Sign up here to receive the daily news briefing in your inbox every morning with exclusive insight from the BrexitCentral team Tempers flare during Brexit press conference as both sides dig in for an intense game of bluff Michel Barnier, the EU’s chief Brexit negotiator, accused Britain of being “nostalgic” for benefits of EU membership such as being in the single market, as the third round of talks ended in Brussels on Thursday. Mr Barnier said a number of “useful clarifications” were made this week, such as on the status of border workers, social security rights and also dealing with pending cases in the European Court of Justice. – Telegraph >On BrexitCentral: Four key takeaways from the third round of Brexit talks Brexit talks make ‘concrete progress’, UK’s Davis says – Reuters ‘Fruitful’ Brexit talks on Irish issues – Barnier – BBC News Daniel Hannan MEP hits out at the EU for its failure during this week’s talks – Express Divorce bill warning as Brexit talks end in stalemate – Times (£) EU threats to kick Britain out of Europol after Brexit exposed as posturing – Telegraph Britain has a far stronger hand in the Brexit talks than some people think – Telegraph view My PPI claim is like the Brexit deal — it will get done at the last minute – Jane Merrick for the Times (£) For years the EU bent over backwards to please Britain. Now you ask for ‘flexibility’? – Guy Verhofstadt for the Telegraph (£) Inside the Brexit talks: 72 hours in Brussels – Politico Liam Fox insists Britain will not be ‘blackmailed’ by Brussels into Brexit divorce bill – Telegraph (£) EU Brexit negotiator paid £72k-a-year more than British counterpart sparking outrage – Telegraph Guy Verhofstadt accused of going ‘way beyond his pay grade’ after suggesting Brexit talks will grind to a halt in October – Telegraph (£) Michel Barnier and his fellow Eurocrats are being held to account, and they don’t like it one bit – Asa Bennett for the Telegraph (£) Michel Barnier and his EU team truly do excel in being the most inflexible and arrogant bunch of people going – The Sun says …as the EU is left ‘flabbergasted’ after British negotiators dismantle legal basis for divorce bill EU Brexit negotiators were left “flabbergasted” after their British counterparts launched a legal deconstruction of the so-called “Brexit bill” Wednesday as the Brussels talks headed for an increasingly acrimonious impasse, EU sources have told The Telegraph. British negotiators spent three hours launching a painstaking, line-by-line rebuttal of the EU’s demands for €100bn divorce settlement to the barely concealed fury of EU negotiators. – Telegraph (£) …and nearly three-quarters of voters find £30bn-plus Brexit divorce bill ‘unacceptable’ – poll The survey, conducted by ICM for The Guardian, found 72% of people would find the sum “unacceptable”, compared to just 11% who do not. It was reported earlier this month that ministers were willing to pay £36bn to settle Britain’s existing financial commitments with the EU. – PoliticsHome …meanwhile the European Parliament faces overspend of millions on translation budget – with Irish the most expensive The European Parliament has overspent its translation budget by millions of euros after creating a “vanity” website which once again raises questions about the EU’s wasting of taxpayer’s money. – Telegraph (£) Theresa May wants Britain to ‘piggyback’ on EU trade deals after Brexit Britain wants to ‘piggyback’ on EU trade deals after Brexit to give businesses certainty, Theresa May has said. Mrs May is pressing Japan to allow the UK to retain the benefits of a new trade agreement with the EU after it leaves the bloc during a three-day visit to the country. Unless the prime minister is succesful, Britain faces missing out on a £3.6 billion trade boost. – Times (£) …but Emmanuel Macron rejects the PM’s plan to bypass EU Brexit negotiators The French president has personally rejected a reported British plan to bypass the EU’s official Brexit negotiators and hold trade talks directly with member states. Emmanuel Macron said European Commission chief negotiator Michel Barnier was the only point of contact for the EU side in Brexit negotiations – after reports in the British eurosceptic press that the UK would try and strike a deal with France and Germany directly. – Independent Cracks in EU unity are exposed as the head of Calais region praises UK’s post-Brexit border plans The president of France’s northern region has praised the UK’s approach to border controls in Ireland as an encouraging sign that trade between Dover and Calais could flourish after Brexit. Xavier Bertrand, a political heavyweight who served as health minister under Jacques Chirac, told the Telegraph he was greatly interested by the UK’s suggestion that new technology would help create an invisible customs border in Ireland. – Telegraph (£) EU demands billions in foreign aid payments The European Union is demanding billions of pounds after Brexit for aid to Africa, loans to Ukraine and environmental projects across Europe including bridges for wildlife. With Brexit talks becoming increasingly hostile, Michel Barnier, the EU’s chief negotiator, said yesterday that Britain’s refusal to honour long-term spending commitments made before the referendum was damaging trust. – Times (£) Sealed with a kiss: Tony Blair greets Jean-Claude Juncker in Brussels Tony Blair today greeted Jean-Claude Juncker in Brussels with a kiss, before his controversial meeting with the European Commission president on the final day of this week’s Brexit negotiations. Mr Blair was branded the “Remaniac-in-chief” for setting up the meeting in the very Commission building where intense