Sign up here to receive the daily news briefing in your inbox every morning with exclusive insight from the BrexitCentral team Withdrawal Bill clears Committee Stage in the Commons Yesterday marked the last day of committee-stage consideration of the EU (Withdrawal) Bill. The debate focused on amendments created by Conservative Sir Oliver Letwin, now in the name of the government, which puts an exit date on the face of the bill but which allows that date to be amended by ministers. That vote was a comfortable win for the government. But much of the debate today has looked at amendment 7 again – the amendment guaranteeing a statutory vote on the final Brexit deal, which resulted in a defeat for the government. Earlier, Conservative Dominic Grieve – the author of that amendment – warned the government that “kicking hornets’ nests is not a very good idea” amid concerns ministers were looking to backtrack on the statutory vote. – BBC Government backs down on Brexit date as bill clears key hurdle – Guardian > Today on BrexitCentral: The 23 MPs who voted for a Second Referendum EU says Brexit transition to end by 31 December 2020… A “transition period” after the UK leaves the EU should not continue beyond 31 December 2020, Brussels says. The UK has said the temporary arrangement should last for about two years after Brexit in March 2019. Terms of the transition period, which the UK calls an implementation phase, have yet to be negotiated between the two sides. The EU says the UK will have to continue to follow its rules and cannot adopt an “a la carte” approach. It has just published its guidelines for the next phase of Brexit negotiations. These talks will initially focus on agreeing the precise terms of the transition phase, before moving on to the UK and EU’s long-term future relationship. – BBC > Watch on BrexitCentral’s Youtube: Barnier wants 31 December 2020 as end of transition …as Barnier backtracks on ‘bespoke’ deal after pressure from EU states… Michel Barnier today backtracked on his tough talk under reported pressure from EU member states and agreed Britain will be offered a “tailor-made” trade deal with the EU. The bloc’s chief negotiator made the conciliatory remarks after he was slapped down by officials representing the EU27 over his insistence that the UK will not get an agreement on financial services… [M]ember states and European Commission chief Jean-Claude Juncker have reportedly become increasingly exasperated with the Frenchman’s off-piste remarks on trade which overstep his current mandate. An EU official said of his remarks: “It is too early to draw conclusions on how the future relationship will look like. This will need to be discussed during the talks.” Speaking at a press conference in Brussels today, Mr Barnier also dodged questions about his role in negotiating the shelved TTIP agreement with the United States which included an ambitious chapter on financial services. – Express …but claims UK must do hundreds of deals in the meantime Britain must complete negotiations with 168 countries by itself to replicate or roll over more than 750 international trade or aviation agreements before a Brexit transition period begins, the European Union’s chief negotiator said yesterday.In comments aimed at Liam Fox, the trade secretary, Michel Barnier questioned whether Dr Fox’s department was capable of carrying out the negotiations in time for Brexit in March 2019. “The UK needs to prepare as of now to be able to replicate these agreements,” he said. “They need to ensure that they have the administrative capacity.” – The Times (£) May ‘confident’ free trade deal can be negotiated with EU before Brexit day Theresa May has said she is “confident” Britain can complete negotiating a free trade deal with the European Union before Brexit day. The UK’s withdrawal is expected by the end of March 2019. During questioning at the Commons Liaison Committee, the prime minister said: “That is what we are working to and that is what I believe we can do.” She added: “The reason I’m confident that we can do this within the time concerned is because we start off from a different point. “So we haven’t got a situation where country A is coming to negotiate with the EU not having had any arrangements with the EU before.” – ITV News > Watch on BrexitCentral’s Youtube Channel: Theresa May discusses Brexit with the liaison committee Theresa May to announce new defence treaty on visit to Poland Brexit will strengthen not weaken the UK’s ties with Poland, Theresa May is to insist on a visit to Warsaw – where she will announce plans for enhanced defence and security co-operation. Poland will still “matter greatly” to the UK after it leaves the EU, she will say, citing shared history and values. A proposed new defence treaty will be a “powerful symbol” of co-operation, the PM will tell her Polish counterpart. The UK will also back an initiative to blunt Russian propaganda in the region. The treaty will be only the second bilateral defence agreement the UK has with a European ally, after France. – BBC Poland and UK to sign joint defense treaty as May visits Warsaw – Politico EU triggers ‘nuclear option’ against Poland as Theresa May walks into diplomatic maelstrom – Telegraph (£) Poland won’t back down – Politico The ‘nuclear option’: What Article 7 could mean for Poland, and how it could engulf May in fresh Brexit row – Peter Foster for the Telegraph (£) Brussels bullying of Poland could lead to the break up of the EU – Express editorial Mark Carney hits back at Barnier suggestions that deal cannot include financial services Mark Carney has rejected suggestions from the EU’s top Brexit negotiator that a special trade deal to include financial services is impossible as Britain ramps up its efforts to safeguard the City’s future. The Bank of England governor told MPs that a bespoke trade deal between the UK and EU could cover financial services, directly contradicting comments made by the EU’s chief Brexit negotiator Michel Barnier. “I don’t accept the argument that