EU ‘refusing to negotiate’, says Gove
– Michael Gove has accused Brussels of refusing to negotiate a new Brexit deal, saying the UK was seeking further talks “in a spirit of friendliness” despite repeated warnings from Boris Johnson that the country is ready to crash out of the EU come what may.
– This comes after the EU said UK demands to remove the Irish backstop from Theresa May’s deal were unacceptable. Irish PM Leo Varadkar has also reiterated that the withdrawal deal, including the backstop, cannot be renegotiated.
– The European Commission said it was willing to hold further talks, “should the UK wish to clarify its position”.
– It has been reported that Brussels diplomats briefed on a meeting between senior EU figures and Boris Johnson’s chief envoy had been told a no-deal Brexit was the UK’s “central scenario” and that Downing Street would not allow any discussions involving the backstop.
Legal bid to prevent Boris Johnson shutting down parliament
– A group of politicians has started a legal action aimed at preventing Boris Johnson shutting down parliament to force through a no-deal Brexit.
– The group of 24 parliamentarians include Liberal Democrat leader Jo Swinson, SNP MP Joanna Cherry and independent MP Heidi Allen. Their petition is being considered by a judge who will decide whether to allow the case to proceed.
– The UK is currently due to leave the EU on 31 October, with the prime minister saying Brexit will definitely happen on that day regardless of whether or not a deal has been agreed with the EU.
– Most MPs at Westminster are opposed to a no-deal Brexit, and there has been speculation that Mr Johnson could try to get around this by closing parliament in the run-up to 31 October. This is known as “proroguing”, and would require the permission of the Queen.
UK too desperate to secure US trade deal, says Clinton’s treasury secretary
– The former US treasury secretary Larry Summers has said he does not believe that a “desperate” UK would manage to secure a post-Brexit trade deal with Washington, as Dominic Raab, the new foreign secretary, heads to the US to scope out the potential for such an agreement.
– Summers, who was a senior official under Bill Clinton and Barack Obama, said the UK was in a weak position when it came to negotiating with trade partners.
– He stated that, “Britain has no leverage, Britain is desperate … it needs an agreement very soon. When you have a desperate partner, that’s when you strike the hardest bargain.”
London’s financial-centre status likely assured after Brexit, study says
– The Irish Central Bank has published a Financial Stability Note by Silvia Calò and Valerie Herzberg which examines the future of Global Financial Centres (GFC) after Brexit, from an EU perspective. The research presents a set of scenarios for the future of London and other financial centres in Europe after Brexit and finds the impact of fundamental factors on London could be very small. The potential dispersal of financial services to smaller centres like Dublin could have an impact on those centres.
– The study has said that London is likely to remain a significant financial centre after Brexit, adding that a rapid rise in services provided from Dublin, Amsterdam or Luxembourg could heighten financial-stability risks within the bloc.
– The brand premium that London enjoys could change in the event of an abrupt change in regulations, global trade patterns or institutions, the authors warned.