Sign up here to receive the daily news briefing in your inbox every morning with exclusive insight from the BrexitCentral team Third round of Brexit talks gets underway with David Davis calling for “flexibility and imagination”… David Davis has called on the EU to demonstrate “flexibility and imagination” as the third round of Brexit talks begins in Brussels. The Brexit Secretary wants to broaden discussions beyond our divorce from the European Union to include future trade relations… Britain has accused Brussels of “massively over-egging” its financial demands, which have been estimated at between £50-£80bn. The EU has also accused the UK of “magical thinking” on its solutions to providing a frictionless border in Ireland. But Mr Davis hopes the series of papers produced by his Department for Exiting the EU over the past fortnight demonstrate that our divorce from the European Union is inextricably linked to our future relationship. – Sky News UK wants ‘mutually beneficial’ Brexit deal, says David Davis – Politico David Davis to demand more ‘flexibility’ from Brussels in Brexit talks – Telegraph Brexit Secretary David Davis will refuse to discuss potential £80billion divorce bill until ‘stubborn’ EU chiefs discuss how they will treat UK — in bid to push talks forward – The Sun The priority for this week’s Brexit negotiations should be talk of a transition – The Times editorial (£) …as row breaks out with Britain lashing out at Michel Barnier for ‘ill-judged and unhelpful’ attack on the UK… The latest round of Brexit talks descended into open hostility as Michel Barnier sniped at Britain for “ambiguity” in its stance on the so-called “divorce bill” and lectured the UK to take the issue “seriously”. Senior sources close to the talks rounded on Mr Barnier, saying he was “stuck with a headache of his own making” over the Brexit bill because of suggestions that Britain should pay to leave the EU and continue to make payments for access to the single market during a transition period. “We are not going to pay twice,” said one source. The source added that Brussels would simply “pocket gains” if Britain made a financial offer, “as their reaction to our offer on citizens’ rights showed. We made a generous offer and got no credit”. Another source described Mr Barnier’s attack as “inconsistent, ill-judged, ill-considered and unhelpful for the next round of negotiations”. – Telegraph (£) Time to get “serious” about Brexit talks, EU tells Britain – The Times (£) David Davis set to go on the attack against ‘stubborn’ Brussels Brexit negotiators in a bid to create split between them and EU – The Sun Britain will refuse to reveal how much we want to pay for EU divorce bill – as negotiators insist Brussels has ‘overegged’ their demands – The Sun UK must pay Brexit bill, says Angela Merkel – Politico EU could be open to Brexit climbdown over trade talks amid revolt led by France – Telegraph (£) No amount of stalling from chief negotiator Michel Barnier will make us cave and hold another referendum – The Sun says …after Barnier article claiming Britain will be vulnerable to terrorists after Brexit fuels anger on the UK side… Mr Barnier also angered his British counterparts by writing an article for a French newspaper in which he claimed Britain would be less secure after Brexit. Writing in Le Monde, he said Brexit “will have very practical consequences including on defence and security” before listing a series of what he saw as negative impacts for the UK… A Whitehall source said: “This is risible nonsense. Mr Barnier knows full well that the UK is the leading military and security power in Europe at a time when the threats to the continent have increased dramatically.” – Telegraph (£) Britain will be vulnerable to terrorists after Brexit, claims lead EU negotiator as he stokes security fears – Telegraph Anti-slavery commissioner says Brexit should have no impact ‘whatsoever’ on links with Europol – Telegraph (£) It’s the height of irony for Michel Barnier to lecture Britain about terrorism – Telegraph editorial …while EU sparks further row with Northern Ireland “bargaining chip” accusations The EU warned British negotiators arriving in Brussels next week for the third round of Brexit talks that they should not use the Northern Ireland peace process as a “bargaining chip” to try to speed up Brexit talks… In Britain, a spokesman for the Department for Exiting the European Union said the U.K. position paper on Northern Ireland “puts protecting the Good Friday Agreement at the heart of our approach. That includes a proposal that the U.K. and EU should agree upfront on the crucial importance of avoiding a hard border for the peace process in Northern Ireland” … A DExEU official added: “This type of language suggests they don’t properly understand the sensitivities or appreciate the human costs behind the hard-won progress in Northern