Brexit News for Thursday 6 July

Brexit News for Thursday 6 July
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New Brexit minister Steve Baker warns colleagues not to dilute Theresa May’s Brexit plans…

It would be fatal show of weakness – “like putting blood in the water” – to let Brussels believe Britain is stepping back from the Prime Minister’s hardline proposals, set out in January, he warned. Mr Baker admitted to Cabinet divisions on the terms of Brexit since the election weakened Ms May, saying: “It is the case that some people would like to reinvent things.” But, the junior Brexit minister insisted: “We have taken a major strategic decision to leave the European Union. “That is a major strategic decision for our country and the last thing we need to do now is take a misstep. One of those missteps would be to divert from the policy that was set out in the Lancaster House speech and the White Paper.” – Independent

  • Leave supporters urged to “put the joy into Brexit” by Minister Steve Baker – Express

> On BrexitCentral’s YouTube channel: Steve Baker interviewed on yesterday’s Daily Politics

…while David Cameron is apparently phoning Tory MPs urging them to back the Norway option instead

In a major intervention that will infuriate Theresa May, the former prime minister is said to have telephoned a string of Tory MPs in recent days to argue that Government should seek the so-called “Norway option” for the UK’s future relationship with the EU. His proposal – which directly conflicts with Mrs May’s Brexit blueprint – would mean Britain staying in the European Economic Area (EEA), a free trade zone that includes the 28 current EU member nations along with non-EU countries Iceland, Liechtenstein and Norway… A senior Tory MP said: “Cameron has been in touch with a number of backbenchers this week, trying to persuade them that the country should go for the Norway option. It is extraordinary that he is arguing in favour of the EEA membership given that he claimed it would be a disaster for the UK during the referendum.” – Express

Philip Hammond and Liam Fox in reported ‘turf war’ over post-Brexit trade policy

A major Whitehall turf war has broken out between Philip Hammond and Dr Liam Fox over Britain’s post-Brexit trade policy. The Chancellor’s Treasury staff have challenged the International Trade Secretary’s department to assess whether new free trade deals with non-EU countries will compensate for leaving the customs union. It is seen as a ploy by Mr Hammond – who is leading efforts to deliver a “soft” Brexit – to keep Britain closely tied to the EU’s customs union to avoid disruption for business. But the move is fiercely opposed by Brexit supporters because continuing to abide by the rules of the customs union would continue to restrict Britain’s ability to pursue an independent international trade policy. EU rules bar members of the customs union from striking bilateral trade deals. – The Sun

  • Hammond still pushing for Customs Union: Chancellor vows to pressure Fox over Hard Brexit – Express
  • Five things to know about a customs union – Institute for Government

BBC bosses reject a damning dossier accusing the corporation of ‘anti-Brexit bias’ in Radio 4 coverage

Arrogant BBC bosses sparked uproar by snubbing a damning dossier alleging the corporation of outright anti-Brexit bias. Speaking 24 hours after a showdown revealed by the Sun, pro-Brexit MPs said the meeting with BBC execs was a “complete and utter waste of time.” They claimed the broadcaster felt it was doing nothing wrong despite figures alleging a wildly pro-EU bias in coverage on Radio 4. One MP said: “If you listen to (BBC Director of News) James Harding, the BBC has never made a mistake in its life. They don’t accept there’s a problem.” A dossier handed to BBC chiefs claimed that of 366 guest speakers on the business slot on BBC Today, 52.5 per cent were negative about Brexit – against 16.3 per cent who were optimistic about the post-referendum outlook. Only ten business news guests on the flagship programme were supporters of leaving the EU. – The Sun

  • BBC chief dismisses claims of distorted coverage during showdown meeting with Eurosceptics – Mail

Lord Chief Justice dismisses ‘lie’ that Brexit will damage the courts

The lord chief justice hit back last night at “the lie” that Brexit would damage London’s standing as a global legal centre. Lord Thomas of Cymgiedd said that leaving the European Union did not “affect the quality or certainty of English law or the standing of our courts or London’s arbitration centres”. However, there was a perception — “fuelled by our competitors for their own advantage” — that this was not the case, Lord Thomas said… Lord Thomas, the most senior judge in England and Wales, was speaking days after similar comments from the UK’s most senior judge, Lord Neuberger… The speeches, along with comments last night from David Lidington, the new lord chancellor, indicate a concerted effort by senior legal figures to thwart attempts by other jurisdictions, such as France or Germany, to use Brexit as a chance to undermine the UK’s legal standing. – The Times (£)

  • Justice Secretary David Lidington says Brexit will give Britain’s top judges the freedom to prove ‘they are the best in the world’ – The Sun
  • Never mind the City’s financial sector – Lord Mayor says the UK’s legal industry will carry the country through Brexit – City A.M.

