Brexit News for Friday 24 March

Brexit News for Friday 24 March

Dutch MPs follow Michel Barnier’s call for special trade deal with Britain

Dutch MPs followed the lead set by the EU’s chief Brexit negotiator Michel Barnier yesterday and urged the bloc to seal a unique and far-reaching trade deal with Britain. In a second massive boost to Theresa May’s negotiating hand the influential Advisory Council on International Affairs (AIV) said only an ambitious and bespoke pact with the UK will suffice.It advocated a “CETA plus” model for future relations, which would incorporate large parts of the trade deal Brussels recently signed with Canada plus extra special clauses to ensure deeper ties with Britain. – Daily Express

The German Finance minister calls to keep disadvantages for Britain “as small as possible” in Brexit

German Finance Minister Wolfgang Schaeuble said on Friday that the European Union was trying to limit the negative effects of Brexit for Britain but stressed that countries wanting to get the benefits related to the bloc had to make commitments, too. “We need to find a fair path – if Britain still wants to have good access to the single market, it has to take on the corresponding commitments and if it doesn’t want that, then there will be a separation – that’s a shame for Britain,” Schaeuble told Deutschlandfunk radio station. “We’re trying to keep the disadvantages as small as possible but it’s clear that the rest of Europe must not be contaminated by it,” he said. – Reuters

Juncker calls for “friendly” and “fair” negotiations over Brexit “tragedy”

Brexit is “a failure and a tragedy”, European Commission president Jean-Claude Juncker has said. The EU’s most senior civil servant promised that Brussels will approach the negotiation of Britain’s withdrawal in a “friendly” and “fair” way, but warned that European institutions were not “naive” about the process. He confirmed that the UK will be presented with a bill for leaving, but insisted that this did not represent a “punishment”, but merely the settling of commitments made by the UK. – PA

London attack won’t delay start of Brexit process says PM’s spokesman

Britain’s plan to begin the formal process of leaving the European Union on March 29 will not be delayed by an attack on parliament which left four people dead, Prime Minister Theresa May’s spokesman said on Thursday. The attacker who killed three people near the British parliament before being shot dead was British-born and was once investigated by MI5 intelligence agents over concerns about violent extremism, May said on Thursday. Asked by a reporter if the triggering of Article 50 of the EU’s Lisbon Treaty might potentially be delayed by the attack, May’s spokesman said: “What the prime minister was equally clear on was that Westminster is getting back to business today, the country will do so and there is no intention to delay.” – Reuters

EU fishing fleet demands continued access to UK seas

Fishing groups from nine EU countries have demanded continued access to UK waters after Brexit and warned that UK fish supplies could otherwise lose tariff-free access to the continent. The fishing associations from coastal European countries met in Brussels on Wednesday to form an alliance ahead of Brexit talks, with all agreeing that access to fish in UK waters was a “priority”. EU countries rely heavily on access to UK seas, with some vessels catching up to 80 per cent of their fish there. UK fishing groups and politicians have demanded that Britain remove foreign vessels after Brexit to improve catches for UK fishermen. – FT (£)

  • May ‘finally set to block EU access to British fishing waters if Brexit talks fail’ – Daily Express

>Alan Hastings on BrexitCentral today: The Government must commit to taking back control of Britain’s fisheries

EU birthday sees leaders groping for unity on Brexit

European leaders hope to paper over simmering disputes when they meet in Rome on Saturday to celebrate 60 years of union, but with Britain filing for divorce next week, the mood will be sombre and unity under strain.Theresa May, who next Wednesday will launch a two-year countdown to Brexit, will be conspicuous by her absence in Rome, as the other 27 EU leaders try to put aside differences for fear the British prime minister could exploit their disunity to cut a sweet deal they fear would encourage others to quit. At the very moment the Islamic State attack on cosmopolitan London was again highlighting risks Europeans face in common, EU Brexit negotiator Michel Barnier was warning Britain not to try to barter security cooperation for better trade terms nor divide the 27, whose joint approval it will need to forge a new treaty. – Reuters

Poland vows to veto plan for EU future unless it includes more power back from Brussels

Storm clouds are already gathering over the European Union’s planned 60th birthday celebrations after Poland said it would veto any plan for the bloc’s future which does not include repatriation of powers from Brussels. Warsaw continued its recent bitter war of words with eurocrats as it threatened to veto the proposed Rome Declaration, which is meant to pave the way forward for the project after Brexit. Prime minister Beata Szydło said she would not hesitate to vote down the document if it does not match Poland’s priorities as her country takes an increasingly hard line towards European integration. – Daily Express