Ireland. This is not some sort of game with bargaining chips.” – Politico UK accused of ‘magical thinking’ over Brexit plan for Irish border – Guardian EU set to break its own sequencing rules as it targets early agreement on food quotas with the UK… Although trade issues are meant to fall into phase two of the negotiations, the problem of reduced-tariff import quotas raises such a strategic headache for Brussels that EU negotiators have been willing to bend the rules and aim for an early agreement. Diplomats say that the matter has been agreed at a technical level and should be formally wrapped up during next week’s Brexit negotiations. – Politico UK set to win on first agreement with EU despite bloc’s stalling tactics – Express …as UK and German businesses back Davis’ call for a Brexit that works for Britain and EU British and German business groups have united to back David Davis’ demands for Brexit negotiations to focus on an economic deal that works in the best interests of both the UK and the EU… [Davis’] comments were echoed by the British Chambers of Commerce and the Association of German Chambers of Commerce in a joint plea for a deal that focuses on our “shared economic interests”. They warned that German business was being harmed by the lack of clarity over Britain’s post-Brexit relationship with the EU. – The Sun British and German firms unite to call for business-friendly Brexit talks – Guardian Labour makes dramatic Brexit shift and backs single market membership… In a move that positions it decisively as the party of “soft Brexit”, Labour will support full participation in the single market and customs union during a lengthy “transitional period” that it believes could last between two and four years after the day of departure… This will mean that under a Labour government the UK would continue to abide by the EU’s free movement rules, accept the jurisdiction of the European court of justice on trade and economic issues, and pay into the EU budget for a period of years after Brexit, in the hope of lessening the shock of leaving to the UK economy. In a further move that will delight many pro-EU Labour backers, Jeremy Corbyn’s party will also leave open the option of the UK remaining a member of the customs union and single market for good, beyond the end of the transitional period. – Observer No ‘constructive ambiguity’. Labour will avoid Brexit cliff edge for UK economy – Keir Starmer for the Observer Labour wants UK to stay in EU single market during transition period – Sky News Jeremy Corbyn to ‘use parliamentary guerrilla tactics’ to force May into soft-Brexit – Express SNP will vote for “common sense” on Brexit – Ian Blackford MP for The Times (£) Labour’s new Brexit policy could be used to stop Britain leaving the EU altogether, slew of senior party figures claim – The Sun Labour Remainers call for permanent transition to reverse Brexit – Guido Fawkes Jeremy Corbyn is plotting to ‘wreck’ Brexit with continued membership of Single Market, Frank Field warns – Telegraph (£) Labour exposes the false promises of Britain’s exit – Lord Mandelson for the FT (£) How Keir Starmer’s new policy could cause Theresa May’s Brexit to unravel – John Rentoul for the Independent Labour policy shift on single market and customs union a win for soft Brexiteers – Tamara Cohen for Sky News How Labour’s soft Brexit shift could change government’s course – James Randerson for Politico Why Labour’s new Brexit stance could change everything – Stephen Bush for the New Statesman …as Labour MPs warn of backlash among Brexit voters if Jeremy Corbyn shifts Brexit stance Jeremy Corbyn and Keir Starmer, the shadow Brexit secretary, are facing a backlash from senior MPs in Labour’s traditional heartlands after announcing a dramatic shift in party policy to back continued membership of the EU single market beyond March 2019… Three senior Labour MPs from northern England and Midland constituencies have told the Guardian that the move risks alienating thousands of voters in traditional seats who support greater controls on immigration… Another traditionalist MP said the policy would be “very damaging in hundreds of Brexit-voting seats” that Labour needs to hold outside major cities. “There aren’t enough metropolitan remain-type voters to win an election. There is real concern that we have misled voters.” – Guardian Labour ready for ‘political hit’ after backing remaining in the single market after Brexit – Independent Labour accused of deliberately trying to sabotage Brexit talks by changing policy on eve of crunch meetings – The Sun Jeremy Corbyn’s ‘soft Brexit’ U-turn will cause Leave voters to abandon Labour and return to Ukip, warns Kate Hoey – Telegraph (£) Labour accused of ‘betraying’ voters with new Brexit policy – The i Keir Starmer absolutely, clearly, and unambiguously declares war on Brexit ambiguity. Sort