Sign up here to receive the daily news briefing in your inbox every morning with exclusive insight from the BrexitCentral team Theresa May sets out post-Brexit offer on EU citizens Theresa May has said she wants EU citizens living in the UK to stay after Brexit as she announced plans designed to put their “anxiety to rest”. All EU nationals lawfully resident for at least five years will be able to apply for “settled status” and be able to bring over spouses and children. Those who come after an as-yet-unagreed date will have two years to “regularise their status” but with no guarantees… She told the Commons that she wanted to give reassurance and certainty to the 3.2 million EU citizens in the UK – as well as citizens of the three EEA countries and Switzerland – who she said were an “integral part of the economic and cultural fabric” of the UK. – BBC News EU nationals living in the UK under new arrangements post-Brexit will have the same rights as British citizens to bring family members into the UK, Theresa May has said… “Family dependants who join a qualifying EU citizen here before the UK’s exit will be able to apply for settled status after five years. After the UK has left the European Union, EU citizens with settled status will be able to bring family members from overseas on the same terms as British nationals.” She also stressed that rights granted to EU citizens in UK must be reciprocal, adding: “This is a fair and serious offer.” – ITV News Policy Paper: Safeguarding the position of EU citizens in the UK and UK nationals in the EU – GOV.UK EU citizens must bring family over before Brexit or face tougher immigration rules – Beth Rigby for Sky News Theresa May’s Brexit offer over citizens’ rights: what it says and what it means – Peter Foster for the Telegraph (£) EU chief Brexit negotiator calls for “more ambition, clarity and guarantees” from UK – Guardian May gives ground on citizens’ rights but EU demands more guarantees – FT (£) Jeremy Corbyn says PM’s plan for EU citizens is ‘too little, too late’ – Guardian The Brexit divide: a British expat in Spain and a Polish family in UK give their verdict on Citizens’ Rights offer – Peter Foster for the Telegraph (£) It’s not enough to let EU residents stay – they should get the vote, too – Paul Mason for the Guardian UK’s ‘grace period’ a novel way to tackle Brexit challenges – Alex Barker for the FT (£) Daily Telegraph: It is now the EU which is dragging its feet on citizens’ immigration rights But we are not hearing what the EU is prepared to guarantee in return. Mrs May has been criticised for not promising to underpin the rights of three million EU citizens unilaterally. But the Prime Minister is right to insist upon reciprocal arrangements for more than one million British nationals living on the continent before committing the Government to irrevocable decisions… The fact is that no-one now here will be forced to leave after Brexit. A new “settled status” arrangement will even allow the families of EU citizens to join them. EU citizens who remain will have the same rights as British nationals and will, should they choose, eventually be able to apply for a UK passport. There are details around cut-off dates and income requirements that need to be settled; but the benign intentions of Britain towards EU citizens are clear. If the EU wants the issue settled quickly they can make a reciprocal offer – and drop their absurd demand that the EU court’s jurisdiction should extend to the UK after Brexit. – Telegraph editorial Brexit. Maximum media scrutiny for May – very little for Brussels, Paris or Berlin – Andrew Gimson for ConservativeHome Disgrace for EU leaders to snub Theresa May’s offer – Express editorial Conservatives sign deal with DUP to support Government on major votes in Parliament including Brexit… A deal between the Conservatives and the Democratic Unionist Party (DUP) includes an extra £1bn in public spending for Northern Ireland… Under the “supply and confidence” arrangement, the DUP guarantees that its 10 MPs will vote with the government on the Queen’s Speech, the Budget, and legislation relating to Brexit and national security. Once the deal was signed in Downing Street, Mrs Foster returned to Northern Ireland, where talks to restore the power-sharing executive continue.. In a letter outlining the deal to Conservative MPs, Mrs May said both the DUP and the Tories “agree the need for additional financial support for Northern Ireland and jointly desire that this will play a positive role in the efforts to re-establish devolved government”. – BBC News 4 takeaways on the Tory deal with the Democratic Unionist Party – Peter Geoghegan for Politico How long will DUP prop up May and Tories? – Robert Peston for ITV News May’s deal with the Democratic Unionists looks like a two-year affair – Henry Hill for ConservativeHome Coalition of Convenience – The Times editorial (£) Theresa May’s £1billion deal with the DUP is not pretty, but it is best for Britain and