Ever since the referendum, the reality has hit home for the British government as to ‘the weakness of (its) bargaining position’, says the Financial Times. This ‘dawning’ of reality has led ministers to realise that ‘they are accepting Brussels’ demands rather than genuinely negotiating’ during discussions with the EU. When talk turns to trade in the new year, this is unlikely to change, says the FT.
It’s true, of course, that given the importance of the City of London, the EU will not want to ‘cut off’ European companies from accessing it when Britain leaves the EU. Yet even when it comes to this subject, Britain ‘will not have the upper hand’ in negotiations and Brussels ‘will set tough conditions’, predicts the paper. These conditions are partly justifiable, says the FT, pointing out that the EU will want to enforce regulations that ensure the UK financial services industry does not subject the ‘EU economy to volatility and excessive risk’. But there is also another, ‘less tenable motive’. Put simply, Paris is keen ‘to steal as much of the UK’s financial services business as it can’, says the FT. In light of this, other EU countries must ‘stand firm’ to ensure that new regulation is not used by France ‘for evidently mercantilist ends’. After all, Brussels should remember that it is in its own interests that financial services are carried out ‘in the most efficient and productive place possible’. Whether France likes it or not, this ‘usually means London’ concludes the FT.
The Sun meanwhile hits out at Michel Barnier, telling the EU chief negotiator to ‘button it’. The paper says that Barnier ‘is a puffed-up dandy with a God complex’ and criticises those who want Britain to stay in the EU for treating his ‘every utterance’ as ‘Holy Writ’. Finally though, it seems that ‘EU leaders have had enough’ of Barnier and what the Sun says is his consistent ability to go ‘way above his pay grade’. The paper reports today that even Jean-Claude Juncker (no stranger to criticising the British government’s approach) was reportedly angry at Barnier for suggesting that there would be ‘no place’ for financial services in any trade agreement between Britain and the EU. So why is Barnier apparently so keen to criticise Theresa May and the British position? The Sun has a suggestion: Bernier is ‘talking tough to increase his chances of becoming EU Commission President’. But he should remember one thing, says the Sun. If Britain walks away from the EU with no deal he will instantly become a ‘non-runner’ for the top job.
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