Gibraltar ‘not a bargaining chip’ in Brexit talks… Gibraltar says it will not be used as a bargaining chip in negotiations over Brexit. Its chief minister Fabian Picardo says the message that “we want to stay British” needs to be clear in every capital of the European Union. In draft Brexit negotiating guidelines, the EU said any decisions affecting Gibraltar would be run past Spain. Theresa May has said the UK is “committed” to the territory and its sovereignty is not on the table. Gibraltar has accused Spain of manipulating the European Council for its own political interests. Mr Picardo said: “Let us be very clear and let the message be clear in Madrid, in Brussels and in every other capital of the European Union. “Gibraltar is not a bargaining chip in these negotiations. Gibraltar belongs to the Gibraltarians and we want to stay British.” – BBC News > Sir Michael Fallon: Gibraltar is going to be protected all the way – BrexitCentral’s YouTube Lord Howard accused of ‘sabre-rattling’ over Gibraltar – BBC News Tory grandee’s war cry over Gibraltar falls on deaf ears – The Times (£) Fraser Nelson: Why Theresa May was right not to bring up Gibraltar It was quite right for Theresa May to not mention Gibraltar in her Article 50 letter – why should the future of its people be in question in our negotiations? To do so would be to introduce a dangerous notion: that Gibraltar and its people were somehow a bargaining chip. Of course, the press will have fun with the idea that the Prime Minister forgot Gibraltar but far more plausible is Tim Shipman’s story in the Sunday Times today that the idea of mentioning it in the Brexit letter was raised several times – and rejected. That the EU has brought Gibraltar up as part of the Brexit deals right now is strange and shows a worrying naivety on its part. Worse still if it’s doing this as a negotiating ploy, a gambit intended to scare the Brits – only to be dropped later in return for some concession. It’s the wrong button to press with Brits, who are rather sensitive about the protection of fellow citizens. Tories, in particular, don’t need much provocation to issue reminders of the lengths we once went to to defend the Falkland Islands which have less than a tenth of Gibraltar’s population. – Fraser Nelson for The Spectator …as Spain appears to back EU membership for an independent Scotland Spain has abandoned plans to stop an independent Scotland from joining the EU amid an escalating row with Britain over the future of Gibraltar. Alfonso Dastis, the Spanish foreign minister, said his Government will not block a future Scottish EU membership bid, giving a boost to Nicola Sturgeon. It came as Sir Michael Fallon, the Defence Secretary, suggested that Britain is ready to go to war to defend the sovereignty of Gibraltar. He vowed to go “all the way” to protect the territory. – Daily Telegraph Brexit trade deal with Britain must be linked to security, EU warned… Sir Michael Fallon said it is “very important to link trade and security” in the negotiations with the European Union over the UK’s future deal with the bloc. The Defence Secretary said he was proud of the link and insisted the UK would go on “playing our part” in the security of the continent, but stressed some elements of that cooperation would require a new deal. He claimed it was not a “bargaining process” but that all sides would be “worse off” if there was not a deal. Leaked minutes of a Cabinet committee meeting revealed the extensive discussions about how the UK’s security and defence expertise could be used to help secure a deal with Brussels. – The Independent …as May flexes UK’s military muscle with Saudi visit Efforts to underline Britain’s importance in protecting European security will be highlighted by the prime minister’s visit to Saudi Arabia tomorrow. Theresa May was accused of blackmail last week for linking an EU trade deal to continued shared co-operation against crime and terrorism in her letter starting the Article 50 process. Yesterday ministers defended what Mrs May’s senior aides refer to internally as a strategy to exploit in negotiations Britain’s “security surplus” with the rest of the bloc. The prime minister flies to Jordan today before travelling to Saudi Arabia on a visit that will attempt to increase the focus on Britain’s military and intelligence capabilities. Speaking before her first visit to Riyadh as prime minister she emphasised the value of intelligence provided by Britain’s key Middle Eastern ally. – The Times (£) Theresa May flies to Middle East as she seeks ‘bold, confident future’ for post-Brexit Britain – Daily Telegraph Prince Charles to be joined by UK ministers on ‘Brexit charm’ tour Prince Charles will be joined by UK government ministers later on his royal tour of Italy, a trip some have described as a Brexit charm offensive. The Prince of Wales will be in Florence with his wife the Duchess of Cornwall, attending a series of engagements focusing on food, farming, wool and culture. UK ministers are expected to be part of the royal delegation and travel with them to Rome on Tuesday and Wednesday when the Prince will meet senior Italian political figures. – Sky News Number of technology companies setting