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16 September 2016

Bloomberg: Hammond said to be ready to ditch EU Single-Market on Brexit


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Chancellor of the Exchequer Philip Hammond is ready to accept that Britain may have to give up membership of the European Union’s single market to achieve the immigration restrictions that voters have demanded, according to two officials familiar with his thinking.


With the government staking its credibility on regaining control over U.K. borders after the June 23 Brexit vote, Hammond considers it unrealistic to expect actual membership of the single market after Britain leaves the EU, the officials said, speaking on condition of anonymity because the discussions were private. Instead, Treasury staff are drawing up their own blueprint which they hope will allow Britain’s financial services firms to retain similar levels of access to Europe, the officials said.

Hammond’s plan hinges on the argument he set out earlier this month that London as a financial center is too valuable for the EU to jeopardize, since many European companies use its markets to raise capital.

“I genuinely believe London delivers not only for the U.K., but the European Union as a whole,”  Hammond told a House of Lords Committee on Sept. 8. He has also said he wants to win “the best deal” for companies “including our world leading financial services industry.”

A Treasury spokesperson said in a statement that its position is clear and that it wants Britain to remain a great place for financial services. It stands ready to help the sector maximize the opportunities that leaving the EU presents, the spokesperson added. [...]

Negotiations are nearing with Tusk citing Prime Minister Theresa May as telling him she is likely to trigger them in January or February. Foreign Secretary Boris Johnson also identified early-2017 as a probable start date when he met his Italian counterpart this week, according to an official familiar with the conversation. [...]

Full article on Bloomberg



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