means we have viable Government – The Sun says …as some Labour MPs prepare to join SNP, Plaid and Greens to resist single market exit Dozens of Labour MPs are preparing to team up with the SNP, Plaid Cymru and the Greens to back an amendment to the Queen’s speech calling for Britain to remain in the EU customs union and single market. The politicians are hoping to coalesce around wording being put forward by Labour backbenchers, which lays out plans for a softer form of Brexit than is being proposed by both Theresa May’s government and their own frontbench… They want membership of the customs union and of the single market to be maintained, but also urge more respect for the devolved nations in the process of exiting the EU. The amendment could yet win the backing of the Liberal Democrats. – Guardian Anti-Brexit MPs rally across parties to push for ‘soft’ option – FT (£) Labour should lead the drive to stay in the single market. Here’s why – Peter Hain for the Guardian By inviting Jeremy Corbyn to help deliver Brexit, the Tories can tear Labour’s fragile coalition apart – Asa Bennett for the Telegraph (£) Labour’s nonsensical Brexit position is perfect opposition politics – Katy Balls for the Spectator > WATCH via BrexitCentral: Labour’s Caroline Flint MP: Labour needs to be straight with people on Brexit Britain should pay no more than £26 billion for its EU divorce bill – less than a third of the figure Brussels is demanding – warns leading think-tank IEA chief economist Julian Jessop advised Theresa May to walk away “without paying a penny” if Brussels offers Britain a bad deal. The think tank’s calculations are significantly lower than the £50 billion outlined by European Commission chief negotiator Michel Barnier – and there are other reports that the EU will demand up to £85 billion. Mr Jessop said Britain should be expected to pay money it agreed as part of its long-term financial commitments for the EU’s current Multiannual Financial Framework – which runs from 2014-2020… But he slammed Brussels for “going too far” in demanding up to £85 billion and said its calculations were based on Britain continuing to contribute to the running costs of the EU far beyond 2020. He also criticised the EU for demanding the UK to make large upfront payments to cover contingencies that may never arise – such as the loans to bail out the likes of Portugal and Ireland over the last decade. – The Sun We are not supplicants in this negotiation. We have something the EU needs: money. – Christopher Howarth for ConservativeHome > Julian Jessop on BrexitCentral today: €30 billion could be a ‘Brexit fee’ worth paying to secure a good deal with long-lasting benefits UK is top destination for foreign workers – but Brexit makes EU workers consider leaving Britain is by far and away the most popular potential place to move to among foreign workers thanks to the country’s job opportunities, cultural diversity and good work-life balance. But among EU workers already in the country, the picture is different – the majority of highly skilled staff from the continent think Britain is less attractive following the Brexit vote, and one-third of all non-British workers in the UK are looking to leave within the next five years. The figures, from a Deloitte survey, underline the importance of reaching a deal with the EU on the future rights of foreign workers in Britain. “One third of highly skilled international workers say that a strong and positive statement from government about their future status will go a long way to improving the attractiveness of the UK,” said David Sproul, Deloitte’s chief executive for north-west Europe. – Telegraph Skills crunch fear as 1.2m foreign workers mull UK exit – Sky News Best and brightest must be welcome post-Brexit – David Sproul for the Telegraph (£) Prince Charles will ‘use his friendship with world leaders’ to boost British trade after Brexit Clarence House said “as the UK defines new types of partnership”, the heir to the throne will have a “vital” diplomatic part on the global stage.” The Prince of Wales will fill “a very important role to play in defining this new chapter in relations with our friends and neighbours around the world.” Charles’s principal private secretary Clive Alderton added: “As the UK defines new types of partnership with our friends inside and outside the European Union, Their Royal Highnesses are continuing to work hard at home and abroad to protect and enhance our countries’ interests.” – The Sun Tom McTague: 8 things that point to a UK-EU deal on citizens’ rights Ignore the sound and fury, Theresa May’s “fair and serious” offer on EU citizens’ rights gets very close to what Brussels is asking for. Sure, the EU’s chief Brexit negotiator Michel Barnier reacted in the customary manner on Monday afternoon, sending a barbed message on Twitter demanding more “ambition, clarity and guarantees” from the U.K. government than set out, but the U.K.’s opening bid is remarkably similar to the EU’s own proposal, published June 12. There remain a few areas where compromise will be needed and the EU appears confident it can force more concessions from the U.K. than vice versa — particularly after May’s general election gambit backfired… The crunch comes in the continuing involvement of the ECJ. The U.K.’s position on this is clear — no ECJ jurisdiction… The government is open to the prospect of a joint U.K.