
Separately, a leaked memo, seen by The Times, states that, “Individual departments have been busily developing their projects to implement Brexit, resulting in well over five hundred projects, which are beyond the capacity and capability of government to execute quickly,” adding; “Every department has developed a ‘bottom-up’ plan of what the impact of Brexit could be — and its plan to cope with the ‘worst case’. Although necessary, this falls considerably short of having a ‘government plan for Brexit’ because it has no prioritisation and no link to the overall negotiation strategy.” A No 10 spokesman spokesman said, “This is not a government report.”
Source: The Financial Times
Government makes maintaining “liberal access” to European aviation markets a “top priority”
In a joint statement yesterday, Brexit Secretary David Davis, Transport Secretary Chris Grayling, and Airlines UK said, “Market access remains a top priority, and we want to make sure we have liberal access to European aviation markets. We will also work closely to explore new opportunities for further liberalisation. We are clear that Brexit provides greater freedom to seek new agreements between the UK and some third countries. This includes looking at possible bilateral agreements to strengthen economic and cultural ties even further with countries such as the US and Canada.” Ministers have also assured the aviation industry they will “give as much early certainty to the sector as possible.”
Source: Press Association
Leaked memo reveals Irish Government’s approach to maintaining strong UK-EU ties post-Brexit
The Irish Times reports on a leaked memo discussed last week at the Irish Cabinet subcommittee on Brexit that outlines the approach Ireland must take to ensure a close future alliance between the UK and the EU. It says, “It will be important to identify those member states that, like Ireland, are likely to favour a future status for the UK as close as possible to the current arrangements, and those member states which might not be unduly concerned if a hard Brexit were to happen.” The memo outlines France and other Mediterranean countries as those least likely to be concerned by a “hard Brexit.”
Source: The Irish Times
Germany should prioritise integrity of single market over economic ties with UK, leading German industry group says
Markus Kerber, managing director of the Federation of German Industries (BDI), told Reuters in an e-mailed statement, “It must be a priority for the German government and the EU to defend the single market as a crucial European project…because the business ties of the German economy with the remaining EU countries go far beyond the economic relations between Germany and Britain.”
Source: Reuters
CIPD finds limited business appetite for leaving UK following Brexit, as Hays’ reports continued business confidence amid wage pressures
A survey by the Chartered Institute of Personnel and Development (CIPD) found that, while 3% of employers had either decided to or were evaluating whether to move their operations out of the UK as a result of Brexit, three quarters have ruled out such a move, and only 15% are preparing for any loss of access to EU migrant labour.
A separate survey by the recruitment firm Hays’ showed business confidence in either increased or unchanged activity in the next twelve months is at 93%, a 1 percentage-point fall since the same question was asked in June before the referendum vote. It also found that there had been a slowdown in professionals’ wage growth to 1.8% this year compared to last year’s prediction of 2.8%.
Sources: The Financial Times, The Daily Telegraph
UK “opts-in” to new Europol regulation
The UK government will “opt-in” to new Europol regulation, policing minister, Brandon Lewis said, “The UK is leaving the EU but the reality of cross-border crime remains. Europol provides a valuable service to the UK and opting in would enable us to maintain our current access to the agency, until we leave the EU.” Rob Wainwright, the director of Europol, added: “Opt-in’ means UK will remain a full member of Europol after revised regulations take effect May 2017 and until Brexit.”
Sources: The Independent, The Guardian
David Davis agrees to monthly Brexit meetings with London Mayor
Politico reports that Brexit Minister David Davis is to hold monthly meetings with London Mayor Sadiq Khan on the “challenges and opportunities” for London once the UK leaves the EU. Davis said, “The mayor is London’s elected representative and it’s important that the capital’s voice is heard. So Sadiq and I have agreed to meet regularly and exchange views as the UK shapes its negotiating strategy, and we are also engaging with the Greater London Authority more broadly.” Meetings are expected to take place both before and after the triggering of Article 50, and will be linked to the Joint Ministerial Committees with the devolved administrations.
Sources: Politico, City AM
Two-speed approach planned on EU defence cooperation as UK urges increased defence spending
A proposal for ‘Permanent Structured Cooperation’ (PESCO) on EU defence was approved at a meeting of European foreign ministers yesterday, paving the way for joint procurement and easier deployment of the EU’s rapid reaction force. A two speed approach is planned, allowing deeper defence integration to go ahead for member states that that want it without the approval or participation of others. Federica Mogherini, the EU’s High Representative for Foreign Affairs, said that she wanted to make the EU a “superpower that believes in multilateralism and cooperation… It is not about an EU army. It is about a European Union security and defence that becomes more credible and more effective than it is today.” Michael Fallon, the UK Defence Secretary, approved the plans but said, “Rather than planning an expensive new headquarters or dreaming of a European army, the best approach to the Trump presidency is for European countries to step up their own defence spending.” He added, “Britain meets the 2% commitment and other European countries need to increase their own defence spending.”
Sources: Politico, The Irish Times
Sarkozy: EU must draw consequences of Trump’s election and adopt its own ‘Buy European Act’
Former French President Nicolas Sarkozy, who is hoping to win the nomination for centre-right candidate in next year’s presidential election, told TF1, “France and Europe need to immediately draw the consequences of Donald Trump’s arrival…Europe can no longer be weak, Europe can no longer be naïve. I demand the immediate adoption of a ‘Buy European Act’, just like the US has its ‘Buy American Act’…When the US awards a public procurement contract and chooses a company, if the company is a foreign one, it is obliged to manufacture at least 50% [of the ordered product] in the US.”
Open Europe’s Pieter Cleppe was interviewed by Deutsche Welle discussing Trump’s election, saying “the fact that Trump and his allies have raised doubts about US protection of the Baltics raises the UK’s value as a military power in Europe, something which it can use in Brexit talks”.
Separately, an editorial in Le Monde denounces the “simplistic” interpretation by protectionist parties in Europe, that the successes of Trump and Brexit are “the first signs of the end of globalisation.” The author argues that an “anti-globalisation” movement, including the introduction of prohibitively high customs tariffs on Chinese or Mexican imports, “would provoke a commercial war, ending in the loss of tens of millions of jobs in America. And it would be the same story in the EU.”
Sources: Le Monde, TF1, Bloomberg
Steinmeier poised to become new German president after winning backing of Merkel’s party
German Chancellor Angela Merkel’s CDU/CSU conservative bloc agreed yesterday to back Frank-Walter Steinmeier, a senior member of the centre-left SPD currently serving as Foreign Minister, as Germany’s next president after the incumbent Joachim Gauck announced a few months ago that he would not seek a second term. The German president, a largely ceremonial post, is indirectly elected by the Federal Convention – a body comprised of MPs and delegates of the 16 state parliaments. The election is scheduled for 12 February 2017. European Parliament President Martin Schulz has been mentioned as a possible successor of Steinmeier as German Foreign Minister.
Sources: The Wall Street Journal, Reuters
Erdoğan hints at Turkish referendum on EU accession talks next year
Turkish President Recep Tayyip Erdoğan used a televised speech yesterday to suggest that his country could hold a referendum next year on whether to continue accession talks with the EU. He said, “Let’s wait until the end of the year and then go to the people. Let’s go to the people since they will make the final call. Even Britain went to the people. Britain said, ‘Let’s exit’, and they left.”
Source: Reuters
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