Deutsche Bank signs up new London HQ in show of faith in Brexit Britain

Deutsche Bank has chosen a new office for its London headquarters, signalling a vote of confidence in Britain’s capital despite the country’s decision to leave the European Union. The German lender has entered into exclusive negotiations with developer Land Securities over a 25-year lease on a new building to be constructed at 21 Moorfields in the City of London, according to a memo sent to staff on Thursday and seen by Reuters. “The move underlines the bank’s commitment to the City of London and the importance it attaches to being an employer of choice in the capital,” the memo, sent by Garth Ritchie, Deutsche Bank’s UK chief executive and head of its corporate and investment bank, said. Deutsche Bank, which employs around 7,000 people in London, is due to begin transferring staff to the new building, which will house its corporate and investment bank, in the second half of 2023. – Reuters

Pound sterling jumps to one month high after UK retail data sales surge as consumers shrug off Brexit fears

Stronger-than-expected retail sales data helped push sterling to a one-month high against the dollar on Thursday. According to figures from the Office for National Statistics (ONS), sales volumes grew by 1.4 per cent in  February, well ahead of the 0.4 per cent growth the City consensus had anticipated. Sterling jumped to $1.2528 on the news, its highest since late February and was still trading above $1.25 at market closing time in London. – The Independent

  • The pound will ride out Brexit to return to its safe harbour status – Paul Nicholson for City A.M.

Ed Conway: Bankers scent a bonfire of the regulations

When Theresa May triggers Article 50 next week our regulators will be at a crossroads. Do they leave financial rules aligned with EU standards to ensure continued access to the single market or loosen them to turn the City into Singapore-on-Thames? No prizes for guessing which version the bankers will be pushing. How ironic that two votes on either side of the Atlantic, both intended as a body blow to the establishment, have actually given the big banks the greatest opportunity in the history of lobbying. If that comes as a surprise, I’m afraid you weren’t reading the small print. The whole point of multilateralism — of a world where decisions are taken jointly rather than individually — is to ensure that rules work, that banks cannot game them, that the broader financial system is protected. – Ed Conway for The Times (£)

 Andrew Lilico: How much will the Brexit divorce cost?

When Article 50 is triggered next Wednesday, it would seem the EU is going to ask the UK to pay a “divorce bill” of up to £50 billion. So far, commentators have been mulling over what the EU is said to be asking for, and the political viability of either side backing down. But what about the rights and wrongs of the said demand: ought we have to pay anything, and if so, what? Presumably, the simplest set of payments to consider are those we want to pay because we get something in return. For example, if we want to continue to fund research via certain EU programmes, we’ll continue to pay for it. That isn’t a “divorce bill” per se, but if someone found it politically convenient to dress it up as such, we might either find it politically useful – or damaging – to go along with. –  Andrew Lilico for CapX 

Peter Jones: What it really means to cross the Rubicon (Theresa May’s about to do it)

Last week many commentators drew on the Ides (15th) of March, the anniversary of Julius Caesar’s death in 44 BC, to reflect on the signing of Article 50 and Julius Caesar’s famous cry ‘The die is cast’ (iacta alea est) in 49 BC, when he crossed the River Rubicon into Italy and started the civil war against Pompey. But they got it wrong: it does not mean ‘no turning back’. Whatever the rights and wrongs of the Caesar-Pompey power struggle, Caesar knew the consequences of this moment. Our sources describe the build-up. Caesar is camped with his troops in Ravenna. Messages are flying back and forth between him and Pompey in Rome. When his final offer is turned down, he secretly sends a force ahead to the Rubicon and spends the rest of the day without a care in the world — enjoying a few local shows, checking out his planned gladiatorial school, and entertaining guests for dinner. – Peter Jones for The Spectator 

Brexit in brief

  • Europe should follow Britain’s lead on refugees – The Spectator Editorial
  • Brexit will overburden civil service, warns spending watchdog – The Guardian 
  • Rival anti-Brexit groups row over whether March for Europe protest is cancelled or not – The Independent
  • Juncker is now the hardest Brexiter there is – Hugo Rifkind for The Spectator
  • Britain ‘should still be bound by EU laws after Brexit’, claim European lawmakers – Daily Express
  • Giles Fraser and Hugo Rifkind on Brexit claims – BBC
  • Sir Richard Branson calls for second EU referendum based on ‘real facts’ – Independent
  • Scottish parliament postpones vote on second referendum – The Guardian
  • London attack a reminder of fears for post-Brexit security cooperation – Reuters
  • Angela Merkel ‘confident’ no more countries will ditch the European Union – Daily Express
  • Hundreds of UK Brexit negotiators jobs still vacant – IBT
  • Climate change helped cause Brexit, says Al Gore – The Independent

And finally… Friends reunited? Boris Johnson and David Cameron spotted having dinner in New York

As far as political uncouplings go, the breakup of David Cameron and Boris Johnson was a fairly spectacular public affair. But it seems they might have buried their Brexit hatchet and resumed the schoolboy friendship split asunder by European tensions – thanks to a shared dinner in New York city on Thursday night. The pair were photographed on the streets of Harlem after dining together at the popular Red Rooster restaurant. – The Guardian