-EU arbitration committee to ensure the withdrawal treaty is applied. – Tom McTague for Politico Graham Gudgin: The Treasury’s economic models have grossly overestimated the cost of Brexit A report published today by Policy Exchange offers an overdue scrutiny of the reports of the Treasury, OECD and IMF, which provided the most authoritative estimates of the economic impact of Brexit during the referendum campaign. Our report analyses the methods used by the Treasury and the others to reach their pessimistic conclusions. It finds that each of these official reports considerably over-estimated the potential damage to the UK economy, especially in the case of no deal… Our own worst-case prediction is that per capita GDP could be 2 per cent lower by 2025 than would otherwise be the case, but by 2030 would be higher than it would have been without Brexit. If UK firms find new markets more quickly than the slow rate we have assumed, the outlook could be more optimistic than this. – Dr Graham Gudgin for City A.M. Brexit impact estimates were ‘overly pessimistic’: study – Politico Defying gravity: was Treasury’s Brexit analysis too pessimistic? – Dr Graham Gudgin for The Times (£) Rachel Sylvester: Corbyn’s fans are in the dark about Europe The crowd roared with delight as Jeremy Corbyn walked on to the main Pyramid Stage of the Glastonbury festival at the weekend. Tens of thousands of ecstatic followers chanted his name, many wearing T-shirts showing his face and some with “I love Jez” written on their foreheads in glitter… Yet on Europe, the most important issue of the day, Mr Corbyn is, instinctively, completely at odds with many of his youthful fans. How long before they shout betrayal instead of revolution? …Unlike the majority of his young and well-educated supporters, the Labour leader is instinctively hostile to the EU, which he has always seen as part of a neoliberal capitalist plot. Not only did he oppose membership of the Common Market in 1975, he voted against the Maastricht and Lisbon treaties. – Rachel Sylvester for The Times (£) William Hague: Britain can prosper outside the EU – but self-belief does not involve being blind to our own faults It has to be admitted that the combination of events over the last year has not made a good impression on the rest of the world. Most foreign governments and international businesses could not understand why we voted to leave the European Union, having not experienced themselves its disadvantages… I still genuinely believe we have a lot going for us, and that our long-term prospects are, or can be, better than those of most countries. Showing we are able to make the most of that is the way for my old colleagues in the Cabinet to get through Brexit, defeat Jeremy Corbyn, impress the world and unite more of the country in the process. The more difficult the situation, the more self-belief and reasonable optimism are required, along with some noticeable demonstrations that we mean it. – William Hague for the Telegraph (£) Matthew D’Ancona: ‘Stop immigration’ is no longer the Tories’ Brexit rallying cry Identity versus economy? Xenophobia versus trade? This is a real choice and an unavoidable one, whatever some Brexiteers may say about cake retention and consumption. There is no doubt where Hammond stands in this debate… Less appreciated is the pragmatism of Davis’s position. Routinely caricatured as a hardline rightwinger, he is, in fact, fully aware of the economic risks of insufficiently porous borders… Boris Johnson has long been a champion of immigration – often the most outspoken in the Conservative party… There is some evidence that voters’ priorities are shifting, too. Before the election, the polls generally suggested that immigration curbs were their prime concern in the Brexit negotiations. But a YouGov survey in the Times last week found that 58% now believe that Britain should trade freely with the EU, even if the consequence is continued immigration by its citizens – versus 42% who took the contrary view. – Matthew D’Ancona for the Guardian Brexit in brief Border preparations are vital for the best possible Brexit – Charlie Elphicke MP for the Express Brexit could destroy the UK’s food and farming industry – or be the making of it – Felicity Lawrence for the Guardian Britain will get trade deal with US first says influential Congressman George Holding – Express Supermarkets notch up strongest sales since 2012 – City A.M. Consumer confidence collapsed after general election, YouGov finds – Guardian Shadow Brexit Secretary Sir Keir Starmer made a Privy Councillor – GOV.UK