Eurosceptic Tory MPs set out Brexit 'red lines': Brexit News for Wednesday 21 February

Eurosceptic Tory MPs set out Brexit 'red lines': Brexit News for Wednesday 21 February
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Eurosceptic Tory MPs set out their Brexit ‘red lines’ in letter to Theresa May ahead of crunch Cabinet summit

Eurosceptic MPs have set out their “red lines” for Brexit in a letter to Theresa May that makes clear what she must do to retain their loyalty. The European Research Group of 62 Conservative Brexiteers, led by Jacob Rees-Mogg, insists that the UK must retain “full regulatory autonomy” after it leaves the EU and must be free to sign trade agreements with other countries during the transition period… The signatories say Britain “must have the ability to change British laws and rules once we leave, rather than being a ‘rule taker’ without any substantive say in whatever Brussels decides”. They also say that “the UK must be free to start its own trade negotiations immediately” and that “any implementation period must not restrain the UK from negotiating or signing other trade agreements”. The other three demands relate to taking control of trade tariffs, publishing a global trade mandate and being able to negotiate with the EU as an equal partner. – Telegraph (£)

Economists debunk Whitehall Brexit analysis – and say the economy will grow

A group of pro-Brexit economists claim to have “comprehensively debunked” Whitehall analysis suggesting the UK is heading for a period of depressed growth after leaving the EU, arguing the government’s stated policy will actually lead to growth. The Economists for Free Trade believe Brexit on the basis of Theresa May’s Lancaster House speech will boost the UK’s economy by two-to-four per cent. The group has sent its findings to Theresa May, foreign secretary Boris Johnson, environment secretary Michael Gove, Brexit secretary David Davis, international trade secretary Liam Fox, defence secretary Gavin Williamson, ahead of Thursday’s Brexit war Cabinet at Chequers. – City A.M.

> Professor Kevin Dowd on BrexitCentral today: The Treasury’s record of economic forecasting is so poor, it should have given up trying years ago

UK will have to have a customs union with the EU post-Brexit, claims Jeremy Corbyn

The UK will “have to have a customs union” with the EU after leaving the bloc, Jeremy Corbyn has said in remarks suggesting a further shift by Labour towards a softer Brexit. Answering questions after a speech to manufacturers’ organisation the EEF, the Labour leader said some form of continued customs union would be imperative, in part to avoid a hard border on the island of Ireland. Asked how Labour’s position on Brexit differed to that of the government, Corbyn said: “We have to have access to European markets, we have to have a customs union that makes sure we can continue that trade, particularly between Northern Ireland and the Republic of Ireland. That is key to it.” – Guardian

EU could demand freedom of movement after Brexit in return for going easy on bankers…

European Union governments could demand the continued free movement of their workers to Britain after Brexit in return for offering financial services firms in the UK access to the single market, The Telegraph has learnt. EU diplomats revealed the idea was floating informally around the corridors of power in Brussels, ahead of the expected talks over the future UK-EU relationship and free trade agreement. If the plan gains more traction, it will put some of the leaders of the EU-27 in conflict with the European Commission, which is leading the Brexit negotiations on their behalf. – Telegraph (£)

  • Britain could withhold agreed divorce bill payment from EU if it doesn’t get a trade deal – Independent

…while European Parliament is to call for Britain to have ‘privileged’ single market access

The European Parliament is putting together a 60-paragraph document outlining its desire for an “association agreement” with post-Brexit Britain, in a break from the position of the chief EU negotiator Michel Barnier. The European Parliament is pushing for a future relationship with the United Kingdom which could allow for Britain to retain “privileged” access to the single market. This marks a divergence from the position taken by the EU’s negotiating team, which has instead suggested that Theresa May’s negotiating red lines mean Britain may only have access to a Canada-style free trade deal. One source familiar with the European Parliament’s activities told Business Insider it wants to “steal a march” on the other EU institutions by adopting the resolution prior to the EU27 signing off its negotiating guidelines for talks on the future relationship. – Business Insider

Ministers ‘close to deal’ over Brexit powers with Scotland and Wales

The UK government believes it is on the brink of a deal to ends months of deadlock with the Scottish and Welsh governments over an alleged “power grab” after Brexit. Ministers will offer to drop their controversial plans for Whitehall to take control over as many as 111 EU powers that Scottish and Welsh lawmakers insist should be handed over to them. The three governments meet in London on Thursday for a further talks over the repatriation of significant EU powers in areas such as farming, fisheries, justice, environmental protection and food safety, which are currently overseen by the UK’s devolved parliaments. – Guardian

