PM’s threat to EU is not a bluff – Fox

THERESA May is not ‘bluffing’ about her threat to walk away from Brexit talks if Brussels tries to punish Britain, Liam Fox has warned.

Speaking on the second anniversary of the EU referendum, the International Trade Secretary remained confident of getting a good trade deal. But he warned Brussels not to underestimate Britain’s resolve.

Dr Fox told the BBC it was ‘essential as we enter the next phase of the negotiations that the European Union understands that and believes it’.

He added: ‘I think our negotiating partners would not be wise if they believed that the Prime Minister was bluffing.’

And he said the threat had ‘added credibility’ because of the damage European economies would suffer if trade links with the UK were disrupted.

‘The economic impact on a number of European countries would be severe,’ he said.

‘So countries like Ireland, the Netherlands, Belgium... would really feel the impact of that and that cannot be what the EU 27 actually want to see.’