Sign up here to receive the daily news briefing in your inbox every morning with exclusive insight from the BrexitCentral team Poland offers Theresa May backing over Brexit deal amid rift with EU… Poland’s prime minister has signalled his country will back the UK on a bespoke Brexit deal, at a meeting with Theresa May in Warsaw in which he warned against “very dangerous” EU protectionism. Five senior cabinet ministers accompanied May on her visit to Warsaw, proof of the growing strategic importance of the relationship but which risked being overshadowed by the deepening rift between Mateusz Morawiecki’s administration and the EU over his government’s crackdown on judicial independence… At a press conference at which [Defence Secretary Gavin] Williamson and his Polish counterpart signed a wide-ranging defence treaty, Morawiecki said there were clear joint interests in a bespoke deal. “On economic cooperation, it is hard to find closer partners than we are,” he said. “The UK is a very important trade partner for Poland. The UK is a very powerful country exporting services. It’s obvious for the UK they would like to remain a very strong player in this area.” – Guardian Theresa May offered her dream EU trade deal by Poland in huge Brexit boost – The Sun Theresa May smiles as translator calls her ‘Madame Brexit’ by mistake – Guardian ‘Madame Brexit’ pushes stronger ties with Poland – Politico Press fears ‘Poexit’ over Poland-Europe row – BBC News Poland and the UK are both in conflict with the EU — but there’s not much they can do to help each other – Jan Cienski for Politico Brussels is making Warsaw a pariah and driving a wedge between East and West – Times leader (£) May’s Polish overtures strike a dissonant chord – FT view (£) The Guardian view on Poland: Brexit will worsen the EU’s dilemmas – Guardian editorial …with EU set to offer Britain a stripped-back Canada-style trade deal if it does not produce bespoke proposals… The EU is set to offer Britain an off-the-peg trade deal if the UK can’t unite behind a Brexit vision, it emerged today. Brussels officials have reportedly accused Britain of being in “Brexit la-la land” and are concerned that ministers are warring over European trade. They will tell the UK to sign up to a Canada-style deal which would allow free trade in goods but not in services, the Financial Times reported. The plan is a fallback if Theresa May doesn’t put forward a concrete proposal for a bespoke deal. David Davis has previously insisted Britain will get a “Canada plus plus plus” agreement allowing free trade in every sector. But EU negotiators say they are fed up with infighting in the Cabinet about how far Britain will diverge from European rules under a future trade agreement. If they don’t agree a bespoke deal within the next few months, Brussels will instead propose an agreement based on Ceta, the EU-Canada deal. – The Sun EU prepares Canada-style Brexit deal for UK – FT (£) Top French politician slams EU and says it must give UK special Brexit deal – Express …while Spain promises ‘reasonable’ outcome in Gibraltar Madrid offered the U.K. reassurances today that it is seeking a “reasonable” outcome on Gibraltar in Brexit talks after it secured the backing of the European Union on the Rock’s status in any transition agreement between Britain and the bloc… Jorge Toledo, whose official cabinet title is Secretary of State for the European Union, said the previous bilateral agreement between Spain and the U.K. on Gibraltar foreseen in the April guidelines was meant to cover any agreement, including a transitional agreement. Gibraltar will therefore be excluded from any transitional agreement the day the U.K. exits the EU, Toledo said, unless London and Madrid agree otherwise. While insisting on its long-term sovereignty claim on Gibraltar, Madrid has been keen to send the message that it doesn’t intend to leverage the Brexit negotiations to push its claim in the short term. – Politico Brexit progress gives UK shoppers Christmas confidence boost U.K. consumer confidence edged higher this month after Brexit talks finally showed signs of progress. YouGov and the Centre for Economics and Business Research said their optimism index rose from its lowest level since the aftermath of the Brexit vote, driven by the breakthrough in the government’s negotiations with the European Union and greater confidence in property prices… A separate report from Lloyds showed business confidence climbed to a five-month high in December. – Bloomberg Business optimism on the rise as hopes of improved growth re-emerge – Telegraph 64 Labour MPs defy Jeremy Corbyn and vote for UK to stay in the customs union after Brexit The Labour rebellion highlighted deep divisions in the party over Brexit – with senior figures pushing for a softer line on the EU. Mr Corbyn ordered MPs to abstain on an amendment to the EU Withdrawal Bill put forward by