Hammond tells EU: Stop trying to ‘punish’ UK

PHILIP Hammond last night warned the EU that it takes ‘two to tango’ as he told the bloc to stop trying to ‘punish’ Britain for leaving the bloc.

He challenged EU leaders to spell out what sort of trade deal they want, accusing them of remaining ‘silent’ in a bid to outfox the UK.

The Chancellor also warned Europe to stop believing that Britain could be ‘punished’, insisting a deal would only be reached if they begin to fully cooperate.

Mr Hammond delivered the message to leaders during an economic summit in Berlin, in an attempt to call the EU’s bluff.

However, it emerged that Berlin was considering a plan to access to financial markets contingent on agreeing to ongoing payments into the EU’s budget.

It was also reported that Angela Merkel’s government might insist the UK accepts the jurisdiction of the European Court of Justice if it wants a wide-ranging trade deal.

The two sides reached an agreement on the first stage of negotiations last month.

Brussels leaders have said talks can only progress further once Downing Street spells out its trade plan.

But in his speech yesterday, Mr Hammond said the EU approach was hypocritical as it had failed to offer any counter-idea of what a future relationship might look like.

Mr Hammond told the EU it ‘takes two to tango’ and said they must abandon ‘any narrative of “punishment” for leaving’.

‘Both sides need to be clear about what they want from a future relationship,’ he told the summit.

He added: ‘I know the complaint from Brussels has been that the UK “hasn’t made up its mind” about what type of relationship it wants.

‘But in London, many feel we have little, if any, signal of what future relationship the EU27 [remaining members] would like to have with a post-Brexit Britain.’

The Chancellor pointed to the ‘enthusiasm’ shown by non-EU countries such as the US to forge a trading arrangement with Britain.

In comparison, he said Brussels had maintained ‘relative silence … on what the EU wants our future relationship to look like’ despite the close trading links.

He added: ‘I fear that many EU opinion-formers see this as a question only for British politicians, for British voters to resolve, before they engage with the EU27.’ Mr Hammond said the EU should ‘send a message’ to British voters. ‘That is my challenge to you,’ he added.