Cabinet backs Divergence: Brexit News for Friday 23 February

Cabinet backs Divergence: Brexit News for Friday 23 February
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Brexiteers claim victory as ‘War Cabinet’ agree a common position – and it favours divergence…

‘Divergence has won the day’, a source told me after the inner Cabinet’s Brexit away day at Chequers. I am informed that Theresa May’s view expressed at the meeting is closer to the Boris Johnson position than the Philip Hammond one. However, I am also told that there were ‘no winners’; unsurprisingly, no one is getting everything that they wanted. In the words of one insider, ‘everyone gave some ground’. But I understand there is now a position that May can present to the Cabinet next week. This is based around the UK’s opening position being that it wants mutual recognition on goods standards. However, the UK will declare that it intends to maintain standards, and that there’ll be no race to deregulate. – James Forsyth for the Spectator

Cabinet Brexiters are happy following the Chequers summit, with one senior Brexiter telling Guido: “Divergence has won”. A Cabinet source says there was an agreement on mutual recognition on good standards. There will be a declaration that the UK is going to maintain standards. The room agreed there will be equal dispute settlement arrangements and, crucially, the right to diverge in that framework. A second Cabinet source says: “Brexiteers have won a crucial argument tonight. It was agreed that we would take back control of our laws. Divergence won the day.” We shall see, but this sounds like good news and Cabinet Brexiters are pleased with the outcome. – Guido Fawkes

  • Theresa May secures Brexit war Cabinet backing for ‘managed divergence’ in future EU relationship – Politico
  • Brexit war cabinet agrees to take back control of laws – Daily Mail
  • Divergence wins: Brexiteers claim victory after Chequers talks – Telegraph (£)
  • Chequers Brexit talks – a happy ending? – Laura Kuenssberg for BBC News
  • The Chequers summit agrees the Davis solution – Paul Goodman for ConservativeHome

…while Jeremy Corbyn is set to back staying in a Customs Union…

Jeremy Corbyn will shift Labour’s position on Brexit on Monday, arguing that — if the party were in government — it would seek to keep the UK in a customs union with the EU. Mr Corbyn’s current position is that staying in “a” customs union, rather than “the” customs union, is a “viable end position” — and should not be taken off the table. The subtle shift to more decisive support for a customs union with the EU could pave the way for the Labour party to vote alongside a dozen Tory Europhile rebels on amendments to the customs bill in the coming weeks. The bill gives the government the ability to establish a standalone customs regime after it leaves the EU. – FT (£)

  • Jeremy Corbyn ready to show Brexit hand – Politico
  • Guido is told that Unite’s influence has been key to the decision-making process – Guido Fawkes
  • Labour says it would seek to strike joint trade deals with EU – Independent

…which puts Theresa May at risk of Commons defeat

Jeremy Corbyn could use a key Brexit speech on Monday to pave the way for Labour to inflict a Commons defeat on the government, by backing a rebel Tory amendment seeking to keep Britain in “a customs union”. With Theresa May expected to unveil her vision for departure from the EU next week, following eight hours of talks with key ministers at the prime minister’s Chequers country retreat, she now faces the prospect of Labour sabotaging the carefully choreographed process. In what will be a closely watched speech, Corbyn is expected to signal that Labour is prepared to back the UK staying in a customs union with the EU. – Guardian

  • Corbyn support for a customs union sets up Brexit showdown – The Times (£)

May reportedly planning U-turn to back rights for EU migrants during transition…

EU citizens who arrive in Britain during the post-Brexit transition period will be allowed to stay permanently under a U-turn planned by Theresa May. Three weeks ago the prime minister caused surprise by saying that those arriving after March 29 next year should not have the same rights as those who came before. The Times has learnt that Downing Street is now examining proposals to make a unilateral promise to EU citizens that they can remain if they arrive before the end of the transition period. Such a period was due to last until the end of 2020 but this week the government was accused of preparing the ground for an open-ended transition. – The Times (£)

…as the highest number of EU nationals leave the UK in a decade (although net EU migration is still 90,000)

The number of EU citizens leaving the UK is at its highest level for a decade with 130,000 emigrating in the year to September, figures show. But far more EU nationals (220,000) moved to the UK in the same period, the Office for National Statistics found. It means net EU migration – the difference between arrivals and departures – was 90,000, the lowest for five years. The ONS said Brexit could be a factor in people’s decisions to move. Nicola White, head of international migration statistics at the ONS, said migration was complicated and could be influenced by lots of different reasons. The figures also show that more British people are emigrating than are returning to live in the UK. – BBC

Furious MPs demand answers from the Treasury over suggestion Brexit bill could rise by another £5 billion

Furious MPs demanded answers from the Treasury after ministers signalled Britain’s EU divorce bill could rise by a further £5billion. Brexit Minister Robin Walker refused to rule out an extra payment if the transition period runs beyond December 2020. The declaration forced Tory veteran Bill Cash to storm: “This looks like something out of Roald Dahl’s Tales of the Unexpected”. The European Scrutiny Committee warned prolonging the “status quo” transition beyond the EU’s preferred end date of December 31 2020 could leave the UK on the hook for extra contributions to the Brussels budget. The PM has only agreed to cover the EU budget to the end of 2020 as part of a £35-£39 billion divorce bill. – The Sun

Leaked documents show EU capitals considering trade deal with UK

EU countries are defying their own chief negotiator and mulling a bumper trade deal for Britain, The Sun can reveal. Secret documents show European capitals are considering a far-reaching pact based on their past negotiations with the US. A “Brexit trade note”, meant for diplomats’ eyes only, suggests a Canada-style (CETA) agreement championed by Michel Barnier would be insufficient. Instead it is far more flattering of a deal based on the Transatlantic Trade and Investment Partnership (TTIP), which was thrashed out with Barack Obama but never signed. The paper, produced by the Belgian government for a meeting of diplomats last week, will prove a huge boost to British negotiators and gives new insight into EU thinking. It assesses the economic impact Brexit will have on three key European export industries – cars, chemicals and food. – The Sun

