Sign up here to receive the daily news briefing in your inbox every morning with exclusive insight from the BrexitCentral team Theresa May plans to lobby EU27 leaders directly so Michel Barnier can’t ‘whip them into line’… Theresa May is planning to go direct to key EU27 member states in a bid to get them onside with the UK’s position on the future relationship, City A.M. understands. While the Brexit white paper had been expected before this week’s European Council meeting, one source said the delay was now being viewed as a positive as it will allow the British side to circumvent the EU’s chief negotiator Michel Barnier. This would give the government an opportunity to “tackle the member states separately… before Barnier can whip them into line”. – City A.M. …as the EU reportedly prepares to offer the UK a better deal if May abandons her red lines… Brussels will this week entice Theresa May into softening her stand on Brexit by publicly pledging her a better deal if she does. It has emerged that EU ministers have tweaked their draft conclusions for this week’s summit to call on the PM to present a “realistic and workable” vision for future relations. And they have also inserted an ‘evolution clause’ which promises the bloc will “reconsider its offer” on trade in return for the UK abandoning its red lines. The move comes ahead of a crunch Cabinet get together at Chequers, which EU diplomats will be watching closely for any sign of a shift in tone. – The Sun …while the PM admits to Donald Tusk that her Brexit demands will not be ready before Thursday’s EU summit… Theresa May admitted to Donald Tusk tonight Britain’s Brexit demands would not be ready until after this week’s crucial EU summit. The Prime Minister told the EU Council President at Downing Street talks she would not have her crucial policy paper on the shape of Brexit in time to discuss it with other European leaders. The state of the document, known as a White Paper, has been the subject of fraught discussions inside Westminster and is not likely to be fixed until a Cabinet away day next month. Brussels had wanted to see ‘progress’ on resolving the Irish border at this week’s summit but hopes are rapidly fading of any movement at all. – Daily Mail …and ministers are told to bring overnight bags to next week’s Chequers Brexit summit Theresa May is to have a cabinet sleepover at her Chequers country retreat at the end of next week to finalise the Brexit white paper in a showdown dubbed “the body bag summit” by some MPs. Sources told Sky News the meeting had been pencilled in for 5 and 6 July, with cabinet ministers told to bring their overnight bags as the prime minister locks in her top team to thrash out an agreement. “It’s a pyjama party,” joked one source. The much-awaited white paper, setting out detailed plans on the UK’s post-Brexit future, will be published on 9 July. After months of prevaricating, the prime minister will have to finally set out what sort of post-Brexit customs rules she wants in a showdown meeting. – Sky News Hungary warns that the EU faces ‘economic devastation’ if it fails to secure achieve a post-Brexit UK trade deal Hungary last night broke ranks to warn that the EU faces economic devastation if it fails to achieve a post-Brexit trade deal with Britain. Its foreign minister Peter Szijjarto demanded Brussels stop trying to punish the British people for voting to leave. In a stinging rebuke days before the European Council summit, Mr Szijjarto said the EU had put its citizens’ security at risk by threatening to kick Britain out of projects such as the European Arrest Warrant and DNA database for criminals.He told the Daily Mail that EU negotiators should understand the economic damage they will cause if they fail to sign a comprehensive UK trade deal. – Daily Mail Commission to EU27: Prepare airports for a ‘no-deal’ Brexit EU countries should prepare their airports and aviation sector for a “no-deal” Brexit, the European Commission told diplomats at a briefing earlier this month. The warning came during a June 12 meeting chaired and attended by EU27 diplomats and representatives of their civil aviation authorities, according to three officials present. He advised countries to be ready for the possibility of the U.K. crashing out of the EU without a deal on March 29 next year, saying that they should consider their customs handling capacity and prepare for impacts on security, market access, safety regulations and passenger rights. – Politico City hits back at European Banking Authority over Brexit warning… Senior figures from the City of London today hit back at the European Banking