So can a deal be reached between the EU and UK by Sunday, despite the pervading mood of gloom plus a sense – in public at least – that both sides are digging in their heels? It’s difficult but possible #Brexit /1
Today the European Commission chief hit back at the EU-is-in-denial-about-UK-sovereignty claim.Yes, she said, EU was insisting on what it views as ‘fair competition’ rules in exchange for giving the UK preferential access to the single market (tariff +quota free) but she added/2
that UK would remain free – “sovereign, if you wish” were the words she used – to decide what it wanted to do. If UK diverged the EU "would simply adapt conditions for access to our market. It would be the decision of the UK and would apply vice versa,” she said /3
Is this a change in the EU position? I'd argue no. The EU has gradually shifted focus as it has become increasingly aware that post-Brexit UK will want to make up its own rules and regulations for business; deciding for itself which industries it wants to invest in and promote /4
Despite this, EU would rather have a trade + security deal with UK than not. So Brussels has been pondering how it can live with UK’s sovereign right to diverge, protect single market and still have a deal. Answer: focus more on governance, not just level playing field /5