Brexit News for Thursday 4 May

Brexit News for Thursday 4 May
Sign up here to receive the daily news briefing in your inbox every morning with exclusive insight from the BrexitCentral team

Theresa May accuses Brussels of trying to affect the UK election

Theresa May has accused European politicians of making “threats” against Britain to try to influence the general election result. The PM launched a stinging attack on the “bureaucrats of Brussels” in a speech outside 10 Downing Street after meeting the Queen. She said some in Brussels wanted Brexit talks to fail… She said events of the past few days had shown “just how tough” Brexit talks are likely to be. “Britain’s negotiating position in Europe has been misrepresented in the continental press,” she said, in a reference to a German newspaper’s account of her dinner with the EU Commission chief. “The European Commission’s negotiating stance has hardened. Threats against Britain have been issued by European politicians and officials. All of these acts have been deliberately timed to affect the result of the general election that will take place on 8 June.” – BBC News

“The events of the last few days have shown that whatever our wishes and however reasonable the positions of Europe’s other leaders, there are some in Brussels who do not want these talks to succeed, who do not want Britain to prosper,” she said… Labour leader Jeremy Corbyn accused Mrs May of “playing party games” in the “hope of winning advantage” for the Tories. He said: “By winding up the public confrontation with Brussels, the Prime Minister wants to wrap the Conservative party in the Union Jack and distract attention from her Government’s economic failure and run down of our public services. But Brexit is too important to be used as a political game in this election.” – Sky News

  • Theresa May hits out at the ‘bureaucrats of Brussels’, full transcript – The Spectator Coffee House
  • How Theresa May’s anger finally spilled over after a week of EU attacks – Telegraph
  • Brexit will never be a success, says Juncker’s top aide Martin Selmayr – Politico
  • EU says ‘deal with reality’ after May’s accusation of election influence – Sky News
  • May hits at Brussels — Barnier and Selmayr strike back – Politico
  • Corbyn: PM is playing Brexit games and trying to wrap the Tories in the Union Jack – LabourList
  • Clegg: The EU knows Theresa May is deluded on Brexit. And soon the Tories will – Nick Clegg for the Guardian
  • The EU fears a strengthened Theresa May. Of course it would seek to undermine her – Iain Duncan Smith for the Telegraph (£)
  • Only hated Eurocrat Jean-Claude Juncker is stopping a quick deal to leave the EU – Daniel Hannan MEP for The Sun
  • Theresa May pulls no punches in her attack on the European Commission – James Forsyth for The Spectator Coffee House
  • The European Union’s antics serve as a reminder of why Britain voted to leave – Telegraph editorial
  • It’s war: Theresa May has hit back at Brussels briefings that are hostile to Britain. The prime minister can use this to her advantage in a general election – The Times (£) editorial
  • Brussels plots have made Theresa May more popular – Express editorial
  • We applaud Theresa May for giving the EU’s infantile bullies a much-needed kicking – The Sun says

EU negotiator Michel Barnier says Brexit won’t be quick and painless…

The EU’s chief Brexit negotiator has said talks on Britain’s exit will not be concluded “quickly and painlessly”. Michel Barnier said it was an “illusion” to think this was the case, as he set out the European Commission’s detailed negotiating guidelines for the first phase of withdrawal talks… It comes amid reports Britain could be hit with a €100bn (£84.5bn) “divorce bill”, a sharp increase on previous estimates of €60bn… Mr Barnier stressed the so-called divorce bill was not a punishment for the UK leaving, but rather a “settling of accounts” that needed to happen before talks could progress. – Sky News

  • UK’s financial obligations to EU will be ‘incontestable’, says Barnier – Guardian
  • EU Brexit directives: what they said and what they meant – Ryan Heath and Ginger Hervey for Politico
  • The EU’s divorce bill demand is good news for Theresa May – Stephen Bush for the New Statesman Staggers
  • The EU’s menacing henchmen are proving that Britain has a battle ahead on Brexit – John Longworth for the Telegraph (£)
  • The EU just wrecked their chance of getting a “divorce settlement” – Rachel Cunliffe for Reaction