Authority (EBA) after the regulator warned that lenders are not prepared for Brexit.The EBA today said that financial firms in the UK who provide services to clients in the rest of the EU were not adequately prepared for withdrawal, and that cost-conscious firms are risking financial stability.London-based firms are “delaying triggering the necessary actions” on Brexit contingency plans, it said in a statement. – City A.M. …after EU watchdog tells banks to speed up Brexit preparations Banks have failed to make enough progress on their Brexit preparations and should not expect “miracle” public intervention to help them, the European Union’s banking watchdog said on Monday. While Britain and the EU have agreed in principle on a transition deal lasting from Brexit next March to the end of 2020, it is part of a broader divorce settlement that has yet to be formally adopted. Banks’ preparations for the potential departure of Britain from the EU without a ratified withdrawal agreement are inadequate, the European Banking Authority (EBA) said in a statement on Brexit. – Telegraph (£) Nine EU states to launch joint military force as Paris pushes for post-Brexit crisis defence group Britain is to team up with France, Germany and other willing nations to launch a military crisis force operating outside the framework of the European Union after Brexit. In all nine nations, including Belgium, Denmark, the Netherlands, Estonia, Spain and Portugal, are due to sign a letter of intent in Luxembourg on Monday to take part in the so-called European Intervention Initiative (EII) – a coalition of willing states prepared to react to crises near Europe’s borders without help from NATO or the United States. Speaking to Le Figaro newspaper on Sunday, Florence Parly, France’s defence minister, said: “European defence needs a common strategic culture. – Telegraph (£) UK may join eight countries in military unit outside EU – The Times (£) London still most popular city for overseas workers beating New York, Berlin and Barcelona London is still the most popular city for overseas workers to come to beating New York, Berlin and Barcelona in new research. A report by the Boston Consulting Group and the website totaljobs also revealed that overall the UK has fallen from second to fifth in list of most desirable country to work in. They say this is partly down to the ongoing uncertainty about the future immigration policy for staff after we leave the EU… But the capital has retained top spot, as the leading global financial and tourism hotspot has not been adversely affected by Brexit. – The Sun England fans warned that pro-Brexit chants could be punished by Fifa England fans have been warned any pro-Brexit chants during their World Cup game against Belgium risked punishment by Fifa. The game’s governing body said the Football Association would be sanctioned if Three Lions supporters breached its rules on “displaying insulting or political slogans in any form” and “uttering insulting words or sounds” during Thursday’s match in Kaliningrad. A Fifa spokesman told Telegraph Sport: “Of course, there is a risk of some kind of punishment to the FA. – Telegraph (£) Theresa May jokes about England World Cup victory with EU Council boss – The Sun Greg Clark offers business olive branch after Cabinet colleagues’ outbursts Business secretary Greg Clark offered a semi-apology to industry today, after Cabinet colleagues put the cat among the pigeons this weekend. Health secretary Jeremy Hunt provoked criticism after he branded Airbus’ intervention last week – in which the manufacturer warned it would exit the UK in the even of a no deal – a “threat”.Hunt told the Marr Show yesterday it was “completely inappropriate” for Airbus to warn that 14,000 jobs were at risk because of the Brexit process, saying the country was at a “critical moment” in the negotiations. – City A.M. Minister rebukes Brexiteer colleagues over Airbus attacks – Sky News PM spokesman – It’s up to companies if they want to air their views over Brexit – Reuters Trade wars and the car industry – John Redwood MP for CommentCentral Six Brexit predictions that failed to come true Days after the EU referendum, investment company JP Morgan announced in an email to clients that they expected Scotland to leave the union and change currency. Goldman Sachs declared the British economy would go into recession by early 2017 and the government predicted the UK would slide into recession, unemployment would go up by half a million and wages would go down by 4pc. Meanwhile, UK unemployment has gone down continuously since the vote to leave, the UK is still growing