of. – Mark Wallace for ConservativeHome On Brexit, Labour and the Tories are closer than either would like to admit – Fraser Nelson for the Spectator Labour’s new Brexit policy offers no certainty or clarity – just more muddle – Tom Harris for the Telegraph (£) Five things you need to know about Labour’s new Brexit policy – Daniel Hannan for IBTimes At last the Labour Party has a stance on Brexit — and they cannot be allowed to sabotage our exit from the EU – The Sun says Labour pushes Brexit politics towards realism – FT editorial (£) Labour’s Brexit ambiguities are undermining Britain’s cause – Telegraph editorial (£) Boris Johnson says UK needs to leave Customs Union with ‘speed and efficiency’ after Brexit The UK has committed to retaining membership of a temporary customs union after Brexit to reduce barriers to trade. However the Government has refused to say how long it will last. Mr Johnson told BBC Radio 4’s Today programme that businesses want the UK to leave the Customs Union with “speed and efficiency”. He said: “There’s the customs union transition period, where there’s a discussion about how long that will go – one, two, three years, how you would run that. My view is that we should get on. What business would want us to achieve is speed and efficiency.” – Telegraph Boris Johnson: UK will pay Brexit bill ‘as we see it’ – Sky News Boris Johnson says UK will “meet our obligations” but “will not pay a penny more” than legally necessary – Express UK seeks ‘adequacy’ deal with EU on data flow after Brexit Britain wants an early agreement with the EU over data protection to ensure the free flow of crucial information after Brexit… Under adequacy agreements, the European Commission recognises levels of protection provided by non-EU countries. The Government said Britain had been a major player in setting EU data protection rules, called GDPR, which come into force next year… “In light of the UK’s unprecedented position, the future deep and special partnership between the UK and the EU could productively build on the existing adequacy model,” [it said]. – Sky News UK seeks early deal with EU on post-Brexit data sharing – Guardian Data protection must not become a weapon during Brexit negotiations – Brian Lord, former GCHQ Deputy Director, for the Telegraph (£) Leading German economist says EU is stifled with protectionism and red tape and its attempts to punish UK will fail Professor Thorsten Polleit predicted that the UK will go from strength to strength after Brexit whilst the rest of the continent will continue to be stifled by EU protectionism and red tape – something that is a “big worry for Brussels”. In an interview with express.co.uk the respected economist compared EU membership to “serfdom” and anticipated a concerted effort by eurocrats to “punish” Britain for leaving, including an attempt to cut off favourable trade access in order to hold the bloc together. But he warned that such a “lose-lose” approach, which would harm European economies as much as the UK, was doomed to failure because quitting the EU and reaching out into the world will be “very beneficial for Britain” in the long run. – Express City says transitional services deal needed by Christmas to avoid harm Senior business figures are warning the government to secure a bespoke transitional Brexit deal for financial services by Christmas – or risk doing unnecessary damage to the Square Mile… City sources say that firms want a paper setting out the government’s intention for a transitional arrangement in financial services as soon as possible, so that a binding agreement with the EU can be completed this year. – City A.M. Nissan to increase production at Sunderland plant by a fifth Nissan will increase production at its Sunderland plant by a fifth and double the amount of parts it sources from within the UK in an attempt to offset higher costs following Britain’s withdrawal from the EU. The Japanese car giant will step up production by 20pc to around 600,000 vehicles per year, the Nikkei Asian Review reported… Nissan’s investment follows Toyota’s injection of £240m into its only British factory earlier this year. – Telegraph Japan to seek Brexit reassurances from Theresa May – Guardian Japan to tell Theresa May to end ‘sense of crisis’ around Brexit during Prime Minister’s trade trip – Telegraph Emmanuel Macron spends €26,000 on makeup in his first three months as French president Emmanuel Macron spent €26,000 (£24,000) on makeup during his first three months as president of France, it has emerged. In potentially damaging news for the 39-year old centrist leader, whose popularity is waning, Le Point reported that his personal makeup artist – referred to only as Natacha M – put in two bills, one for €10,000 and another for €16,000. The Elysee Palace defended the high fee saying: “We called in a contracter as a matter of urgency”. – Telegraph