NOW EU FEARS NO-DEAL BREXIT
At last Brussels ‘blinks’ over World Trade threat
BRUSSELS appeared to “blink” for the first time in the Brexit negotiations last night.
In a bid to prevent the UK leaving under World Trade rules, the EU is set to ditch one of its “red lines”.
Fearing a no-deal Brexit, it will offer Britain access to its single market without the once-obligatory condition of free movement of EU citizens.
Senior Tory MEP David Campbell Bannerman, a member of the European Parliament Brexit steering group, said that EU leaders had “blinked” because they
realised that a deal in which Britain went to World Trade Organisation rules would not harm the UK but cause them massive economic damage.
He said: “They know we can and will go on to WTO rules and it will hurt them more so they have blinked.”
A senior EU source said that European leaders are preparing to negotiate a deal that would let Britain opt out of free movement but remain in the single market.
The source added that member states have signalled a willingness to concede on some of the Bloc’s “red lines” in the Brexit talks in return for more concessions from Theresa May.
Discussions about a potential trade-off are expected to be on the table when all 28 EU leaders meet in Salzburg next month.
EU chief negotiator Michel Barnier has previously said he would oppose Britain staying in the single market as it would “undermine” the system and represent an attempt to “cherry-pick” the best parts of the EU.
Pressure has been coming on Mr Barnier to compromise from eastern European member states who want to ensure a good deal and future relations with Britain.
It is also understood that German Chancellor Angela Merkel is worried about the stand-off, while Mrs May held a meeting last week with French president Emmanuel Macron to exert pressure on Brussels.
Foreign Secretary Jeremy Hunt has toured Europe warning of “an accidental no deal” while international trade secretary Dr Liam Fox said no deal was the most likely outcome of the negotiations.
Mr Campbell Bannerman, who fears the offer could be “a trap”, has had talks with senior members of EU chief negotiator Michel Barnier’s team and believes that the EU team and Brexiteers are “largely on the same page”.
He said: “We all want a free trade deal not this sort of mess.
“We want what is known as ‘Super Canada’ or ‘Canada plus plus’ which is a version of the free trade deal with Canada but including services.
“Barnier and Donald Tusk have offered most of this and that is where we should be negotiating.”
However senior Brexiteers fear the latest EU proposal would simply be an extended version of Mrs May’s controversial Chequers plan which Boris Johnson warned would turn Britain into an “EU colony” after he resigned as foreign secretary over its adoption.
Last night senior Conservative backbencher Jacob Rees-Mogg, who heads up the powerful European Research Group of pro-Brexit MPs, said: “Remaining in the single market would leave the UK as a vassal state.
“We would be a rule taker subject de facto to the European Court of Justice and probably, as with Norway, liable for payments to the EU.
“It would not even provide frictionless borders as that requires membership of the customs union as well. It would, from the Government’s point of view, be a pitiable failure.”
Former Brexit minister David Jones said: “If this is true it shows that EU member states are concerned about the prospect of the UK leaving without a negotiated withdrawal agreement, because they know it would hurt them.
“However, we must not fall for this. This deal would leave us having to comply with EU standards, stay in the customs union and no doubt remaining subject to ECJ jurisdiction.
“That wouldn’t be Brexit and wouldn’t be acceptable to voters. Far better to leave on World Trade Organisation terms and be an independent country again.”
The movement by Brussels comes after a series of reports published in the UK revealed that a World Trade deal – which is relying on WTO rules – is the “best option” for Britain but terrible for the EU.
Mrs May has consistently promised that “no deal is better than a bad deal” making it clear she is prepared to walk away from talks.