> Hugh Bennett on BrexitCentral: The EU’s obsession with Britain’s money exposes its own vulnerability

…as Philip Hammond also rejects the €100bn divorce bill figure…

Chancellor Philip Hammond has rejected reports that the UK could be asked to pay as much as €100bn (£84.5bn) as part of its divorce settlement with the European Union. The new figure, which is significantly higher than previous estimates, reflects stricter demands by Germany and France, according to analysis by the Financial Times. But Mr Hammond, speaking at an election event, told Sky News: “I don’t recognise this number, I genuinely don’t recognise it. “It’s moved by 60% in the space of a few days… What we do know is that we’re on the brink of a very tough, complex, lengthy negotiation. I’m not remotely surprised people are manoeuvring for opening advantage in that negotiation.” Brexit Secretary David Davis has also asserted Britain “will not be paying €100bn”, adding: “We have not seen a number”. – Sky News

  • Ignore €100bn Brexit bill and focus on trade deal, CBI tells London and EU – Telegraph
  • This is the truth about the UK’s ‘Brexit bill’ – Hamish McRae for the Independent
  • With fresh estimates putting the UK’s Brexit bill at an enormous €100bn, should Britain pay it? – Richard Corbett MEP vs Julian Jessop for City A.M.
  • Europe must stop trying to mug us with a hefty divorce bill or we’ll just walk – Gerald Warner for The Sun

> WATCH: BrexitCentral editor Jonathan Isaby on the “€100bn leaving fee”

> WATCH: David Davis: We won’t pay €100 billion to the EU

> WATCH: Yanis Varoufakis: It’s a declaration of hostilities

…and David Davis says it is not up to Brussels to set Brexit rules

David Davis, Brexit secretary, has warned Brussels not to lay down terms on how Britain conducts exit negotiations, rejecting suggestions that Theresa May could not play a leading role in talks. Mr Davis said that he would play a key role in conducting weekly EU exit talks, but was adamant that Mrs May would be able to talk directly to fellow leaders from the other 27 member states “on a monthly basis or more”. The EU has named Michel Barnier, the former French foreign minister, as its lead negotiator and member states are anxious that the regular summits of the EU over the next two years do not become dominated by Brexit. EU officials told The Times on Wednesday there was “not going to be a negotiation around a table between heads of state and government”. But Mr Davis said: “We are not entering these negotiations as supplicants. It is not for the other side to lay down every single rule.” – FT (£)

Belgian finance minister warns EU: change or die

Brexit has “shattered” the principle of ever closer union in the EU, according to the Belgian finance minister, who warned that the bloc had to transform itself to survive. Johan Van Overtveldt said there was “clearly a problem” with the European Union, as he called for a quick, comprehensive trade deal with the UK and warned that punishing Britain would be counterproductive… He urged policymakers to take a different approach to integration and said the idea of an EU forged in crisis put forward by Jean Monnet – dubbed the father of Europe – was “dead”… He also called on the rest of the EU to be pragmatic about Brexit, adding that smaller states such as Belgium, Ireland and the Netherlands had much to lose from a so-called hard Brexit where the UK was forced to trade under World Trade Organisation rules. – Telegraph

Spain planning Gibraltar veto over ‘unjustified privileges’