Macron to flesh out EU vision amid sliding popularity – EurActiv Is it possible that Macron might just triumph? – Jonathan Miller for the Spectator Devastated that Macron wears make-up? There’s such a thing as too much authenticity – Tom Harris for the Telegraph (£) EU denies “conspiracy” over Tony Blair meeting Juncker in Brussels while Brexit talks are going on The European Commission revealed Mr Blair will be heading to the Belgian capital on Thursday for a meeting with Mr Juncker, when the pair will discuss “current issues of current European economics and politics”. It comes as David Davis and his Brexit team will be in Brussels for the next round of Brexit talks. But the Commission refuted suggestions the EU chief was snubbing Theresa May’s Brexit negotiators. European Commission spokesman Alexander Winterstein said: “There is no conspiracy theory there.” – Express ‘Remaniac-in-chief’ Blair to visit Juncker during Brexit talks – Telegraph Tony Blair to meet Jean-Claude Juncker during Brexit talks week – Politico William Hague: The EU is having fun giving us the runaround – but sooner or later it will have to get flexible For now, this circular way of negotiating suits the EU side. It gives Britain the runaround and increases the pressure on the Government. It allows them to be as obstructive as they wish without seeming to be. And in the meantime, it means they can avoid difficult issues that might divide them or push them to change any policy. The moment is rapidly approaching, however, when leading EU governments will have to make some serious interventions in the talks if they are going to act in their own best interests. – William Hague for the Telegraph (£) Christian May: As talks resume it’s time for the EU to show some Brexit flexibility Davis has called on the EU to demonstrate “flexibility and imagination” – characteristics that the institutions of Europe have demonstrated on plenty of occasions when dealing with their own problems, but which are undoubtedly lacking in their approach to Brexit. As the (Remain supporting) lawyer David Allen Green has pointed out, the EU is being “maddeningly bureaucratic” in its approach to negotiations… As the UK and German chambers of commerce declared in a joint statement yesterday, “the UK and the EU must begin to work on transitional arrangements, particularly on customs, so that firms on both sides of the Channel have the confidence to make investment decisions”. In other words: sod your process, we need some decisions. – Christian May for City A.M. Peter Foster: Why both sides need to show more imagination in the Brexit talks The EU has created a straitjacket for the talks which makes progress very difficult given the politics on both sides. David Davis has called for “flexibility” while the EU accuses London of “magical thinking” on Brexit – which is to say, the UK is still trying to have its cake and eat it by leaving the EU while retaining many of the benefits of membership. The talks have therefore become become a chicken-and-egg scenario. Both sides want the other to move first, but David Davis cannot offer the EU money without trade any more than Michel Barnier can grant trade talks without a commitment on the money. – Peter Foster for the Telegraph (£) Sunder Katwala: Debunking the ‘Brexodus’ myth It is a funny sort of Brexodus which leaves the number of European nationals in Britain at an all-time high… The net A8 inflow of just 7,000 in the year to March 2017 shows that east European migration to and from the UK is almost in balance…Yet the ONS found, perhaps rather counterintuitively, no statistically significant shift in the migration flows of EU15 migrants in the first year after the referendum. There was an inflow of 74,000 west European migrants to the UK over the past year. The sharp contrast between the A8 and EU15 trends may illuminate what has happened. It would suggest that the sharp depreciation of sterling after the referendum has been the most important driver of migration changes. That will have been an especially important factor to those coming to work for a year or two with the primary intention of saving money to take home. – Sunder Katwala for the Spectator 80% rise in number of EU citizens seeking UK passports – Sky News Britain has a shortage of workers, but that may be a good problem to have – Fraser Nelson for the Telegraph (£) Fighting the hard facts of immigration breeds misguided, problematic policy – Kate Andrews for City A.M. Leo McKinstry: Britain can be a great trading nation outside the Customs Union — the sooner we leave, the better Far from helping our economy, membership of the Union actually holds back prosperity, not only by imposing tariffs on many of the goods we import, but also by preventing us from reaching trade agreements across the world… The lesson of history is that protectionism is almost always