Ministers sent on Brexit charm offensive…

Senior ministers have begun briefing European capitals on the outlines of the cabinet’s Brexit compromise. In a burst of diplomatic activity, Philip Hammond, the chancellor, and David Davis, the Brexit secretary, have been dispatched on a charm offensive before Theresa May’s keynote speech on Brexit next week. The cabinet will meet at Chequers tomorrow to finalise Britain’s proposals but The Times understands that key elements of the plan are already being privately briefed to EU member states. – The Times (£)

  • Cabinet will agree Brexit policy — but EU warned over tariff barriers – The Times (£)
  • Cabinet still deadlocked over EU rules day before crunch Brexit talks – The Sun
  • Liam Fox to EU leaders: Europe will be less competitive with Britain trade barrier – Express
  • Contrasting fortunes of the Four Brexiteers – Charlie Cooper for Politico

> Watch on BrexitCentral’s Youtube Channel: David Davis’s “Road to Brexit” speech in Vienna

…as Michael Gove wants farmers to be allowed to hire cheap EU workers after Brexit

Michael Gove has demanded farmers still have access to cheap European labour after Brexit – risking a fresh spat with Theresa May, who has pledged a clampdown. Heaping pressure on the PM ahead of a crunch Cabinet session on exit plans, the Environment Secretary added that more workers will also have to come from the wider world to keep Britain’s agricultural sector afloat. In a speech to the National Farmers’ Union, the top Brexiteer- who campaigned to bring in immigration controls – said he had explained to Whitehall migration boss “that we will need continued access to skilled labour if we’re to keep our farming sector productive and profitable.” – The Sun

> Watch on BrexitCentral’s Youtube Channel: Gove says Brexit sets us free to put British farming first

Boris Johnson allegedly said Brexit was ‘a mess’ during private meeting

Boris Johnson described Brexit as “a mess” during a private meeting with senior German officials, European Union sources have claimed.  Mr Johnson is understood to have been referring to the complex Brexit negotiations rather than the British decision to leave the bloc, which he campaigned for in the referendum. During unminuted talks in Berlin, the foreign secretary is alleged by Brussels sources to have urged the Germans to turn Brexit into an economic opportunity.  However, The Telegraph understands he was rebuffed by the German government, which has repeatedly stood behind Michel Barnier and resisted any attempts to go over the European Union chief Brexit negotiator’s head. – Telegraph (£)

Irish Foreign Minister Simon Coveney clashes with Brexiteers over Good Friday Agreement

Simon Coveney warned they could undermine the foundations of Northern Ireland’s “fragile” peace process. It followed suggestions by number of high-profile Brexiteers that the 1998 deal may no longer be fit for purpose… Ms Hoey argued that her scepticism of the 1998 accord had “nothing at all to do with Brexit”. She tweeted: “Hiding head in sand over viability of sustainability of mandatory coalition is reckless and wrong.” …Mr Paterson robustly defended his position, saying: “Brexit is emphatically not a threat to peace in Northern Ireland.” He added that it was “disgraceful that hysterical Remainers and Brussels are weaponising the Irish border issue”. Mr Paterson also pointed to a recent interview with former Ulster Unionist Party leader, Lord Trimble, one of the architects of the 1998 peace deal. Lord Trimble told BrexitCentral that it was “rubbish that Brexit will undermine the Good Friday Agreement”. – BBC News

  • Brexiteers ‘irresponsible’ for calls to reappraise Good Friday Agreement to ease Brexit, Irish deputy PM says – Telegraph (£)
  • David Davis backs Good Friday agreement as Brexiteers batter it – The Sun
  • The UK and Ireland can resolve their Brexit difficulties, but the EU is muddying the issue – Telegraph editorial (£)

> Yesterday on BrexitCentral: Trimble: “Rubbish” that Brexit will undermine Good Friday Agreement

> Austen Morgan today on BrexitCentral: Questions over the Irish border are eminently soluble, if only the EU would allow the work to begin

Deutsche Bank receives planning permission for new London Headquarters

Land Securities, the developer for Deutsche Bank’s new UK headquarters, said on Tuesday it had secured a revised planning permission for the proposed development in the heart of London’s City financial district. Deutsche Bank chose the new office for its London headquarters in March last year, signaling a vote of confidence in London’s future as a global financial hub despite Britain’s decision to leave the European Union… Since then Germany’s biggest bank has also said it expected to relocate fewer UK-based staff than some senior officials had estimated following Britain’s departure from the EU… “Deutsche Bank’s move demonstrates a high level of confidence in the City of London as a leader in financial and professional services,” Chris Hayward, Planning and Transportation Committee Chairman at the City of London Corporation said. – Reuters

