Davis states transitional Brexit deal unlikely
If you have been reading my other post, you may have noted two things. One was that I suggested if sense were to prevail, it would be in the interests of the EU and the UK to reach and interim agreement on Brexit, to be followed by a long term arrangement. The other thing I suggested was that if something is logical, sensible and reasonable, it is unlikely to happen.
David Davis, Britain’s Brexit secretary, said he was not interested in a transitional deal to cushion Britain from the effects of Brexit and that he would consider one only in order to be kind to the EU. Perhaps this is a negotiating stance. Mr Davis stated his views on 15 November at a private meeting with the City of London Corporation. He repeated his views about a transition in meetings in Brussels and Strasbourg in late November.
Financial companies have been pressing for a Brexit transition period. Mr Davis accepted that Britain’s sudden departure could compromise the EU’s financial stability and said he would be kind if the EU asked for an interim deal.
EU officials have expressed astonishment at the idea that the EU would need to ask the UK for a favour in this regard and suggested it was ‘deluded’ and a ‘denial of reality’.
The department to exit the EU said the government was engaging widely with businesses about the challenges and opportunities of Brexit. It suggested ‘This account does not properly reflect government policy or Mr Davis’s view.’ When asked to clarify the position the department declined., stating ‘Brexit means Brexit and these are complex negotiations that cannot be carried out in public. Our rivals on the continent are not revealing their hands and neither will we.’
Mr Davis believes a transition period is not necessary as he is convinced he can get a complete fast-tracked trade deal by late 2018 that would negate the need for an interim deal after Brexit. The Treasury and Brussels see that timetable as almost impossible.
He indicated that the EU’s ‘inflexible approach’ on immigration in particular meant it was unlikely the UK would achieve access to the single market, but a trade deal would be relatively easy to secure and would not pose a significant problem for the UK.