negative in its long-term impact. It causes imbalances, inhibits innovation, and discourages openness. That is a key reason why the EU has consistently had the slowest growth of any region in the developed world. – Leo McKinstry for the Telegraph (£) It’s not our problem how Europe fares after we leave the Customs Union – John Whittaker for Reaction Let’s stop the posturing and get serious about Brexit trade deals – Ian Livingston for the Telegraph (£) Wolfgang Münchau: Once Britain leaves, the assessment of the pros and cons of EU membership will change Over the next few years I expect the EU to make another attempt to shift power from the national level to the centre in a number of areas, notably the governance of the eurozone, driven by the EU integration agenda of Emmanuel Macron, the French president, rather than by Brexit… The changes may bring France and Germany closer together politically, but they may drive Italy further away. As for the non-eurozone countries, I would not be surprised if they were starting to question the value of a union that is likely to bring fewer material financial benefits in the future and that is run primarily in the interest of the eurozone. The EU is not bound to break up, but it would be foolish to assert that Brexit implies the opposite. – Wolfgang Münchau for the FT (£) Ben Rochelle: The Government must act to maintain our fishing fleets There is, at present, a major shortage of fishermen in the UK fishing fleet. During a recent debate in Parliament, MPs representing the coastlands of Scotland talked about an industry crippled because boats cannot get the crew they need to go to sea… Between 2010 and 2012 the Government introduced short-term visas for a select number of non-EEA fishermen. This worked well, satisfying a fundamental labour and skills shortage in the sector which was evident at the time and is very evident now… The Government would do well to re-implement this visa system during the Brexit negotiations, allowing controlled and fair migration into the fishing industry. – Ben Rochelle for ConservativeHome Roger Bootle: Why consumers, not producers, are the key to post-Brexit trade Since we send 80pc of our tariff revenues to the EU, the bulk of the gain to consumers from lower tariffs would not be offset by losses to other parts of the UK economy. Moreover, because the UK would only be reducing barriers on the half of our imports that come from outside the EU, a good deal of the competitive pressure induced by lower prices to UK consumers would fall not on British producers, but rather on European exporters to the UK. – Roger Bootle for the Telegraph (£) Brexit comment in brief It’s about time PM Theresa May knocked a few EU heads together to get Brexit rolling again – The Sun says It’s time to deploy tough tactics in talks with Brussels – Chris Roycroft-Davis for the Express Yes, Michel Barnier is stubborn. But David Davis can be the better man – Asa Bennett for the Telegraph (£) David Davis, the UK’s Brexit attack dog – Annabelle Dickson for Politico Government must be clearer on what it wants from Brexit to crack the EU’s fragile unity – Dia Chakravarty for the Telegraph (£) Theresa May’s Plan A: avoid Supermac’s Euroflop – Dominic Lawson for the Sunday Times (£) ‘No deal’ might soon be a real possibility – Carole Walker for The Times (£) The EU isn’t getting weaker – in fact, it’s planning to have its own army – Andrew Hammond for the Independent Judges are losing democratic legitimacy – at home as well as in Europe – Jeremy Warner for the Telegraph (£) Brussels has overplayed its hand on EU law after Brexit – Christopher Forsyth for CapX Britain lays out a menu of fudge for its ECJ red line – FT editorial (£) UK shows pragmatism, high ambition in plan for post-Brexit cross-border disputes – Matthew Holehouse for MLex The government’s ECJ position paper is a pragmatic start, but business needs more safeguards – Allie Renison for City A.M. Remain diehards must learn to lighten up – Iain Martin for The Times (£) Britain urgently needs a new economic plan to show that it’s ready for Brexit – Allister Heath for the Telegraph (£) Power to the people and to the vacuum cleaners – Express editorial Brexit news in brief MPs call on Philip Hammond to give Brits their duty free back for trips to Europe after Brexit – The Sun UK-US trade could be derailed by 19 lost deals after Brexit, says Open Britain – Guardian Guardian Brexit coverage bewildering Remainers – Guido Fawkes Brexit campaigners ‘use ECJ backlash to rally support for Rees-Mogg’ – Guardian Tory Brexiteer group welcomes plan to end ECJ jurisdiction – Guido Fawkes Big business and banks drowning out “voices of ordinary people” in formation of Brexit, warns report – Independent Gina Miller to write ‘rallying cry’ memoir, “Rise” – Guardian Romanian government says it will adopt the euro in 2022 – Independent