The UK financial sector could be £43 billion stronger after Brexit with City ‘roadmap’…

A lobby group for the UK finance industry claims the sector could add £43 billion to the UK economy by 2025 if industry, regulators, and the government pull together to work on a “roadmap for change.” PricewaterhouseCoopers (PwC) and lobby group TheCityUK published a blueprint for transforming the UK’s financial sector post-Brexit on Thursday. The report recommends a combination of regulatory, industrial, and governmental changes to enable post-Brexit growth… If the changes are successful, the report predicts an increase in industry gross value added of 9%, or £16 billion, with almost three-quarters of these benefits felt outside London. – Business Insider

The City of London wants a new “digital skills visa” to shore up the UK’s position as a financial technology hub against a growing threat from rival cities. The idea is one of several proposals made in a report by PwC for TheCityUK lobby group, which focuses on how the UK’s financial services sector can be competitive after Brexit. The report says that younger people with vital digital skills should be allowed to move to the UK even if they do not have a job offer. Britain has become a hotbed of “fintech” innovation and investment, but financiers fear this could be undermined if a recent focus on immigration prevents start-ups from hiring the best talent from around the world. – FT (£)

  • Former City minister Mark Hogan dismisses ceding euro-clearing to Brussels post-Brexit – Belfast Telegraph

…as ECB study admits EU hopes to poach London’s euro trading could be made “impossible” by undersea cable problems

If Brussels has any intention of moving one of the City of London’s trading jewels to continental Europe after Brexit, it will need to move mountains — or at least mountains of fibre optic cables. A study by the European Central Bank on Wednesday concluded that the undersea cables, usually about the diameter of a skateboard wheel, are a critical factor in determining the competitive strength of financial centres… But while the ECB has already moved to assist a European Commission proposal that could force euro clearing to the continent, the study warns that the physical limitations is likely to make a similar shift for euro clearing slow if not impossible. – FT (£)

New deputy chair of Lloyd’s of London says Brexit won’t threaten London’s prized insurance status

Brexit will not threaten London’s prized global insurance crown, the new deputy chair of Lloyd’s said today. Hiscox chairman Robert Childs was unveiled this morning as the replacement for Paul Jardine, taking up the position immediately. Speaking to City A.M. he downplayed the impact of Britain’s exit from the EU, saying it will have a structural rather than a strategic consequences. – City A.M.

EU strikes trade deal with Japan

Europe’s farmers will win prized access to the Japanese market as part of a trade deal that will also sweep away tariffs that have impeded exports by Japan’s carmakers to the EU. Shinzo Abe, Japan’s prime minister, and Jean-Claude Juncker, European Commission president, will present the agreement in Brussels on Thursday, a day before G20 leaders meet in Germany. The accord, reached after four years of talks, will remove tariffs from 99 per cent of goods traded between the EU and Japan, although in some cases lengthy transition periods of a decade or more will apply. – FT (£)

£51bn-a-year Common Agricultural Policy budget will have to be slashed after Brexit, admits Dutch farming minister

Cutting farmers’ cash subsidies is normally taboo but Martijn van Dam has stuck his neck out to say it will be inevitable once the UK stops pouring money into the CAP coffers. Europe hands out cash to farmers based on how much land they own and Mr van Dam said moving to a performance-based model where payments are made for meeting certain goals is the way forward. – Express

The Spectator: The quiet successes of Brexit

Ignore the doom-mongers, and the EU’s attempts to embarrass Britain – a good deal is looking likelier than ever… The official Brexit talks were always going to be a pantomime, intended to embarrass Britain. The European Union has taken Brexit badly, and is understandably anxious that a majority of French, Spanish, Italians and Poles now say they would support a referendum on their EU membership. We can expect patronising remarks from Jean-Claude Juncker, and various staged events intended to portray Theresa May as isolated and friendless. At the last Brussels summit she was asked to give a presentation while waiters cleared away dinner cutlery. This is how the EU works — which is, in part, why so many Britons voted to leave… But Brexit has its own logic and its own momentum: if it makes sense for Britain and the EU to co-operate on issues such as defence, trade, patents and scientific research, then a deal is likely. That is not blind hope, but what is happening already. – The Spectator editorial

Liam Fox: Brexit opens up the vast opportunities of free trade

The case for free and open trade is strong, and there are almost limitless opportunities for British businesses to expand into every corner of the world, projecting this country’s prosperity far into the future. Yet we cannot achieve these ambitions if we can only operate within the parameters set by the European Union. As the Prime Minister and this Government has always said, full membership of the customs union is not an option. We want Britain to be able to negotiate our own trade agreements with old and new allies across the globe. That means leaving the customs union and establishing a trade policy tailored for our business, our economy, and our citizens. Then, we can equip Britain to face the challenges of the coming century. If we are to do so, then we must broaden our horizons. Globalisation and new technology have eliminated the constraints of geography and time, and we have a golden opportunity to shape our own trade policy to match the new economic reality. – Dr Liam Fox MP for ConservativeHome

Rachel Cunliffe: Juncker’s tantrum highlights the big EU democracy problem

The European Parliament is “ridiculous, very ridiculous” and entirely “not serious”. No, those aren’t the words of Nigel Farage, but of Jean-Claude Juncker, the European Commission president and one of the EU’s fiercest advocates… The point is, despite the work MEPs do and the impact it has on the lives of people back in their home countries, they are not held accountable to anywhere near the same degree as national politicians are… Low attendance is a symptom, not a cause. The political unity does not currently exist for the Parliament to be held accountable in the way we expect of our democratic institutions, and as such it is inefficient (some would say inept) at solving many of the bloc’s supranational problems. – Rachel Cunliffe for City A.M.