up in the UK more than doubles this side of the Brexit vote The number of tech firms setting up in the UK has more than doubled in the months following the Brexit vote last June, research out today has found. RSM’s study of data stored by Companies House discovered 5,995 software publishing, computer programming, and business and domestic software companies were incorporated in the eight months following the referendum, compared with 2,325 in the eight months preceding the vote. “There were fears that the Brexit vote would dampen activity in the tech sector and businesses would be attracted overseas. In reality, they are staying and multiplying,” said Richard Heap, technology partner at RSM. “Clearly the entrepreneurial spirit in the sector is alive and well.” – City A.M. Britain will get money back from the EU instead of paying to leave under plans being considered by ministers Britain will get money back from the European Union instead of paying to leave under plans being considered by Cabinet ministers. European leaders have warned the UK that it will face a divorce bill of up to £50million for outstanding commitments and pension liabilities. However The Telegraph understands that officials are currently drawing up a register of the UK’s assets in the European Union as part of negotiations. – Daily Telegraph Donald Trump: Brexit could be a good thing for both parties Donald Trump has praised the European Union’s response to Brexit, claiming the UK’s withdrawal from the bloc could be a “very good thing” for both parties. The US President said other members were “getting their act together” and it had become less likely that other countries would follow the UK’s example. “I think Brexit is very good for the UK, it is going to be very good for UK,” he told the Financial Times. “I would have thought when it happened that more would follow, but I really think the European Union is getting their act together. It could be a very good thing for both.” – The Independent British company finance chiefs are their most optimistic in 18 months British company finance chiefs are their most optimistic in 18 months, but their risk appetite has recovered far less from the battering it took in the run-up to and aftermath of last year’s vote to leave the European Union, a survey showed on Monday. Britain’s economy enjoyed the second-fastest growth of any large advanced economy last year, but with consumer demand fading in the face of surging inflation, the Bank of England hopes business investment will keep growth going this year. Accountants Deloitte said the mood among chief financial officers who decide investment plans at some of Britain’s biggest companies was the most upbeat since June 2015. – Reuters British businesses ready for risk as Brexit shock simmers Finance chiefs at some of Britain’s largest corporates are feeling as optimistic about their businesses future as they did before the EU referendum, with risk appetite trickling back after dropping off a cliff post-Brexit. The proportion of chief financial officers (CFOs) who feel better about the prospects for their company now versus three months ago stands at 31pc – more than the final quarter of last year and the highest level since the second quarter of 2015, according to a poll of 130 finance chiefs. – Daily Telegraph Technology will help smooth any post-Brexit customs checks bumps insist officials New technology can help smooth the path over any post-Brexit bumps at Dover, an official has declared. Lucy Moreton, general secretary of the ISU union for borders, immigration and customs expressed concerns over the port becoming a “magnet” for illegal immigration. And Port of Dover’s chief executive, Tim Waggott told Sky’s Sophy Ridge on Sunday that delays on checking huge volumes of cargo could cause major traffic problems. “We overflow our available space two or three times a week, at peak times. That will be a daily occurrence,” he said. – The Sun Daily Telegraph: Brexit means global opportunity not thuggery The Prime Minister embarks on a tour of the Gulf today, notably visiting Britain’s key strategic ally in Saudi Arabia. Meanwhile, Chancellor Philip Hammond is leading a trade delegation to India, one of the fastest-expanding markets in the world, and Liam Fox, the Trade Secretary, is heading to the south-east Asian nations of Indonesia, Malaysia and the Philippines. Nothing could represent the global ambitions of a post-Brexit Britain better than this trio of trips. From Jakarta to Mumbai to Dubai, the message must be clear: this country will use its future status outside the EU to build a uniquely competitive economy, combining long-established expertise in financial and legal services with low taxes and a simplified regulatory system to become one of the planet’s best places to do business. – Daily Telegraph editorial Juliet Samuel: The EU will do a Brexit deal because bully-boy tactics will only ensure its destruction There is a tendency, in Britain, to view Europe and all the proclamations that issue from it, as given fact. Just as the rain will ruin many a summer wedding, the EU, obeying its own natural laws, can respond to Brexit only by inflicting on its exiting member a grievous