France’s Macron spells out reasons for Britain to stay in EU

“Be my guest,” French President Emmanuel Macron told Britain on Thursday, saying he would welcome any move by Prime Minister Theresa May to stay in the EU’s single market.

But he added a warning – London’s prized financial centre could not enjoy the same level of access to the EU under May’s current Brexit plan.

At a summit where both leaders hailed the two neighbors’ friendship and historic ties and tried to focus on deepening security and defense cooperation, differences over Brexit once again threatened to sour the meeting – underlining the struggle May faces to negotiate a deal that will protect the economy.

“The choice is on the British side, not on my side,” Macron told a news conference after being asked why he was opposed to Britain’s financial sector being included in any agreement on future trade between the two sides.

“They can have no differentiated access to the financial services. If you want access to the single market, including the financial services, be my guest. But it means that you need to contribute to the bud- get and acknowledge European jurisdiction.”

Britain has ruled out pursuing a deal with the EU that would mean it would have to pay into its budget or respect its four freedoms, including free movement of people. Instead May says she wants a bespoke free trade deal covering both goods and services.

But by pressing for the inclusion of the financial services sector – which accounts for about 12 percent of Britain’s economic output and pays more tax than any other industry, May has lit the fuse on what could become the argument that dominates the so-called second phase of the talks to dismantle more than 40 years of membership of the EU.

Last year, Macron launched a charm offensive on banks working in London’s City, calling on them to rebase in Paris.

“We recognize that as we’re leaving the EU we will no longer be full members of the single market,” May told the joint news conference.