Spain could use its veto in Brexit negotiations over the future of Gibraltar to end what Madrid calls the Rock’s “unjustified privileges”. Gibraltar’s low-tax status means it enjoys “unfair competition” with its much larger neighbour, according to a leaked report from the Spanish foreign ministry. Companies on the Rock pay 10 per cent tax while personal income tax is 20 per cent… Spain gained a diplomatic victory when it secured a veto over the future status of Gibraltar in the EU in conditions for negotiations for Britain’s divorce from the bloc. Madrid will demand that any deal over Gibraltar respects its claim to sovereignty over the Rock but the report did not specify how… However, the report stressed Spain’s immediate priority is guaranteeing the rights of the 102,000 Spanish citizens living in Britain. The document, leaked to El Pais newspaper, says Madrid would prefer a “soft Brexit” and is favours guaranteeing the rights enjoyed by the 286,000 Britons resident in Spain. – The Times (£)

Theresa May expected to challenge right of EU citizens to bring family to Britain…

A major clash over the unrestricted right of EU citizens living in Britain to continue to bring spouses and other immediate family to live with them in the UK after Brexit is expected after the publication of the official negotiation guidelines. The EU’s guidelines state that any reciprocal deal on the rights of EU citizens in the UK must also cover “their family members who accompany them or join them at any point in time before or after the withdrawal date”… The inclusion of family immigration rights in the Brexit negotiating guidelines by the European commission is no accident. It has been pushed vigorously by the European parliament, which sees it as its responsibility to preserve all existing rights for EU citizens living in Britain even if those rights clash with UK law. – Guardian

…as Institute for Government claims EU immigration ‘likely to continue for some years’ after Brexit

European Union citizens will be free to come to the UK for several years after Brexit despite repeated promises from leave campaigners that restrictions would be swiftly introduced, a Whitehall thinktank has found. A report released on Thursday by the Institute for Government (IfG) warns ministers it will be “unfeasible” to create a new immigration system by April 2019 at the end of the two-year deadline when Britain plans to leave the EU. The scale of the administrative challenge is too great and the current immigration system should be kept until a replacement is ready to avoid disruptive changes to labour markets, the think tank has concluded. – Guardian

EU prepares for power grab on London’s euro-clearing market

The European Commission is preparing to issue legislative proposals that would impose restrictions on London’s huge market for clearing euro-denominated financial transactions. According to official documents seen by The Independent, these would force UK operators of clearing houses to either relocate to mainland Europe or to be directly regulated by European authorities… According to Reuters, as much as 75 per cent of euro-denominated interest rate derivatives, the world’s most heavily traded swap contract, are cleared in Britain by LCH [London Clearing House]. The European Central Bank (ECB) has in the past attempted to force clearing houses that process a lot of euro-denominated securities to be relocated to the continent. But in 2015, the EU’s second-highest court annulled the policy as being contrary to the rules of the single market. – Independent

People who think the UK needs an EU trade deal are ‘foolhardy’ says Wetherspoons boss Tim Martin

In a colourful statement, Mr Martin singled out Carolyn Fairbairn, head of the Confederation of British Industry for her comments last week that Britain “leaving the [Brexit] negotiating table without a deal shouldn’t be Plan B, but Plan Z”. “It is hard to believe that such foolhardy advice could emanate from a business organisation,” Mr Martin said, comparing the CBI’s stance to that of a housebuyer telling a seller that they must have the seller’s house at any cost. The approach will mean that the buyer – the UK, in the case of Brexit – will “pay the maximum the seller believes he can afford”, the pub chain boss said. The UK must instead stress that it is willing to walk away from a deal with the EU and trade under World Trade Organisation terms, Mr Martin recommended. – Independent

Allister Heath: The EU’s attempt at First World War-style reparations revenge will only make Britain more united

Its latest preposterous demands – that we should hand over €100 billion for the privilege of regaining our self-government and that we can, in effect, never really leave – are so belligerent, so absurdly punitive that they will be remembered as a seminal moment in the hardening of British opinion… The EU isn’t a force for economic freedom. It keeps demonstrating its mercantilism, and explicitly sees trade as a one-way favour, a privilege in return for which money and control (via European-imposed rule and the jurisdiction of its court) must be surrendered. In reality, trade is always mutually beneficial, and no other “trading block” charges a “fee” for access. The fact that Barnier and his gang want to make us “worse off” by imposing protectionist barriers on UK firms expose them as economic illiterates with no interest in free markets. – Allister Heath for the Telegraph (£)