ex-minister Chris Leslie. But 64 of them ignored the whip and joined the SNP and Lib Dems to support the controversial amendment. Keeping Britain in the customs union would stop us striking trade deals after Brexit and force us to keep EU rules. Labour bosses have previously ruled out staying in the customs union – but say they want to form “a” customs union with the EU. The rebels last night included high-profile figures such as Stella Creasy, Chuka Umunna, Rachel Reeves and Liz Kendall. They were joined by just two Conservatives – leading pro-EU rebels Ken Clarke and Anna Soubry. Other rebellious Tories including Dominic Grieve and Nicky Morgan sided with the Government to oppose the amendment. – The Sun Anti-Brexit MPs in Open Britain plot to change bill to stop UK leaving EU – Express UK to get its iconic dark blue passport back Brits will get their iconic dark blue passports back after Brexit, ministers announce today… Immigration Minister Brandon Lewis said: “One of the most iconic things about being British is having a British passport.” From the first day of Brexit, March 29 2019, burgundy-coloured new passports will still be issued, but no longer with any EU insignia on them. And five months later in October – when the current passport manufacturers’ contract expires – all new British passports will be issued in the dark blue colour that was once famous across the globe. In a second victory for The Sun’s determined 17 month campaign, the Home Office has also decided to hand over blue passports early… In a special dispensation, any British citizen will be able to request to a new blue passport even if their old burgundy ones have many years left to run. – The Sun British passports will be navy blue after Brexit says Home Office – Guardian Britain’s blue passport is coming back after Brexit – but will it be made by a French company? – City A.M. UK passports are symbols of sovereignty for Britain — the British people voted to be free from the European Union – Immigration Minister Brandon Lewis for The Sun Catalonia’s pro-independence parties declare victory in critical regional election Catalonia’s ousted president, Carles Puigdemont, last night hailed a triumphant comeback for independence parties in hotly disputed elections called by the Spanish government, a victory that opens up a dramatic new chapter in the secession crisis. Appearing among supporters in Brussels to cries of “President!”, Mr Puigdemont declared the “Catalan Republic” victorious in the face of the direct rule imposed by the government of Mariano Rajoy… He demanded the “legitimate” government now be fully restored and the prosecutions of independence leaders dropped. Mr Puigdemont, himself facing detention in Spain on charges of sedition and rebellion, also issued a call to the European Union. Europe had to “take note” that the “receipt of Rajoy does not work,” he said, calling for a political solution to the impasse. The secessionist parties defied consistent poll predictions of a hung parliament to secure an absolute majority of 70 seats out of 135, and 47.5 percent of the popular vote. Meanwhile the unionist bloc took 57 seats, with 43.4 percent of the vote. – Telegraph Catalan pro-independence parties keep their majority in snap poll – Guardian Catalonia election: Puigdemont hails ‘defeat’ for Spanish state – BBC News Catalan political landscape as divided as ever – BBC News 5 takeaways from the Catalan election – Diego Torres for Politico EU plans lavish €3M ‘Europa Experience’ in Estonia The EU plans to splash out nearly €3 million to transform its office in Estonia into a high-tech visitor center to show off “the importance and relevance of the European Parliament and the EU.”… The “base investment” is estimated at €2.8 million, the document said, while the annual running costs — 60 percent of which would come from the Commission, 40 percent from the Parliament (and 100 percent from the taxpayer) — are estimated at €580,000 per year… “Wasting taxpayers’ money on fancy technical gadgets in European Parliament information centers won’t generate public support for the EU,” said German MEP Bernd Kölmel, of the Euroskeptic European Conservatives and Reformists group… The new space would include a “role-play game” to let schoolchildren “become MEPs for a day,” an “upgraded multifunctional conference space,” interactive MEP profiles and a 360-degree cinema “with an immersive and emotional film presenting the European Parliament as a powerful, young, and transparent institution that responds to the needs and questions of its citizens.” – Politico Iain Martin: Michel Barnier wanted a free trade deal on financial services with the US The pattern is well-established. The EU’s chief negotiator makes a robust declaration and ultra-remainers leap on it, as though Michel Barnier is the oracle and not a key participant on one side of the negotiations with a vested