just because it has not been done in the past, it can’t be done in the future, we’d just walk away from progress if that was the approach we took to issues,” he told the Treasury Select Committee. “The UK financial system, like it or not, is effectively the banker for Europe in the most complicated bits of finance – there are substantial economies of scale and scope that benefit both sides.” – Telegraph Carney spreads Christmas cheer with Brexit assurances for EU banks – City A.M. UK City regulators turn on Brexit charm offensive – FT (£) Bank of England to let EU banks stay and play in City under EU rules – Independent > Watch on BrexitCentral’s Youtube Channel: Theresa May says London is the Banker for Europe Europe must not ‘punish Britain’ over Brexit, warns new French conservative leader who calls for ‘tailor-made’ deal Europe must not “punish” Britain over Brexit, the new head of the French conservatives has warned, as he urged a “rethink” of the EU with a tailor-made regime for the UK. In his first British interview since clinching the leadership of The Republicans, France’s main opposition party, Laurent Wauquiez took aim at President Emmanuel Macron’s “headlong rush towards federalism” and French “arrogance” in dealing with its neighbours. – Telegraph (£) Mass immigration fuelled 23 per cent rise in rent prices Young people have bore the brunt of mass immigration due to the soaring price of renting over the last decade, a damning report has found. A study by Migration Watch UK found rents across England has risen by 23 per cent over the last decade as supply has failed to keep pace with the rise in demand. This has largely been driven by high levels of immigration, the think tank says. Last night Migration Watch boss Lord Green accused the Government of being “in denial” about the massive impact of immigration on the housing market and demanded immediate measures to reduce demand for housing and increase supply. – The Sun > Aarti Shankar on BrexitCentral: Brexit was not a vote to pull up the drawbridge – but it offers a unique opportunity to address the public’s immigration concerns UK demands secrecy in Brexit trade talks with US The British Government has demanded total secrecy in its free trade talks with the US for a post-Brexit deal, i can reveal. Liam Fox’s Department for International Trade (DIT) has quietly opened preliminary discussions with a team of American officials. Both sides have agreed that their talks will be classified as either “sensitive” or “confidential”, and information will be shared only among approved individuals. Nothing can be released for four years after talks are concluded, unless both sides waive the secrecy rule, according to documents seen by i. – i News COMMENT Iain Martin: Brussels cannot afford to let the City sink Considering how derided Britain’s institutions often are, it was encouraging that the civil service did such a great job earlier this month negotiating a deal with Brussels over phase one of Brexit. Now another pillar of the establishment, the Bank of England, has provided further grounds for optimism as we move to the second phase of talks. It said yesterday that it will allow banks from European Union countries to operate in Britain after Brexit just as they do now. They will not have to change their status or find billions of pounds in extra capital. The upbeat message is that London will remain open for business. – Iain Martin for The Times (£) John Redwood: Record UK manufacturing orders – the economic good news keeps flowing The November CBI survey showed orders for manufacturing in the UK higher than any time since 1988 under Margaret Thatcher. Retail sales continued to rise in real terms despite all the gloomy forecasts. Large sums have been invested in UK property by overseas investors who believe in it more than UK valuers. Yesterday we were told that the UK plans to maintain open access for EU businesses coming to the UK under current rules, whether we leave with or without a deal. It makes sense to stress we do not want to put up new barriers. – John Redwood’s Diary Tim Stanley: The Christmas miracle is that the PM will survive to lead Brexit talks Yes, Mrs May has had a pig of a year – an underwhelming election result, the worst conference speech in memory. But it’s hard to imagine the Tory party dropping its pilot at this stage in the Brexit talks. And the assumption that Mr Green can go and the PM can remain in power, despite how politically and personally close he is to her, is indicative of how her position has changed since the election. It’s a position that isn’t so much strong as miraculously stubborn. – Tim Stanley for the Telegraph (£) Ambrose Evans-Pritchard: Singapore in the Atlantic’ is a splendid model for Brexit If you consider it daunting to wrench a divided nation from its economic moorings and launch into the unknown, remember what Singapore had to face when it was born in trauma at the height of the Cold War. Founding premier Lee Kuan Yew literally broke into tears as he explained to a medley of distraught peoples – Hokkien Chinese, Malay, Tamils, and Eurasians – that all attempts to keep the island-entrepot in the Malaysian federation had collapsed. – Ambrose Evans-Pritchard for the Telegraph (£) Brexit comment in brief How damaging would a ‘no-deal’ Brexit be? – Professor Meredith Crowle et al for CapX Immigration fears are no reason to pull up the drawbridge – Julian Harris for City A.M. ‘Mutineers’ should be given cabinet seats – Christopher Wilkins for The Times (£) To design a post-Brexit immigration system that wins popular support, first find out what people actually want – Stephen Booth for ConservativeHome Brexit-hating Spain can try all it likes but our support for Gibraltar is solid – Trevor Kavanagh for The Sun Brexit news in brief Gove: UK would not compromise with US on food standards – Guardian CBI calls for UK to remain in EU quangos – The Times (£) Zac Goldsmith sent abusive Christmas card from Remainers wishing him a ‘cancerous new year’- Telegraph