Theresa May to deliver major Brexit speech next Tuesday The prime minister will make a much anticipated speech “setting out more” on the government’s Brexit plans next week, Downing Street has confirmed. Theresa May, who has said she will trigger Article 50 – the formal process for leaving the European Union – by April, will make the speech on Tuesday. The government has been under pressure to spell out its negotiating stance but says it cannot show its hand in detail… On Thursday, her official spokeswoman said: “She will be making a speech on Tuesday, setting out more on our approach to Brexit, as part of preparing for the negotiations and in line with our approach for global Britain and continuing to be an outward-looking nation.” – BBC European judges will rule Britain for years, claims a key EU leader… Joseph Muscat, prime minister of Malta, which holds the EU presidency, said that the European Court of Justice (ECJ) would have to continue “dishing out judgments” if the UK wanted transitional arrangements to allow important sectors to adapt… Mr Muscat’s comments could infuriate those who voted for Brexit. A poll immediately after the referendum showed that most Brexiteers had voted to regain British sovereignty. European court rulings have caused controversy… Steve Baker, a Conservative MP, said allowing EU judges to decide how British companies could trade was incompatible with Mrs May’s “absolute statement” on ridding the UK of the ECJ. Dominic Raab, a Tory MP and former Foreign Office lawyer, disputed the Maltese claims. “Pontificating about dispute resolution mechanisms that might apply, if transitional arrangements prove necessary, is just peacock diplomacy. In truth, as our Maltese friends know, there is enormous scope for a deal that is good for all sides,” he said. – The Times (£) Merkel says EU 27 must show united front in Brexit talks – Reuters EU leaders planning to turn Brexit talks into a hardball game of bluff in a bid to make Britain “blink first” – The Sun …as remaining EU members face paying a ‘Brexit tax’ to fund budget shortfall The European Union could impose taxes on citizens of member states under radical proposals announced yesterday to help make up a funding shortfall in the wake of Brexit… Brexit is a key factor driving the proposed reforms as the EU looks to fill the gap in its budget that will be left by the UK’s contributions, an estimated £8bn a year. One proposed tax in the report is EU-wide VAT of 1 or 2 per cent, which would be deducted from national VAT and paid directly to Brussels… An alternative proposal is for standardised petrol tax to be paid directly to Brussels… Another suggestion is a federal corporation tax… But the proposals have already run into opposition from Germany, Europe’s largest economy. – Daily Telegraph UK companies would cope with “hard Brexit”, says Fitch boss… British companies across all sectors will remain resilient after the country leaves the European Union, even if the UK heads for a “hard Brexit”, according to Fitch. Officials at the rating agency said businesses would cope even if Britain did not secure a transition deal with Brussels and fell back on World Trade Organisation (WTO) rules for trade with its former EU partners. “We’ve not seen any sector where Brexit will be the bogeyman that causes everything to fall over,” said Alex Griffiths, a group credit officer at Fitch. – Daily Telegraph Arch-Remainers Ryanair row back from Brexit gloom with new London services – Bloomberg London brushes aside Brexit to keep tech crown – Evening Standard Five signs this week that the UK economy is thriving post-Brexit – Daily Telegraph Primark enjoys a Brexit sales bounce – NewsTalk Record number of Chinese tourists flocking to London after Brexit sparks plunge in the pound – Evening Standard “Brexit tourists” from Hong Kong, China and UAE spent millions on British high streets this Christmas – City A.M. FTSE 100 extends historic record run and pound regains momentum as markets digest retail bonanza – Daily Telegraph …as Trump’s expected EU ambassador confirms the UK is “at the front of the queue” President Obama’s claim that the UK would be at the back of the queue for a new US trade deal if it left the EU has been challenged. Ted Malloch, who is expected to be confirmed as Donald Trump’s ambassador to the EU, said: “The UK is now at the front of the queue.” Earlier in his Daily Politics interview, he confirmed he had met Mr Trump about the role, but told presenter Andrew Neil, “It can’t be confirmed until it comes from his mouth.” – BBC > WATCH on YouTube: Trump’s expected EU ambassador confirms Britain “at the front of the queue” Daily Express reiterates Syed Kamall’s call on BrexitCentral for Theresa May to be ready to walk away without a deal Syed Kamall urged the Prime Minister to be ready to face down demands from European leaders for an EU exit deal that would punish the UK for voting to leave the bloc… Mr Kamall advised Theresa May to be ready to fight hard in the negotiations, which will begin after she triggers the