interest. This week the process was repeated when Barnier declared that it was impossible for financial services to be included in a free trade agreement between the European Union and the UK… But what’s this? My colleague at The Times Raphael Hogarth spotted a speech made by, er, Michel Barnier in 2014 in Washington when he was EU Commissioner responsible for the internal market and services… Under the heading, “Why we need to include financial service regulation in TTIP”, Barnier said in 2014: “Joined-up markets need joined-up regulation and supervision. The EU and the US agree on the overall objectives of sound and resilient banks and financial markets. But we have and will keep different regulatory procedures and frameworks… We will of course never agree on everything and neither jurisdiction should be able to force the other to follow its rules. But we can try harder and we could do better.” – Iain Martin for Reaction Robert Taylor: It’s time for shy Leavers to stand up and be proud [Leavers] are heartless, we’re told, because many object to free movement of people (some Remainers freely accuse Leavers of racism), and brainless because of the supposed harm Brexit will do to the economy. Pretty damning stuff. No wonder Leavers keep quiet. And no wonder they were expected to lose. The truth, of course, is that most Remainers are ignorant about Leavers’ reasons for voting as they did – reasons that were often thoughtful, sensible and honourable… Britain’s Eurosceptics have a history of getting it right. Go back 30 years, when they were appalled at the idea of Britain’s joining the European Exchange Rate Mechanism, which the experts said would safeguard our economic future… Ten years on, and the same experts said that we must join the Euro, for fear of being left behind by our EU neighbours… Yet, while getting it right for 30 years, Eurosceptics – and now Leavers – have been subjected to insults, denunciations, patronising laughter and name-calling… Don’t be shy, Leave voters. You’ve been right all along. Be proud! – Robert Taylor for the Telegraph (£) Nils Pratley: Bank of England’s olive branch increases chance of Brexit deal City can live with Smart move by the Bank of England. While Michel Barnier, the European Union’s chief Brexit negotiator, is warning about UK banks losing their passporting rights to operate in the single market, Threadneedle Street is trying to position itself as a model of sweet reasonableness. All being well, EU investment banks operating in the City will be able to carry on after Brexit almost as if nothing has changed… The one big condition is that the Bank assumes “an appropriate degree of supervisory cooperation” from EU countries and regulators. If the Brexit negotiations turn out horribly, expensive subsidiaries will be back on the table. Is this a case of the Bank taking the moral high ground, or is it just acting in the UK’s interests? Actually, both. – Nils Pratley for the Guardian Bank of England, Treasury and FCA act in unison to charm EU banks – FT (£) EU’s MiFID deal on Swiss exchanges sends signal for Brexit talks – Bloomberg Switzerland hits out at EU ‘discrimination’ in finance dispute with Brexit implications – FT (£) Philippa Stroud: Legatum’s pro-EU enemies are smearing us to try to undermine confidence in Brexit Before the referendum, Legatum Institute did not have a view on Brexit either way… But as the complex Brexit process began, we have sought to help… With his colleagues on Legatum’s Special Trade Commission, Shanker [Singham] has challenged orthodox views about Brexit… Their insight is that the highly-regulated trading bloc created by the EU is, inadvertently, creating a long-term problem for our economies that could ultimately cost ordinary people their jobs and their livelihoods, and that if Brexit is properly handled, opportunities abound in a number of settings that could catalyse a number of stalled trade initiatives that have contributed to a slowdown in global growth. They argue that the answer to this economic cul-de-sac is a new approach to trade that lets countries like Britain excel in their competitive advantages… This is a heretical view to many of those who have dedicated their lives to building the EU’s regulatory and trading system. They undermine our work because it is a dangerous rival to their own world view. And they smear Legatum to try to undermine confidence in Brexit. – Baroness Stroud for ConservativeHome Brexit in brief Why the regulatory Brexit deal should be based on mutual recognition – and no material regulatory divergence – Mark Hoban for ConservativeHome Britain and US hold crucial secret trade meetings on post-Brexit ‘special relationship’ – Express Parliament releases Brexit impact reports, excluding sensitive material – FT (£) EU and Mexico miss breakthrough in high-level trade talks – Politico And finally… Brexit the Board Game – Shortlist/Vimeo