Monday

20th May 2019

May extends Brexit olive branch

  • May (l) with Sturgeon - Scottish leader prepared to call independence referendum (Photo: First Minister of Scotland)

British prime minister Theresa May is to launch new Brexit talks with Scotland, Northern Ireland, and Wales, as nerves fray, also among banks, at the prospect of a rupture from the single market.

The talks are to take place in a parliamentary subcommittee, called the “joint ministerial committee (EU negotiations)”, to be chaired by May’s Brexit minister David Davis.

Read and decide

Join EUobserver today

Support quality EU news

Get instant access to all articles — and 18 year's of archives. 30 days free trial.

... or join as a group

  • Good Friday pact at risk if UK leaves EU, McGuinness said (Photo: Miss Copenhagen)

May is to meet the Scottish, Northern Irish, and Welsh leaders in London on Monday (24 October) to launch the process.

The subcommittee is to meet by the end of November and “at least” one more time before Christmas, prior to the start of EU exit negotiations at the end of March.

“The great union between us has been the cornerstone of our prosperity in the past - and it is absolutely vital to our success in the future,” May said in a statement.

She said the new forum would give the devolved governments a “direct line” to Davis in order “to help shape the UK’s EU exit strategy”.

“Contrary to some speculation, no final decisions have been taken and how the UK leaves the EU will not boil down to a binary choice,” she said, referring to the choice of staying in the EU market, and accepting EU migrants, or breaking off EU relations in what some have called a "hard Brexit".

People in Northern Ireland and Scotland voted to stay in the EU in the June membership referendum.

Writing in an opinion article in the Financial Times newspaper on Monday, the Scottish leader, Nicola Sturgeon, said she wanted a “flexible Brexit” in which Scotland could retain EU ties even if England and Wales went for the hard option.

“I accept that there is a mandate to take England and Wales out of the EU, I do not accept there is any such mandate to take any part of the UK out of the single market,” she said.

Constitutional crisis?

She renewed her threat to hold a second referendum on Scottish independence if need be, adding: “Scotland must be able to consider independence if it becomes clear that it is the best ... way of protecting our interests”.

Martin McGuinness, the deputy first minister of Northern Ireland, said on Sunday that “any attempt to drag the North out of the EU” could undo the so-called Good Friday accord that ended the sectarian conflict there.

“I will make clear … the democratic imperative to recognise and respect the vote in the north to remain in the EU,” he said.

Carwyn Jones, the Welsh leader, said he would not accept any deal that included EU tariffs on Welsh-made goods.

He also said that the Welsh parliament should vote on May’s Brexit strategy prior to her launch of EU negotiations.

The threat of the UK breaking up due to Brexit reared its head immediately after the June referendum.

The British think tank, the Institute for Government, in a report published on Monday, also warned that unless May struck a deal with the devolved powers, then it could cause “a serious breakdown in relations between the four governments”, leading to a “full-blown constitutional crisis”.

The threat of firms relocating from the City of London to EU financial centres such as Dublin, Frankfurt, or Paris also hangs over May’s government.

Quivering hands

Writing in an opinion article in The Observer newspaper on Sunday, Anthony Browne, the head of the British Bankers’ Association, a pressure group, said CEO’s hands are “quivering over the relocate button”.

“Delegations from Frankfurt, Paris, Dublin and Madrid are all coming to the UK to pitch to bankers”, he said.

“Many smaller banks plan to start relocations before Christmas. Bigger banks are expected to start in the first quarter of next year”, he added.

Browne said that a hard Brexit amounted to a “cliff edge” for banks, in which their £20-billion (€22.5bn) a year business of selling services to Europe became “illegal” the day the UK left.

London-based firms currently sell services to the EU under so-called “passporting rights”.

If these were lost, they could keep doing it under a so-called “equivalence regime”, which would cover selected services only and which, in Browne’s words “can be withdrawn at virtually no notice and will probably mean the UK will have to accept rules it has no influence over”.