penalty. Whatever the interests of Germany’s car exporters, the necessary incentives dictate that all quitters must live to regret their choice – there is no other way to keep the EU together. This logic explains why, despite the overwhelmingly obvious interests that both the EU and Britain have in striking a deal, pessimism is taking root. Throughout the referendum campaign, Brexiteers argued that hard-headed financial matters – German automakers and French vineyards – would force the EU to the table. But nine months on, those players we thought might have a moderating role appear, if anything, to be hardening their hearts against us. – Juliet Samuel for the Daily Telegraph Roger Bootle: Outside the EU, Britain may be small but more perfectly formed Now that the process of leaving the EU has formally begun, I have been musing on the links between government and economic performance and the implications for the future of the EU and the UK. We have decided to leave the EU primarily for reasons of governance, that is to say, the desire to “take back control”. Nevertheless, this can potentially have decided economic effects. Most Brexiteers do not believe they will be negative. On the contrary. Yet it seems that many European politicians and officials confidently believe that the UK has acted profoundly against its economic self-interest. Sometimes, they even seem to believe that, isolated and impoverished, the UK will barely manage to stay afloat at all. So they see Brexit as a futile but costly political gesture. – Roger Bootle for the Daily Telegraph Trevor Kavanagh: Skewsflash! BBC is STILL Brexit bashing, despite our growing economy and jobs boom To the regret and dismay of gloomy Remainers, the British economy is powering ahead on all fronts. Every single indicator has been flashing gold since the June 23 referendum. The UK is the fastest-growing economy in the Western world — ahead of Germany and even America. We are enjoying a jobs miracle which is the envy of Europe, with unemployment below five per cent — less than half the EU average. Even can-do America is asking how we did it. Foreign cash worth billions is flowing in from tech giants such as Apple and Google — the clearest vote of global confidence in UK plc. Exports are booming after a welcome fall in Sterling, trimming state borrowing and easing the burden on taxpayers. We might even begin paying off our huge national debt. By any standards, this is a remarkable picture worth headlines on our biggest news network. But have you seen a BBC programme showing Brexit in a positive light — or suggesting there might be an upside to leaving Europe? – Trevor Kavanagh for The Sun Tim Montgomerie: Britain needs more than just Brexit – it needs a radical reboot Theresa May has got so much right since she became Prime Minister. She made it immediately clear that she would respect the referendum result – understanding that any attempt to ignore, frustrate or dilute the largest ever tally of votes in British history, risked undermining public faith in democracy for good. She understood that the vote for Brexit was partly a vote for a fairer Britain – in which politicians like her needed to strive harder to protect the casualties of our “multigeddon” era, when those with least margin for error are simultaneously hit by huge economic, security, technological and (too often forgotten) familial change. – Tim Montgomerie for CapX Fredrik Erixon: Britain and the EU probably will reach a trade deal. Here’s why Most diplomats in Brussels will tell you that Theresa May has just embarked upon a fool’s errand, that Britain might wish for a free-trade deal with the European Union but will have to learn that it can’t cherry-pick. Anyway, they say, nothing of any value can be agreed in two years. This received wisdom can be heard, under various iterations, in most capitals in Europe — and it’s natural that the EU will be sore, perhaps a little defensive. But there is a free-trade deal to be struck. First, a declaration: I didn’t want Britain to leave the EU. I’m a Swede running a free-trade thinktank in Brussels and can tell you that the UK’s absence will be sorely felt by all of its allies. A great many governments will feel the same, but to deny Britain a free-trade agreement would be an extraordinary act of self-harm, for all sides. – Fredrik Erixon for The Spectator Brexit comment in brief The Eurocrat’s days are numbered. Now who will the Tories blame? – Matthew d’Ancona for The Guardian We will make a great success of Brexit – Bernard Jenkin MP for the Braintree and Witham Times Deal or No Deal. What happens if we leave the EU without a comprehensive agreement? A call for evidence. – Dean Godson for ConservativeHome The UK needs to get its priorities straight – Marley Morris for The Times (£) Apprenticeships are essential in post-Brexit Britain – Robert Halfon for The Times (£) Brexit news in brief Luxembourg PM suggests second UK-EU referendum – BBC Radio 5 Live Ireland ‘will be hit hardest’ by Brexit, claims Centre for European Policy Studies report for the European Parliament – The Times (£) After a measured response from the Europeans, has the Article 50 process got off to a good start? – City A.M.