Timothy Less: Reports of the EU’s revival are greatly exaggerated

It is understandable that Europe’s supporters should look for good news after years of crisis. However, at the risk of spoiling the party, reports of the EU’s revival are greatly exaggerated. The problem, as always, is the eurozone. Migration, terrorism, Russia and Brexit are all difficulties but the EU’s existential crisis is the impoverishment of millions in the Mediterranean caused by the monetary straightjacket in which they are trapped. If nothing changes, Italians and others will eventually elect governments who promise to bring their suffering to an end by leaving the single currency, and take the edifice down with it. – Timothy Less for Reaction

Christian May: As the Twitter incident with Vote Leave’s Dominic Cummings shows, Brexit debate is still more heat than light

Wounds are still raw in the anti-Brexit lobby, so it’s no surprise that things got heated earlier this week after one of the architects of the UK’s Brexit vote appeared to admit that the decision may yet turn out to be “an error”… By yesterday afternoon, the incident had sparked scores of furious and outraged statements and articles – all repeating the idea that Cummings had “confessed” or “come clean” on the looming disaster of his own making. The pace with which smart (and admittedly, less smart) people pounced on the supposed admission was unedifying, misleading and unfair. A simple scroll through Cummings’ tweets reveals that he’s always talking about the theory of branching futures… In other words, his throw-away remark that some “possible future branches” exist in which Brexit is an error should be taken not as a gaffe or a frank admission but as a literal observation… Rather than taking delight in trying to trip him up with his own tweets, Remainers should engage with his detailed and honest assessment of the state of the Brexit debate and the approach that the government is taking. They might even learn something. – Christian May for City A.M.

Charles Clover: The happy fate of North Sea cod shows Brexit Britain can become a sustainable fishing superpower

The astounding recovery of the North Sea cod – to the point where fillets on the cold shelf are now about to be awarded the blue tick of eco-certification, after years of danger – was not a victory for the EU. In fact, we should thank a British initiative that went beyond the EU’s flawed recovery plan. The fortunes of cod should stand as a model of how Britain could manage its waters better, and resist pressure for access from other countries once it becomes an independent coastal state… Post Brexit, Britain has an opportunity to show the leadership in its own waters that it has shown in global marine issues by protecting four million square kilometres around its Overseas Territories. – Charles Clover for the Telegraph (£)

Brexit comment in brief

  • May’s Brexit plan sacrifices economy to stop EU migrants who won’t come anyway – Ambrose Evans-Pritchard for the Telegraph (£)
  • The double-hatted Suella Fernandes – both a member of the Government and a pro-Leave group leader – Suella Fernandes interview on ConservativeHome
  • The myth of Britain’s decline – Robert Tombs for the Spectator
  • Philippa Stroud on family breakdown, welfare reform and Brexit – CapX Podcast
  • The preposterous pomp of Emmanuel Macron – Charles Moore for the Spectator
  • Europe is paying the price for Angela Merkel’s migrant madness – Douglas Murray for The Sun
  • Will Erdoğan open Turkey’s European border? – Alexander Fiuza for CapX
  • The migrant crisis could prove to be Macron’s undoing – Gavin Mortimer for the Spectator
  • Yes Mr Juncker, the EU parliament is ridiculous – Telegraph editorial (£)
  • Ken Loach’s Brexit warning falls flat – Steerpike

Brexit news in brief

  • Former EU commissioner Pascal Lamy calls for post-Brexit framework in which the UK can remain in the European Research Area – Guardian
  • Business optimism plunges in the wake of election chaos – Telegraph
  • Sadiq Khan told ‘stop looking backwards’ after refusing to remove EU flag from City Hall – Express
  • Brexit faces potential court challenge over ‘technical flaw’ in way Article 50 was triggered – Independent
  • Slump in EU applications to work in care homes amid uncertainty around Theresa May’s deal for EU nationals – The Sun
  • EU chief mocks Brexit by comparing Britain’s trade ambitions to a Monty Python sketch – Telegraph (£)
  • Turkey’s dream of joining the EU could end today – The Times (£)
  • EU should have power to tax Europeans direct: Euro-federalist calls for EU tax on nations – Express
  • Antonio Tajani rejects plan to swap Parliament’s Strasbourg seat for London’s EMA – Politico
  • ‘No tanks’ at Italy border vows Austria’s leader – Sky News
  • For Europe and migrants, it looks like 2015 all over again – Politico
  • Europe migrant crisis: EU blamed for ‘soaring’ death toll – BBC News