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The EU lead negotiator on Brexit, Michel Barnier, delivered the keynote address at the Centre for European Reform’s “The Future of the EU” conference in Brussels on Monday morning.
His comments were blunt in relation to the type of relationship the UK will have with the EU when it leaves.
Barnier made it clear that the UK will not be able to cherry-pick the parts of the EU single market that it wants to retain but forgoing the rest.
He referred to the fact that the EU single market has been developed over the 44 years that the UK was part of the EU with considerable UK input and influence, but will lose the benefits of that on exit.
Irish border
On the Irish border, his comments were in line with those made by the Taoiseach on Friday that the UK must bring forward proposals on how the border will work once the EU leaves.
It was made very clear in his speech that the EU will continue to develop its internal market and external trade deals.
Barnier referenced the political difficulties that making a different arrangement for Northern Ireland might cause but in the process pointed out that Northern Ireland had 100 areas of co-operation with the Republic of Ireland that made it different already. The electricity market, as well as animal plant and disease control arrangements, were highlighted.
There didn’t appear to be any concessions on the issue of financial services either, with Barnier categorically saying that passport rights for UK-based companies would cease with the UK leaving the EU.
Customs Union
While making it clear the UK would no longer enjoy the advantages of the customs union and single market (not having the cake and eating it) but he did offer the prospect of a Free Trade Agreement (FTA).
Progressing to negotiate this, of course, is dependent on sufficient progress being made on the EU conditions for UK withdrawal.
These are the Brexit departure bill for the UK, future rights for EU citizens in the UK and the Irish border question.
The EU heads of state will decide at their December meeting if they believe sufficient progress has been made on these to move on to negotiation of future trade deals. However, while Barnier made clear in his speech his willingness to discuss an FTA with the UK, he laid out the conditions as well.
These included retaining EU principles on taxation, meaning the UK couldn’t expect an FTA with the EU if it adopted what is described as the Singapore model of low taxation and tariffs.
Similarly, he insisted that EU environmental policy be continued and of particular interest to farmers will be his insistence that EU standards on food safety would have to be retained.
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