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Theresa May warns she will reject Brexit transition if UK has failed to strike long-term EU trade deal | Theresa May warns she will reject Brexit transition if UK has failed to strike long-term EU trade deal |
(about 4 hours later) | |
Theresa May has warned she will reject a transition to cushion Brexit if she has failed to also strike a long-term trade agreement with the EU – raising the chances of a “no deal” exit. | Theresa May has warned she will reject a transition to cushion Brexit if she has failed to also strike a long-term trade agreement with the EU – raising the chances of a “no deal” exit. |
The Prime Minister said Britain must know “where you are heading” before agreeing the two-year transition she has proposed, to try to break the deadlock in the talks. | The Prime Minister said Britain must know “where you are heading” before agreeing the two-year transition she has proposed, to try to break the deadlock in the talks. |
The stance echoes a statement, last week, by the Brexit Secretary David Davis, which was immediately attacked as “extraordinarily dangerous” by a pro-EU group. | The stance echoes a statement, last week, by the Brexit Secretary David Davis, which was immediately attacked as “extraordinarily dangerous” by a pro-EU group. |
It is widely agreed, both at home and in Brussels, that there is no time to agree permanent trading terms, given the need to reach a deal by next autumn. | It is widely agreed, both at home and in Brussels, that there is no time to agree permanent trading terms, given the need to reach a deal by next autumn. |
Last week, Mr Davis told MPs the Government would not sign up to what one Conservative MP called a “permanent bridge to nowhere” – with no end state agreed. | |
“Such a transition phase would only be triggered once we have completed the deal itself,” he said. | “Such a transition phase would only be triggered once we have completed the deal itself,” he said. |
Asked, by The Independent, if that was agreed government policy, the Prime Minister’s spokesman replied: “Yes.” | |
“Everyone has always been clear that we are looking to wrap all this up in one single go. Everything will be agreed at the same time,” he added. | “Everyone has always been clear that we are looking to wrap all this up in one single go. Everything will be agreed at the same time,” he added. |
“As the Prime Minister has set out, it’s a bridge to where you are heading. You need to know where you are heading.” | “As the Prime Minister has set out, it’s a bridge to where you are heading. You need to know where you are heading.” |
Cabinet divisions over what sort of long-term trading arrangements Britain should seek have made a transition the only likely way to avoid “crashing out” of the EU. | |
Indeed, no proper discussion has taken place – because one group of ministers is demanding a clean break, while the other seeks to remain as close to the EU as possible. | |
In her Florence speech, Ms May suggested the transition would be used to put into place agreed arrangements, but avoided setting down firm conditions. | In her Florence speech, Ms May suggested the transition would be used to put into place agreed arrangements, but avoided setting down firm conditions. |
She has now been forced to abandon that deliberate ambiguity, after her Brexit Secretary sought to reassure Brexiteer Tories in the Commons last week. | She has now been forced to abandon that deliberate ambiguity, after her Brexit Secretary sought to reassure Brexiteer Tories in the Commons last week. |
He said Rishi Sunak, a backbencher, was “right” that a transition would only be accepted “if the final relationship with our European allies has been agreed, at least in principle”. | He said Rishi Sunak, a backbencher, was “right” that a transition would only be accepted “if the final relationship with our European allies has been agreed, at least in principle”. |
“We cannot carry on negotiating through that. Our negotiating position during the transition phase would not be very strong,” Mr Davis added. | “We cannot carry on negotiating through that. Our negotiating position during the transition phase would not be very strong,” Mr Davis added. |
The No 10 spokesman argued both sides were now keen to agree future trading arrangements “as soon as possible”, after the EU said it would start internal preparatory work. | The No 10 spokesman argued both sides were now keen to agree future trading arrangements “as soon as possible”, after the EU said it would start internal preparatory work. |
However, asked if a decision to seek a transition “in principle” would be made by the end of December, the spokesman replied: “I’m not going to get ahead of myself.” | |
The further hurdle thrown in the way of a transition will alarm business leaders, who have joined forces to warn jobs and investment will be lost if there is further delay. | The further hurdle thrown in the way of a transition will alarm business leaders, who have joined forces to warn jobs and investment will be lost if there is further delay. |
In a draft letter to the Brexit Secretary, five business groups said time was running out before firms start implementing contingency plans for a no-deal departure. |
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