and wages are on the rise. – Steerpike for The Spectator Peter Foster: The EU migration crisis has blown away figleaf of European unity amid sweeping arc of illiberalism The European Union has always made progress through the medium of messy compromises, but the 2015 migration crisis is now in danger of testing that formula to destruction.Last weekend’s mini-summit of the 16 nations looking for an EU-wide agreement to the problem predictably ended without anything of the kind – indeed, from the very outset the aim was finding a way to ‘agree to disagree’.This moment of painful realism has been nearly three years in gestation, and it comes after a litany of failed attempts to forge common EU positions on migration. – Peter Foster for the Telegraph (£) Diane James: The EU’s federalist project is starting to rip apart at the seams There are many people who believed that once the UK voted to leave the EU, other nations would follow.Those hopes were dashed in early 2017, however, when in both France and the Netherlands electorates rejected eurosceptic candidates in favour of pro-EU governments. It seemed as though the UK was left out on a limb.The EU took the perceived weakness of euroscepticism as an advantage, and with Britain no longer at the table as a mediating voice, began to roll out more proposals to deepen and widen integration, including the oft-denied European Army. – Diane James MEP for City A.M. Katy Balls: What is Jeremy Hunt up to? ‘What you can see is someone who has the instincts of a Brexiteer, but the cautious pragmatism of a Remainer, which is where I think the British people are.’ This is how Jeremy Hunt tried to sell Theresa May’s leadership on the Andrew Marr sofa this Sunday. After a choppy few weeks for No 10, the Health Secretary made clear that he felt May was still the right person for the job of Prime Minister.Perhaps it’s just pure coincidence then that one could also substitute Hunt’s name with May’s in that endorsement. Like May, Hunt is a Remainer turned Brexiteer.- Katy Balls for The Spectator Brendan O’Neill: Theresa May must put the great back in Brexit — as we’ve lost control of the narrative despite winning the vote Brexiteers have a problem: We won the vote but lost control of the narrative. We stormed to victory in the referendum two years ago but we have been defeated in the world of political opinion. We have allowed Brexitphobic catastrophists to dominate the discussion about Britain’s exit from the EU. These non-stop naysayers may have lost on June 23, 2016, but they are writing the story of Brexit. They have cast their gloom everywhere. It spills out from the front pages of broadsheet newspapers. It peppers the statements of Brussels stiffs. Brexit will be a “catastrophe”, says the European Commission’s bully-boy bureaucrat, Jean-Claude Juncker. – Brendan O’Neill for The Sun Jonathan Portes: We are running out of time to offer voters a new deal on immigration Two years on from the EU referendum, we still don’t really know how our borders will work after Brexit… While the vote to Leave may have been driven by the migration issue, that in itself did not tell us what would happen to immigration policy after Brexit. Indeed, during the campaign, Vote Leave argued both sides of the issue, warning with one hand about Turkey joining the EU and telling ethnic minority communities with the other that Brexit would allow a more liberal approach. – Jonathan Portes for the Telegraph (£) Immigration is tearing at the foundations of the EU’s old established order – Mark Wallace for ConservativeHome Brexit in Brief #PeoplesVoteMarch shows Remainers have lost the plot – Alastair Benn for Reaction Never-ending enlargement is not the answer to the EU’s problems. – Dalibor Rohac for CapX There’s still time for the UK to shape the Brexit negotiations – if the Government gets its act together – Henry Newman for ConservativeHome The Taoiseach risks toppling the dithering UK government – The Times in Ireland editorial (£) Boris Johnson should have resigned over Heathrow and Brexit – Iain Martin for Reaction BBC’s backing for the Brexit blockers’ beano – Gary Oliver for ConservativeWoman How Cornish pasties and Scotch whisky could end up sinking post-Brexit trade deal with US – The Sun Farmers urge Theresa May to launch global permit for fruit pickers post-Brexit – Telegraph (£) Jobs at risk if Brexit deal ignores service industries Sadiq Khan warns – Evening Standard Carmakers warn of the real cost of Brexit – FT (£) Harley-Davidson plans to move production out of US to avoid EU tariffs – City A.M. BMW warns Brexit could force UK plant closures – City A.M.