EU’s Article 50 departure clause. “We should enter these negotiations with an intention to succeed but not being afraid to walk away if we don’t get a deal we are happy with,” the MEP wrote in an article on the Eurosceptic internet site BrexitCentral. – Daily Express Theresa May must be ready to quit EU without trade deal – Daily Express editorial > Syed Kamall MEP on BrexitCentral yesterday: Here’s how Theresa May needs to approach the Brexit negotiations > Hugh Bennett on BrexitCentral in December: The UK must be fully prepared to walk away with nothing to have any credibility in the negotiations to come City should push for “bespoke equivalence”, not passporting, say lobby groups UK financial services firms should seek a bespoke form of equivalence to maintain access to European markets, according to a pair of new reports published by City lobby groups. A paper written by law firm Norton Rose Fulbright on behalf of the Financial Services Negotiating Forum and published on January 12 described regulatory equivalence provisions within the current European model as “patchwork”. It said this meant that it was not a “silver bullet” solution that would entirely replace passporting for City firms. The City should instead pursue a bespoke “building blocks model” to enable firms to access the European market post-Brexit and in the absence of passporting rights, the report suggests. In a separate report published on January 12, TheCityUK also called for “a bespoke agreement that delivers mutual market access”… Daniel Hodson, the chairman of the FSNF’s Executive Committee said: “The building block model provides a logical and practical approach which could be of use not just in the Brexit negotiations but a really useful tool for the development of global regulation.” – Financial News Brexit research group calls for bespoke equivalence deal to give financial sector access to Single Market – City A.M. Britain’s finance industry scales back EU market access demands – Reuters Government urged to abandon EU fisheries policy that has cost British fishermen £80 billion Britain’s blighted fishing industry has lost more than £80 billion from EU boats trawling UK waters, a damning new report finds. Data compiled by the Fishing for Leave group shows European fishermen have taken an average of £3.5 billion worth of fish out of UK waters since 1983… Fisherman Alan Hastings told The Sun: “Our report and database shows the colossal level of resources and billions of pounds that have been robbed from the UK every year through our membership of the EU and disastrous Common Fisheries Policy… If Brexit was about “taking back control of our borders” then fishing is the “acid test” of Brexit. Fishing could be a beacon of success for the government.” – The Sun Millions of Brits face higher car premiums because of an EU law forcing firms to compensate uninsured drivers if they are hit by another uninsured driver – The Sun Scottish Parliament sets up a cross-party group on Brexit The group is to “remain neutral” on the issue, but will “act as a watchdog” over the process and contact other European countries and institutions to examine “the best ways forward”. The eight-member group will be headed by SNP MSP Alex Neil, who has spoken out about his backing for Brexit. Holyrood’s standards committee agreed to approve the group on the condition its membership is reviewed annually. The group will be led by Mr Neil, with another Brexiteer, Tory Oliver Mundell, as secretary. – BBC “Norway-style” Brexit plan impossible, Oslo tells Scotland – Politico Nick Clegg admits the Queen did have a go at him over the EU The “grumpy” Queen did have a go at Nick Clegg over the EU, the former Lib Dem leader has finally admitted. The ex-Deputy PM has told friends Her Majesty attacked the 28 country union during a lunch with him. She accused the rise of Brussels for downgrading the role of the Commonwealth, which she leads. Mr Clegg previously denied any dust up with the 90-year-old monarch when The Sun first broke the bombshell story that revealed her strong Euroscepticism. – The Sun Brexit will be good for universities, Oxford’s new Head of Brexit strategy says British universities will establish global networks and recruit the world’s “best and brightest” students outside of the European Union, Oxford University’s head of Brexit strategy claimed yesterday. Speaking publicly for the first time since his appointment in December, Professor Alastair Buchan told the Education Select Committee that membership of the EU had “sidelined” Canadian and American researchers who used to come to work at British universities, as freedom of movement made it easier to recruit Europeans. “We had really good collaborations, which hopefully in this Brexit climate might be reinvented, because that movement of English-speaking medicine was actually a casualty of joining Europe,” Buchan said. – Daily Telegraph Birmingham City University launches Centre for Brexit Studies to study Brexit impact – Politico Michael Gove MP: May must deliver full Brexit, not