Brexit Britain is a good friend to the EU

Look past the petulance of the European Commission and our relations with fellow nations are positive

At the 1995 United Nations Copenhagen summit, Cuban President Fidel Castro goaded German Chancellor Helmut Kohl with a barbed snipe: “So what is the secret of the so-called German economic miracle?” Kohl calmly replied: “Actions, Mr Castro, not words.”

With Brexit talks looming, we can expect some petulance from Brussels. As Theresa May is showing on the free movement of people, Britain should respond with calm resolve, laced with a generosity of spirit.

This newspaper reported yesterday that the PM will make clear when negotiations start in March that it marks the cut-off point for free movement. EU nationals arriving after that will be subject to new laws passed by our Parliament. While that leaves ample room for sensible reciprocal arrangements – to allow our respective firms to recruit the talent they need, and facilitate business trips and tourism both ways – the days of opendoor immigration will be over. This is what the public expect, and it will help focus minds in Brussels that the UK is preparing for departure – whatever the outcome of negotiations.

Equally, by making clear our commitment to protecting the rights of EU nationals already here (assuming British expats are shown the same respect), the Government is seizing the moral high ground. This should be settled swiftly, giving reassurance to all those affected, and injecting some early goodwill into the talks.

The Government should show the same firmness towards suggestions from the EU chief negotiator Michel Barnier that the UK pay an exit fee of £50 billion in pensions liabilities, loan guarantees and other projects. If Britain really bore future liabilities, it would also be entitled to its share of EU assets – but neither the EU (nor any other international organisation) is set up that way.

It is curious posturing, precisely because these “liabilities” have no basis in EU law, so the demand is utterly unenforceable. Such peacock diplomacy ultimately makes a negotiator look weak.

Britain’s objectives, admirably set out in the Prime Minister’s White Paper, are by contrast straightforward and steeped in mutual self-interest. We already have barrier-free trade. Why adopt protectionist measures that hurt both sides? Tariff barriers would hit continental exporters and jobs more than the UK (because they sell us £60 billion more each year), and yield net gains in tariff revenue for the UK.

But our European partners know that already. We should stay focused on “win-win”. For all the tough talk, even Mr Barnier recognises that attacking the City would be to choke off £1 trillion in UK-based finance benefiting European firms.

Of course, Britain must prepare for all eventualities. Chancellor Philip Hammond is rightly focused on national measures – from cutting taxes to regulatory reform – to sharpen Britain’s competitive cutting edge, come what may. Trade Secretary Liam Fox is assiduously paving the way for new free-trade deals – a Commonwealth trade summit is set for next month – to boost UK exports, create jobs and cut prices at home. This needs patient preparation, not megaphone diplomacy – but nor does it require the EU’s permission either.

Nevertheless, Britain is showing our European friends we can be even better neighbours outside the political club. When the Polish prime minister, Beata Szydlo, visited Britain before Christmas, Mrs May listened to her and offered British troops and hardware to show we stand shoulder to shoulder with our Polish allies in the face of Russian belligerence.

When Mrs May hosted the Italian premier, Paolo Gentiloni, this month, the hand of friendship was extended. We have assets to help Italy deal with the migration crisis off its coast. And as Belgium, Germany and France wrestle with terrorism, Britain has quietly made clear our enduring commitment to help hunt those responsible.

There will come a time for compromise during the Brexit diplomacy. For now, we have spelt out our positive vision of a bright post-Brexit future – for Britain and the EU. As Helmut Kohl would have ruefully appreciated, our actions send a far more potent message than the occasional tantrum from Brussels.