“For most banks, having equivalence won’t prevent banks from relocating their operations”, he said.

May struggles to contain Brexit angst

Government under fire from Scotland and from opposition MPs for "chaotic" Brexit preparations, despite May's new committee and pledge on parliament debates.

May to step down after fourth EU vote

British prime minister Theresa May has agreed to step down after her fourth attempt to pass an EU exit deal in June - no matter what the outcome.

News in Brief

  1. EU flies rainbow flag on anti-homophobia day
  2. EU to freeze money and visas of foreign cyber-attackers
  3. EU reassures US on arms sales
  4. Use euros over dollars in energy contracts, France says
  5. UK cross-party Brexit talks collapse
  6. Climate activists occupy German-Russian gas pipeline
  7. Farage got €515,000 of private perks
  8. French EU commissioner urges Italy not to overspend

Feature

'Swexit' off menu at election for first time in 24 years

The Swedish Left Party have abandoned euroscepticism to campaign on climate change - whilst the hard-right Sweden Democrats spy possibilities of a link up with Matteo Salvini of Italy and France's Marine Le Pen.

Opinion

Brexit vs Grexit: The six stages of losing to the EU

Theresa May's venture seems very similar to the attempt by Alexis Tsipras in 2015 to persuade Brussels to accept his terms for the bail out - a huge negotiation failure, presented to the public as the best possible deal.

Stakeholders' Highlights

  1. Vote for the EU Sutainable Energy AwardsCast your vote for your favourite EUSEW Award finalist. You choose the winner of 2019 Citizen’s Award.
  2. Nordic Council of MinistersEducation gets refugees into work
  3. Counter BalanceSign the petition to help reform the EU’s Bank
  4. UNICEFChild rights organisations encourage candidates for EU elections to become Child Rights Champions
  5. UNESDAUNESDA Outlines 2019-2024 Aspirations: Sustainability, Responsibility, Competitiveness
  6. Counter BalanceRecord citizens’ input to EU bank’s consultation calls on EIB to abandon fossil fuels
  7. International Partnership for Human RightsAnnual EU-Turkmenistan Human Rights Dialogue takes place in Ashgabat
  8. Nordic Council of MinistersNew campaign: spot, capture and share Traces of North
  9. Nordic Council of MinistersLeading Nordic candidates go head-to-head in EU election debate
  10. Nordic Council of MinistersNew Secretary General: Nordic co-operation must benefit everybody
  11. Platform for Peace and JusticeMEP Kati Piri: “Our red line on Turkey has been crossed”
  12. UNICEF2018 deadliest year yet for children in Syria as war enters 9th year

Stakeholders' Highlights

  1. Nordic Council of MinistersNordic commitment to driving global gender equality
  2. International Partnership for Human RightsMeet your defender: Rasul Jafarov leading human rights defender from Azerbaijan
  3. UNICEFUNICEF Hosts MEPs in Jordan Ahead of Brussels Conference on the Future of Syria
  4. Nordic Council of MinistersNordic talks on parental leave at the UN
  5. International Partnership for Human RightsTrial of Chechen prisoner of conscience and human rights activist Oyub Titiev continues.
  6. Nordic Council of MinistersNordic food policy inspires India to be a sustainable superpower
  7. Nordic Council of MinistersMilestone for Nordic-Baltic e-ID
  8. Counter BalanceEU bank urged to free itself from fossil fuels and take climate leadership
  9. Intercultural Dialogue PlatformRoundtable: Muslim Heresy and the Politics of Human Rights, Dr. Matthew J. Nelson
  10. Platform for Peace and JusticeTurkey suffering from the lack of the rule of law
  11. UNESDASoft Drinks Europe welcomes Tim Brett as its new president
  12. Nordic Council of MinistersNordic ministers take the lead in combatting climate change

Join EUobserver

Support quality EU news

Join us