Airbus CEO vows to stay in post-Brexit UK for a very long time

Airbus SE Chief Executive Officer Tom Enders personally promised the U.K. government the company plans to retain its British operations “long into the future’’ in a turnaround from a staunch critic of the divorce from the European Union. Enders’s promise was made in a letter this month to Business Secretary Greg Clark, according to an official who declined to be named citing private correspondence. It’s a critical development given how vocal Enders has been in the recent past about condemning Brexit as a threat to manufacturing. – Bloomberg

Jean-Claude Juncker prepares to unveil statue of communist Karl Marx…

Jean-Claude Juncker has been accused of ignoring more than 100 million victims of communism after it emerged that he is to unveil a statue of Karl Marx. The controversial President of the European Commission is listed to open an exhibition to the father of Communism in Trier to mark the 200th anniversary of his birth there on 5th May. It includes unveiling a statue funded by the Chinese government to the man who gave birth to a destructive ideology that has caused mass murder and imprisonments around the globe. The plans have provoked outrage in Britain and across Europe especially in the former Communist controlled Eastern European countries where the far Left tyrannies murdered and imprisoned millions of people. – Express

…as Brussels signs deal to promote EU ‘propaganda’ at football matches

Flagship football tournaments such as Euro 2020 face being used to push pro-EU propaganda, under plans that will see “European values” promoted at matches. Brussels has signed an agreement with Europe’s governing body UEFA, which also runs the Champions League, to use major sporting events to “portray a positive image of Europe”. Volunteers from the EU’s Solidarity Corps, Jean-Claude Juncker’s taxpayer-funded version of the American Peace Corps, will be conscripted to “participate in the programmes carried out at UEFA EURO 2020 venues”. – Telegraph (£)

Jacob Rees-Mogg: Here’s what the Brexit letter to Theresa May signed by 62 Tory MPs really was about

I joined a group of 62 Conservative MPs who wrote to the Prime Minister last week to show our support for her vision for Brexit. Mrs May, like us, wishes to take back control of our borders, laws and money from the European Union. The letter comes at a crucial time for the Brexit negotiations. The talks are now moving on to discuss trade. What type of trade deal we will have with the EU and, equally importantly, whether we retain the ability to strike our own trade deals with our friends in the rest of the world. The Prime Minister’s vision for the UK as a global trading nation makes perfect sense. Conclude a high-quality trade deal with the EU while retaining the ability to conclude agreements with others. Our letter was well received, as letters of support generally are. – Jacob Rees-Mogg MP for the Sun

Fraser Nelson: The stealthy rise of Martin Selmayr, the ‘monster’ of Brussels, shows why we must go

They call him ‘Rasputin’, and the stitch-ups he engineered were a key factor in 2016’s Brexit vote It was the perfect coup. Until recently, no one imagined that Martin Selmayr had any ambitions to run the European Union civil service – or that such a job could be used as a political power base. When he was named as Eurocrat-in-chief, two days ago, his enemies were astonished. He had not been on any shortlist; they had no time to organise against him. But the most ambitious man in Brussels – nicknamed “Rasputin,” “the monster” and worse – will soon be in charge of the whole machine with its 32,000 staff. As one EU official put it: “he takes all the power – completely.” – Fraser Nelson for the Telegraph (£)

  • How Martin Selmayr became EU’s top (un)civil servant – Politico
  • Martin’s mission: The Juncker legacy – David Herszenhorn for Politico

Raphael Hogarth: Brexit orphans won’t hold much sway in Britain’s divorce deal

Britain loves to divide and rule, and so it is with Brexit. As hairline cracks appear between the positions of the EU27, many in Whitehall are quietly hoping to amplify more sympathetic voices and use the nascent divisions to Britain’s advantage. There are countries that want a more flexible approach than France and Germany and they insist that they will be heard. “This idea that it will be only Paris and Berlin driving this is total bullshit,” one EU official scoffs. At a recent meeting of the EU27 in Brussels a third of member states expressed interest in a deal that does more to liberalise trade in services, where most of Britain’s money is made, than any previous agreement. Among them are the states that one diplomat dubs the “orphans of Brexit”, whose economies are both small and exposed: Malta and Cyprus because of the economic legacy of empire; Luxembourg because of its links to the City; Ireland because it is so close in every way. – Raphael Hogarth for The Times (£)

Comment in Brief

  • The UK needs to limit immigration to levels that bolster the economy – The Sun editorial
  • Prepare for a 5-year transition (at least) – James Blitz for the FT (£)
  • Rees-Mogg and friends are playing with fire – Iain Martin for The Times (£)
  • Why we will be better off out of the EU – John Redwood’s Diary
  • As May’s top team met at Chequers, Brains for Brexit launched in London – Andrew Gimson for ConservativeHome
  • Immigration is still a headache for ministers – Catherine Neilan for City A.M.
  • The EU Single Market was never a winner for Britain – John Redwood MP for The Commentator
  • Westminster needs to spell out what it wants after Brexit – Jim Gallagher for The Times (£)

News in Brief

  • ECB in rare attack on US over dollar – The Times (£)
  • Liam Fox ‘seething’ over Brexit ban on trade deals – Evening Standard
  • Brexit could trigger 15-mile queues and make it easier for illegal migrants to enter UK, scaremongers deputy Calais mayor – Independent