Wednesday 4 October 2017

EU PARLIAMENT VOTES INSUFFICIENT PROGRESS

Yesterday's debate in the EU parliament about the withdrawal talks has ended with a 557 to 92 majority for the resolution that there has been insufficient progress and therefore the talks cannot move to the second phase where trade is to be discussed (HERE). The resolution is not binding on the Council but nonetheless it will carry weight.

M Barnier was quite clear: the 27 should not be asked to pay for financial commitments made by 28 countries and was apparently cheered for it.

But he also made another comment that Britain has "underestimated the very heavy human and social, legal, financial, technical and economic consequences of Brexit". Here, because they were told so, many people believe not only that there will be no costs at all but we will actually be better off! There is a shock coming for someone and I do not think it will be Mr Barnier.

If Mrs May's plan with her Florence speech was to kick-start the talks so that they could move on to trade in October it has obviously failed. CapX, an on-line and rather right wing news source dedicated to encouraging popular capitalism, told us in August (HERE) that the EU would "have to start trade talks before September" because the EU leaders will intervene at a political level. At the moment we will be lucky to get them underway before January, if at all.

The Independent report it (HERE) and George Osborne's Evening Standard (HERE).