Asa Bennett: David Davis might not want a Mad Max Brexit…but he may well end up on Fury Road

European Union governments could demand the continued free movement of their workers to Britain after Brexit in return for offering financial services firms in the UK access to the single market, The Telegraph has learnt. EU diplomats revealed the idea was floating informally around the corridors of power in Brussels, ahead of the expected talks over the future UK-EU relationship and free trade agreement. If the plan gains more traction, it will put some of the leaders of the EU-27 in conflict with the European Commission, which is leading the Brexit negotiations on their behalf. – Asa Bennett for the Telegraph (£)

  • David Davis’s Mad Max comparison is an own goal – Katy Balls for The Spectator
  • Davis made a positive pitch – so why was the chosen spin for his speech so negative? – Mark Wallace for ConservativeHome

Ben Ramanauskas: The myth of dystopian deregulation

The Brexit Secretary, David Davis has thankfully made clear to the world that Brexit won’t turn the UK into a dystopian hellscape such as the one depicted in Mad Max… Davis was, of course, being flip. However, some people really do believe that a low tax, low regulation free-market economy would lead to disaster on a cinematic scale. It is a lurid and colourful theory, but not one supported by the evidence… Half a century ago, the newly independent Singapore was poor and had no natural resources yet the economy was transformed dramatically, taking the country from poverty to prosperity… As for Venezuela, the story could not be more different. Having the world’s largest oil reserves should be a predictor of economic success for the country and, if coupled with the rule of law, then a thriving and prosperous population. – Ben Ramanauskas for CapX

  • The swathes of post-industrial poor who voted for Brexit must not be shafted by sneaky economic liberalism – David Skelton for the Telegraph (£)

Gareth Bacon: Brexit wounds must be healed in London

An 80-year-old Leave-voting Londoner was targeted in her home by individuals who claimed to be “the real 48 per cent”. The elderly lady received a death threat in the post, which was then reiterated towards Zac Goldsmith by a BBC radio presenter, who was subsequently fired. There is now a police investigation over the threat. Other letters were also sent to Leave donors and MP Andrea Leadsom… Sadiq Khan, the Mayor of London, has made his stance on Brexit very clear. He backed Remain in the referendum and has continued at every opportunity to advance Remain arguments such as an insistence that Britain remain in the single market. – Gareth Bacon AM, GLA Conservative leader for ConservativeHome

  • Sadiq Khan urges London’s EU citizens to punish Theresa May for ‘Brexit chaos’ in spring local elections – Evening Standard

Lord Bridges: Ministers need to be clear on negotiation priorities — control of UK affairs or access to European markets?

Any such deal on financial services is likely to require the UK to remain almost completely aligned with future EU regulations. So in the future, we would face a choice: do we accept an EU rule, made in Brussels but not in our interests — or do we say “no” and lose market access? Would it be acceptable for the EU to retain this level of control? If our financial services are to win in a digital world, where innovation is fast outstripping the regulators, doesn’t the Government need as much control as possible? Many Europeans see the UK’s wish to keep financial services’ access to the EU as the strongest card in Brussels’ hand. They will only play it at the last minute and want something valuable in return. – Former DExEU Minister Lord Bridges for the Evening Standard

Comment in Brief

  • Trump stumbles towards his threatened trade war – Jeremy Warner for the Telegraph (£)
  • European social democracy is being torn apart, and populists are feasting on its corpse – Matthew Goodwin for the Telegraph (£)
  • Our obsession over Brexit is hurting the nation elsewhere – Paul Blanchard for City A.M.
  • Rally round Brains for Brexit – ConservativeWoman
  • The City should fear Corbyn much more than Brexit – Christian May for City A.M.
  • Why we’re taking our Brexit bus on the road – Baroness Lane Fox for The Times (£)
  • The politicised economics of Brexit – Paul Austin Murphy for The Conservative Online
  • Brexiters are hunting mythical beast over EU market access – Hugo Dixon for The Times (£)
  • The argument that the EU stops wars – John Redwood’s Diary
  • Neither side is happy with this fudge on immigration – Jonathan Portes for The Times (£)

News in Brief

  • Anti-Brexit campaign group on £150k hiring spree to reverse EU referendum – The Sun
  • Campaigners to stop Brexit prepare 6-week advertising blitz – FT (£)
  • Scottish farmers warn of food chain disruption without ‘immediate’ action on post-Brexit EU workers – Telegraph (£)
  • Don’t jettison historic freedoms in rush to leave EU, Theresa May is warned – Evening Standard
  • Tech start-ups implement Brexit contingency plans – FT (£)