The first working day of the new UK-EU relationship. We're going to hear a lot this year from all sides (remain and Brexit in UK, EU, etc) using any possible scrap of evidence. But what we need to look for is trends, over time, so a few to think about in this thread... 1/
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Source say Michel Barnier has told EU ambassadors that there has been no breakthrough on the fisheries question, and that reports to that effect were \u201ccompletely untrue\u201d
— Tony Connelly (@tconnellyRTE) December 7, 2020
Some useful threads will follow, first on the Northern Ireland protocol, where unfettered is still being defined...
The trouble with \u2018unfettered access\u2019...
— JPCampbellBiz - Wash your hands keep your distance (@JP_Biz) December 6, 2020
And on fish and level playing field. The latter seems, has always seemed, the most problematic, because the UK has apparently ruled out any compromise on shared minumum levels even if not automatic. That would be a deal breaker, but seems... unnecessary.
1/ On fish, both sides are far apart, but it sounds like the UK wants the EU to jump first before it, in turn, shows flexibility. The UK is offering a three year phase in but with an upfront payment of \u20ac300m in demersal fish (ie, out of the \u20ac650m EU boats catch in UK waters)
— Tony Connelly (@tconnellyRTE) December 6, 2020
Your reminder closing complex deals is never easy. But there are ways to facilitate and EU is good at doing this if you meet their red lines. But still the biggest concern that the UK never understood level playing field terms are fundamental to the EU.
In case it wasn't obvious the final choreography of a complex trade deal is complex. The big issues, and potentially some smallprint / related matters of relevance to both sides (for example I wonder if soon after a deal we hear about data or financial services equivalence?)
— David Henig (@DavidHenigUK) December 6, 2020
In the UK, one man's decision. Allegedly backed by a Cabinet who in reality will be quite happy to blame the PM either way. The temptation to send Michael Gove to seal the deal and end his leadership ambitions must be there...
Fact is: EU objectives/focus unlikely to change much in remaining 24-48 hours: fish, non-regression & ability to retaliate across sectors/entire agreement in case of systematic divergence by HMG
— Mujtaba Rahman (@Mij_Europe) December 7, 2020
Most in Cabinet want a deal. @BorisJohnson has big decision he now needs to make https://t.co/mJ49WLt3Qd
Fish was never a deal breaker. Level playing field was
— Mujtaba Rahman (@Mij_Europe) December 14, 2020
But LPF now more likely to come together after @EU_Commission move (on trade test for unlocking remedial measures & scope of arbitration over remedial measures)
If it does, expect deal on \U0001f420\U0001f421 too
It is the same "I move in principle you move in detail" shift we saw with the Northern Ireland protocol last year, when no PM could accept a border between GB and NI suddenly did, just as recently no PM would accept tariffs for divergence and seems to have done.
So, are we at deal yet? No, and it remains far from certain, but better than the gloom of Saturday. I still think the PM wants his ideal where everyone is happy, still hopes if only he can speak to Macron and Merkel he could get it, still to decide.
Second, I still maintain that Johnson has not made a decision here. Some days he leans towards Deal, sometimes towards No Deal
— Jon Worth (@jonworth) December 14, 2020
He has been stuck for weeks, and still is. He\u2019d ideally just not decide *anything*
And even if there is a deal it is now too late for either business to adjust to it, or the EU to ratify it according to normal procedure. In both cases you'd think we'd need an extension, but there is a big shrug on this whole question. Nobody knows.
And so, yet again on Brexit, we wait. In particular, those who actually do the trade, the businesses we rely on, are forced to wait for a formal outcome while preparing as best they can. Let's see what happens.
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