negotiations between 100 British officials and their EU counterparts were taking place. – Telegraph Jean-Claude Juncker rips into Britain over ‘unsatisfactory’ Brexit plan – Telegraph (£) Obstinate Juncker shows we’re right to leave – Iain Martin for the Times (£) Labour is now party of ‘soft Brexit’ and could keep UK in Single Market and Customs Union, Tom Watson says Labour is now the party of “soft Brexit” and could keep Britain in the European Single Market and Customs Union indefinitely, Tom Watson has admitted. Mr Watson confirmed Labour is positioning itself as the party of “soft Brexit” in comments which are likely to spark concerns of a betrayal of Leave voters. – Telegraph (£) Yanis Varoufakis: I told Jeremy Corbyn to be a radical Remainer – Politico Ambrose Evans-Pritchard: Labour’s shift on Brexit would trap Britain in a disastrous quagmire – Telegraph (£) Labour’s plan for Brexit ‘could mean we never really quit EU’ – Gisela Stuart for Birmingham Mail > On BrexitCentral: John Mills: Labour’s new Brexit policy is an unsatisfactory half-way house > On BrexitCentral: Jacob Rees-Mogg: Labour’s new Brexit stance is for metropolitan cappuccino drinkers Japan gives vote of confidence to post-Brexit Britain as Shinzo Abe urges ‘transparent’ negotiations with EU The Japanese Prime Minister has given a vote of confidence in post-Brexit Britain – but said there must be “transparency and predictability” in the UK’s negotiations with the EU to avoid damage to business. Shinzo Abe said he was convinced Britain would continue to be a “compelling” place for Japanese companies to invest after Brexit, but said it was vital for the global economy for the UK to get the right deal from the EU. Japanese companies including Nissan, Honda and Toyota currently have £40 billion invested in the UK, with more than 1,000 companies employing 140,000 people. – Telegraph (£) > On BrexitCentral’s YouTube: Theresa May talks post-Brexit trade and investment with Japan Britain and Japan will work “quickly” to establish a new economic partnership post-Brexit – ITV News A UK-Japan trade deal is possible, although we will need some patience – Andrew Lilico for the Telegraph (£) Theresa May fires starting gun on trade deal with Japan as their PM says he has ‘trust in the UK after Brexit’ – The Sun Japan does more and more business with Britain, and that will only continue after Brexit – James Cleverly MP for the Telegraph (£) …as Aston Martin announces £500m UK-Japan deal Aston Martin has announced a £500m trade and investment deal between the United Kingdom and Japan. The five-year deal will see exports from the UK boosted by new sports cars, components bought from Japanese suppliers and a new Japan HQ created. The investment will benefit its plants in St Athan in Vale of Glamorgan and Gaydon in West Midlands. Prime Minister Theresa May said the deal was “vital” as Britain prepares to leave the EU. – BBC News Weak pound boosts export hopes as a record number of London’s fast-growing businesses are confident about the future London’s fast-growing businesses are more confident about future trade than at any point over the last eight years, according to a survey from private equity firm ECI Partners. Half of the UK businesses surveyed, more than at any point since ECI began its annual study in 2010, predicted sales growth of 20 per cent or more over the next 12 months. – City A.M. Business confidence at record high amongst UK’s growth companies ECI Partners’ 2017 Growth Survey, the only annual survey in the UK focused solely on high growth companies, reveals today that the UK’s growth companies are shrugging off Brexit worries to expand their business through investment and exports, targeting new markets in the USA and Europe. The annual survey, now in its eighth year, polled c. 350 high-growth businesses, over July and August. – ECI Survey …as UK manufacturing defies expectations to hit four-month high British manufacturing exceeded expectations last month as growth accelerated to hit a four-month high, according to a closely watched survey. IHS Markit’s UK manufacturing purchasing managers’ index (PMI) jumped to 56.9 last month, higher than the 55 that had been expected and above the 55.1 reported in July. Any number above 50 suggests growth in the sector’s output. – Telegraph …and a major UK manufacturer says sterling more than offsets risk of WTO tariffs The worldwide demand for his products — and Mr Rea’s own almost Germanic focus on producing specialised industrial goods — mean he is reaping a dividend from the slide in the pound’s value after last year’s vote to leave the EU. “The decline in sterling we’ve seen gives us a cheap currency, similar to the benefit that Germany got from swapping the D-Mark for the euro,” he says. – FT (£) Former New Zealand Trade Minister and High Commissioner joins the Legatum Institute’s Special Trade Commission Sir Lockwood Smith, recently New Zealand’s High Commissioner in London, former Speaker of New Zealand’s Parliament and a former trade minister, has accepted Legatum Institute’s invitation to join their Special Trade Commission. Commenting on Sir Lockwood’s appointment, the Institute’s Director of Economic Policy and Prosperity Studies and Chair of the Special Trade Commission, Shanker Singham said: “We are very fortunate to have Sir Lockwood join our Special Trade Commission. He brings invaluable experience, advice, creativity and perspectives at this critical juncture for the UK.” – Legatum Institute David Davis MP: Brexit presents unprecedented opportunities for Britain and the US The UK’s decision to leave the European Union surprised much of the establishment. But it allows us an unprecedented