On the menu at Chequers, Theresa’s Brexit fudge
SITTING down for eight hours of gruelling talks, this is the Prime Minister’s Brexit ‘war cabinet’ at Chequers yesterday.
The senior ministers were summoned to Theresa May’s country retreat in a bid to thrash out negotiating aims before trade talks with Brussels begin next month.
But Whitehall sources acknowledged ministers were likely to ‘fudge’ key decisions such as how quickly to diverge from EU rules in a bid to avoid a row.
Sources suggested the position would be a ‘development’ of existing Government thinking, rather than a radical new strategy.
Mrs May is expected to use a speech next week to develop the so-called ‘three baskets’ approach, which would see parts of the economy diverge from EU rules at different rates.
But Brussels warned that the Government’s approach did not fit with its own aims. A set of slides setting out the European Commission’s position stated: ‘UK views on regulatory issues in the future relationship including the “three basket approach” are not compatible with the principles in the European Council guidelines.’
Downing Street dismissed this, saying the two sides were ‘at the
start of a negotiation’. But the warning underlined the difficulty Mrs May faces in agreeing a position acceptable to both her Cabinet and the EU.
Chancellor Philip Hammond is said to be pushing for only gradual divergence from EU rules, while Boris Johnson and Liam Fox both favour a cleaner break that they say would aid new trade deals.
One Cabinet source said: ‘This is setting an opening position for a negotiation. Everyone agrees we should be ambitious – it is basically have your cake and eat it.’
International Trade Secretary Dr Fox was said to be ‘seething’ after Government guidelines for the transition period appeared to suggest he would be unable to sign trade deals until the UK had fully left – probably not until 2021.
While Downing Street insisted this was not the case, Eurosceptics are on red alert for any sign that Brexit might be watered down.