Iain Martin: Sorry Mr Juncker, you are the delusional one

The row is significant beyond June 8 because it helps Mrs May prepare the ground for what looks increasingly likely: the potential failure of the talks. “If they’re not careful the commission will legitimise a no-deal outcome,” says a minister. This hardens hearts. There is Mrs May being mannerly, laying on dinner and seeking an accommodation, but determined not to be a pushover when provoked. The commission responds with insults and pleas for €100 billion, all orchestrated by the overpromoted former prime minister of Luxembourg. This duplicity comes from the people who invented the euro and the wide-open borders of Schengen, who inflicted misery on tens of millions of southern Europeans post-euro, and who helped create the conditions in which 40 per cent of the French will vote for a notorious fascist this weekend. And they dare call the British delusional. – Iain Martin for The Times (£)

Christian May: Prime Minister Theresa May should drop her immigration pledge

Repatriating democratic control over immigration policy was, for a large section of Brexit-backers, just as important as any move to reduce the overall number. Indeed, plenty of Leavers wish to retain a liberal approach to immigration. The reality is that the government will face competing pressures in this area: balancing the needs of business and the health of the economy with a political commitment to reducing the overall numbers… All of this presents a political headache for May, who has doubled-down on her desire to reduce net migration “to the tens of thousands.” The previous government clung to this absurd ambition (without ever coming close to achieving it) and Theresa May is now carrying the torch for a policy that would have a profoundly negative effect on the UK’s economy and international reputation. May ought to go into this election having dropped the pledge to bring about a reduction to the tens of thousands. She’s going to need all the breathing space she can get in the coming years, and tying her hands in this area will not be worth the price. – Christian May for City A.M.

Andrew Lilico: The European Commission wants to engineer a no-Brexit-deal crisis, but it will only harm itself

It is beginning to look, from the UK perspective, as if some in the Commission are seeking to engineer a no-Brexit-deal crisis. They imagine that will be like the periods of capital controls in Cyprus and Greece, which demonstrated to the populations of those countries their impotence and their position as supplicants. It seems like some EU officials imagine the UK will react in the same way. The reality is that no Brexit deal would be bad for the UK and bad for the EU as well. But on both sides it would turn people against the EU. On the UK side it would make people think that the more extreme anti-EU folk were right all along. In the EU27 it would empower the populist forces who claim the EU is uninterested in the economic welfare of ordinary citizens. – Andrew Lilico for the Telegraph (£)

Brexit comment in brief

  • Forget Putin – it’s Brussels that is meddling in our elections – Brendan O’Neill for spiked
  • The inside story of Labour Leave: the left-wing Eurosceptics who toppled a Tory Prime Minister – Julia Rampen for the New Statesman
  • Brexit can’t be judged a success if Britain becomes a more closed society as a result – Mark Boleat for City A.M.
  • It is in Europe’s interest to treat Britain fairly on Brexit – Jean-Claude Piris, former Director-General of the EU Council Legal Service for the FT (£)
  • EU’s anti-British feeding frenzy egged on by the Nasty Nation – Gerald Warner for Reaction
  • The six Brexit traps that will defeat Theresa May – Yanis Varoufakis for the Guardian
  • Welcome to Theresa May’s campaign war room – Tom McTague for Politico
  • Inside the world of ruthless ‘Mutti’ Merkel – Europe’s Iron Lady – Matthew Qvortrup for the Telegraph (£)

Brexit news in brief

  • Watch: Tim Farron taken to task by furious Brexit voter – Steerpike for The Spectator Coffee House
  • Insults fly in French TV debate between Le Pen and Macron – The Times (£)
  • 3 takeaways from the French presidential debate – Politico