fake Brexit The public have told us what they want. We must get on with leaving the EU. Completely. In months not years… We need to win back respect for politics by respecting how the public voted. That means full Brexit, not fake Brexit. We won’t be in the single market. Because being in means accepting the unfettered free movement of people and the unchallenged supremacy of EU courts… We won’t be in the customs union. Because that means accepting high tariff barriers towards the rest of the world and no freedom to strike our own trade deals. – Michael Gove MP for The Times (£) > Michael Gove MP for BrexitCentral on Monday: A Fake Brexit would not allow politicians to deliver the change which people voted for last year Peter Foster: Theresa May must silence EU paranoia over Brexit As Theresa May prepares to deliver a long-awaited keynote speech on Brexit next Tuesday, the reality is that Europe views Britain with a mixture of anger and suspicion… Paranoia? Perhaps, but this is why Europe viewed British attempts to seek an early deal over the rights of EU expats as an attempt to create divisions among the 27 member states. The EU 27, while disciplined over their stance of ‘no negotiation before notification’, are deeply split on pretty much everything else, from values to austerity… There is now an urgent need for a reset – starting with Mrs May’s big speech next week… Part of settling Europe down will also require Mrs May to stop dodging the logical consequences of her own Brexit ‘red lines’ on immigration and sovereignty and end her constant evasions over single market membership. We are clearly leaving; Mrs May needs to say as much. – Peter Foster for the Daily Telegraph (£) The PM is being coy about what Brexit means because she knows that words move markets – Ed Vaizey MP for International Business Times Iain Martin: Carney right. Brexit bigger risk to EU than the UK London as a global financial hub is the centre of the eurozone. The eurozone is really a giant debt machine. The City makes it go round, because it clears and settles so much euro-denominated business. If the ECB decides that London is forbidden from clearing and settling euros (and it is difficult to see how it could do this without also cutting out New York) then it is creating a recipe for a massive shock to the eurozone financial system, as access to capital and expertise disappears… Punishing the UK and the City would be an act of EU self-harm. That is self-harm of which the EU is capable. They invented the eurozone after all. But we should be clear. The eurozone has a problem and would be better off with a sensible deal. – Iain Martin for Reaction Joshua Chaffin: Buoyant economy steels Brexiters’ resolve on EU talks ahead Patrick Minford takes great pleasure in the British economy’s buoyancy since the UK voted to leave the EU, which he contends has steeled resolve to follow through with Brexit. Mr Minford, a one-time adviser to Margaret Thatcher who has become one of the most prominent economists in the Brexit camp, focuses with particular zeal on the inaccuracy of the pro-EU side’s predictions that a vote to leave would hammer confidence… “They are hoping slower growth will turn public opinion against Brexit,” he said. “If these guys were right, we’d be seeing it by now.”… But there has been no shock to the economy since the June referendum. Bolstered by unexpectedly strong consumer spending, Britain is now on track for roughly 2 per cent growth in 2016… At present, the stream of good economic news shows little sign of drying up. – Joshua Chaffin for the FT (£) Brexit in brief Lords must look before they leap into blocking Brexit – John Penrose for The Times (£) Carney can see what EU officials refuse to: that they need the City – Christian May for City A.M. Free trade doesn’t require common rules – Douglas Carswell’s blog Brexit gives us the chance to get our immigration policy right – Andrew Lilico for CapX Theresa May will waste the opportunity of Brexit if she doesn’t defend wealth creators – Nigel Farage MEP for the Daily Telegraph (£) BBC silent over EU arrest warrant sham – Rory Broomfield for CommentCentral European Parliament eyes a practical Brexit – Ryan Heath for Politico Giving Angela Merkel an award for European diversity sums up what’s wrong with the EU – Asa Bennett for the Daily Telegraph (£) Sir Tim Barrow profile: the invisible ambassador – Marc Bennetts for Politico “Jeremy Corbyn has just waved a white flag over Brexit” – Tim Farron interview on PoliticsHome Further Brexit court cases to be launched in Dublin and London – The Guardian EU chief in shock admission: Brussels’ Single Market ‘does not function properly’ for UK – Daily Express Austria wants to discriminate against EU workers – EUObserver Feeling the Brexit pinch? Jamie Oliver heads to Davos – Steerpike on The Spectator Coffee House Brexit “upheaval” may be worth it for the North, says Archbishop of York – Yorkshire Post Labour must stop undermining its own Brexit policy in public, warns leading trade union backer – Huffington Post