May rejects ‘cash before trade’ talks
THERESA MAY yesterday rebuffed a fresh demand for Britain to agree a swingeing Brexit divorce bill before talks on a new trade deal with Brussels can begin.
France’s President Francois Hollande telephoned the Prime Minister to claim the negotiations about Britain’s future relationship with the EU are effectively on hold.
His remarks, repeating a warning from Germany’s Chancellor Angela Merkel, threatened to jeopardise her hopes of signing a comprehensive deal in time for the UK’s departure from the bloc in March 2019.
Brussels officials want to try to force British taxpayers to pay a bill estimated at about £50billion as the price of quitting the EU. An angry row over the demand, which erupted within hours of Mrs May triggering the exit process on Wednesday, is already threatening to poison the start of negotiations.
In a statement, the Elysee Palace said President Hollande told Mrs May it was “necessary first to initiate discussions on the arrangements for withdrawal, notably relating to citizens’ rights and the obligations arising from commitments made by the UK”.
The statement added: “On the basis of progress being achieved on that, we would be able to open discussions on the issue of the future relations between the UK and the EU.”
Downing Street last night insisted the issues of exit terms and trade could be discussed simultaneously.
The Prime Minister’s spokesman said: “We believe the negotiations should take place in parallel.
“It does make clear in Article 50 that the future arrangements of the country that is leaving the EU should be part of the framework for the Article 50 process.”
British diplomats are understood to be placing little weight on President Hollande’s remarks given his scheduled departure from office this summer.
Senior Tory MP John Redwood yesterday said the EU demands were “provocative and silly”.
“I do think no deal is better than a bad deal,” he said, suggesting Britain should simply walk away from talks if EU negotiators were not prepared to offer an acceptable deal.
Meanwhile, Cabinet ministers yesterday sought to play down suggestions that the Government was threatening to halt security cooperation with the French and Germans in retaliation for the attempt to delay trade talks.
EU Exit Secretary David Davis rejected claims that Mrs May was trying to “blackmail” Brussels by linking trade and security in her letter formally notifying the EU of Britain’s intention to quit.
Most leaders had recognised a “positive” tone in her letter, he said.
Work and Pensions Secretary Damian Green said the row was a “misunderstanding”.
“It’s absolutely not a threat,” he added.