chance to take control of the important issues that govern Britain’s society and economy. From designing an immigration system that addresses the concerns of ordinary working people and fits the needs of business to ensuring we have regulation more tailored to the UK economy rather than the needs of 28 different economies, leaving the EU provides us with a large opportunity. For the first time in over 40 years, we’ll have the freedom to strike our own trade deals and deepen key relationships with old allies, including our closest ally. – David Davis for CNN > On BrexitCentral’s YouTube: David Davis: Britain will be committed to striking new free trade agreements Andrea Leadsom MP: It’s time to put aside our differences and focus on this great opportunity In recent months, we’ve had a general election, the start of tough negotiations for our departure from the EU, and we have faced a succession of appalling terrorist attacks. We are living in historic and challenging times, and the task ahead of us is enormous. The vast majority of MPs fought the general election on manifestos committed to leaving the European Union and the single market. So no matter what our political differences are, we should be united by this common purpose, and as Leader of the House, I will be determined to see us deliver on the will of the people at last year’s referendum. – Andrea Leadsom for the Times (£) Pieter Cleppe: Why the EU will have to start talking about trade soon As Brexit negotiations continue, a lot of energy is still being spent on procedure. The EU side is insisting on “sufficient progress” on the issues relating to Britain’s exit before there can be any discussion on the UK’s post-exit trade status. The most sensitive issue here is of course the financial settlement, but there are also the rights of citizens and the challenge of making sure that Brexit does not endanger peace in Northern Ireland. Despite the fact that the EU has been quite adamant in insisting on this sequence – exit first, then trade – here’s why the EU is likely to become more flexible… – Pieter Cleppe for CapX Asa Bennett: Ministers can’t take too long leaving the EU – stringing out Brexit is just what Remainers want After last year’s bickering over whether Brexit should happen, the Conservatives will have been pleasantly surprised to find they agree with Labour on where Britain should end up at the end of the process: out of the Single Market and Customs Union. Their main point of difference is around how fast they should get there in any transition period. – Asa Bennett for the Telegraph (£) Liam Halligan: Soft Brexit is neither possible nor preferable. The UK needs a Clean Brexit The term Hard Brexit is now ubiquitous, used freely by the UK’s broadcast news media. The phrase makes leaving the two main legal constructs of the EU – the single market and the customs union – seem like an extreme, ideological position. Hard Brexit suggests isolation and a bleak economic future. Soft Brexit – staying inside the single market and/or the customs union – conveys, instead, a comfortable ongoing relationship with the EU, with Britain still ‘part of the club’. – Liam Halligan for UnHerd Asa Bennett: EU leaders won’t get more money out of Britain by throwing their toys out of the pram Oddly enough, the British are not inclined to hand over their chequebook to the Commission president to fill out as he wishes. They’re happy to pay £36 billion, on the proviso that both sides can start on a free trade deal sooner, but that offer falls foul of Brussels’ beloved schedule for how these talks should go. – Asa Bennett for the Telegraph (£) Ray Kinsella: Why Ireland should seriously consider Irexit All of the economic modelling in the world will not resolve what is an essentially political question. Are Ireland’s national interests best served by being irrevocably integrated into this kind of Europe – one which would fossilise the Border across the island, put at risk our future relationship and multiple linages with our nearest neighbour including an EU-imposed “hard Brexit”. – Ray Kinsella for the Irish Times Tom Harris: Tony Blair is trashing his own legacy by engaging in undemocratic Brexit bashing Neither of the 20th century’s last two Conservative prime ministers had much time for referendums. Margaret Thatcher and John Major preferred a more… well, conservative style of governance, leaving it to parliament to make crucial constitutional decisions on behalf of the electorate. – Telegraph (£) Brexit comment in brief The Conservative Party needs a CANZUK migration deal to attract young voters – Andrew Lilico for Reaction Why is George Osborne always supporting the EU against Britain? – Iain Martin for Reaction Stubbornness will ensure a bad Brexit for the EU and Britain. The only way now is compromise – Stephen Martin for the Telegraph (£) Britain can unlock the talks by offering to settle its Brexit bill – Lord Falconer for the Times (£) Mr Barnier’s state of mind – John Redwood’s Diary Are those talking down our chances of prospering post-Brexit ever going to stop? – Ross Clark for The Spectator Japan is as curious as everyone else: what is Theresa May’s Brexit plan? – Henry Newman for the Guardian Brexit news in brief UK consumer confidence edges up in August – GfK – Reuters Fight to stay in customs union, minister urges Belfast chiefs – Times (£) Chris Williamson: Brexit means leaving Single Market – Guido Fawkes India, EFTA give shape to free trade agreement, to meet soon – Times of India White van men lose no drive from Brexit – Evening Standard ‘The Brits are dawdling and clueless’- German media lashes out at UK Brexit strategy – Telegraph (£)