Theresa May’s Florence speech breaks Brexit deadlock in EU talks — as Britain offers £38billion for a two year transitional period
THERESA May last night warned the EU to accept her Brexit compromises or risk damaging Europe. The PM, in Florence, called for a two-year transition.
The PM wants a two-year transition period after Britain leaves in 2019, which will mean more free EU migration and an extra £18billion of funding to Brussels.
She also made a vow to “honour” all financial commitments during our membership could also send the final Brexit bill soaring to £40billion.
EU’s chief negotiator Michel Barnier said her speech in the Italian city had been “constructive” and praised her “willingness to move forward”.
But hardline Brexiteers were left furious by her offers, and accused her of betraying 17.4million Leave voters.In two further major concessions offered by Mrs May yesterday:
- BRITAIN will continue to help protect Europe’s security via defence and intelligence cooperation, with or without a deal.
- FUTURE decisions by euro judges after Brexit will be applicable to EU citizens living in UK.
Summing up her "grand bargain" offer, Mrs May insisted Brexit was not a threat to the EU.
Instead, she declared: “We don’t want to stand in the way.
“We want to be your strongest friend and partner as the EU, and the UK, thrive side by side.
“A partnership of interests, a partnership of values; a partnership of ambition for a shared future: the UK and the EU side by side delivering prosperity and opportunity for all our people.”
But Mrs May also warned Europe would be damaged if her new terms were rejected. She said: “We should be in no doubt, that if our collective endeavours in these negotiations were to prove insufficient to reach an agreement, it would be a failure in the eyes of history and a damaging blow to the future of our continent.
“If we were to fail, or be divided, the only beneficiaries would be those who reject our values and oppose our interests.”
She said keeping the current status quo until 2021 was vital to protect British and continental businesses from a cliff edge. Mrs May gave no precise figures, but No 10 last night said it expected the total amount for the two years after Brexit would be £18billion.
Other liabilities such as science and research projects and shared resources like Europol, worth another £20billion, would be negotiated separately.
The EU is demanding £50billion for future liabilities, such as Brussels staff pensions and spending projects already started.
The PM said: “I do not want our partners to fear they will need to pay more or receive less over the remainder of the current budget plan as a result of our decision to leave.”
EU chiefs previously accused her of trying to blackmail it over security. But she pledged Britain will remain “unconditionally committed to maintaining Europe’s security” — which would establish “a tone of trust” between them.
She also said British courts will always have to “take into account” the European Court of Justice’s rulings for EU citizens — a major Brussels sticking point in negotiations.
At the end of the two-year transition, the PM said she wanted “an economic partnership” without tariffs on trade, plus borders as frictionless as possible.
But she ruled out a Norway-style alignment with EU law or a simple Canada-style free trade deal, insisting: “We can do so much better than this.”
Chancellor Philip Hammond, Foreign Secretary Boris Johnson and Brexit Secretary David Davis accompanied the PM to the Italian Renaissance city.
Boris tweeted afterwards: “PM speech was positive, optimistic & dynamic — and rightly disposes of the Norway option! Forwards!”
Even ultra-federalist Brexit co- ordinator Guy Verhofstadt gave Mrs May’s speech a qualified welcome, saying the UK’s position “is becoming more realistic”.
Ahead of Monday’s fourth-round of Brexit negotiations, Mr Barnier said the PM had shown “a constructive spirit”.
However, he said problems with Ireland’s border had not been addressed and sought clarity on the full extent of our EU financial commitments. He added: “We stand ready to discuss the concrete implications of this pledge.”
Some senior Tories warned Mrs May she must not offer Brussels any more compromises.
Tory MP and the Chancellor’s aide Kwasi Kwarteng insisted she must not “pay a penny more”.
Former Ukip leader Nigel Farage also accused her of trying to fudge Brexit. He said: “What we’ve done today is we’ve kicked it into the long grass for another two years. It’s two fingers up to 17.4 million people who voted for Brexit.”
But business leaders were delighted — with the CBI heaping praise on the PM’s “positive tone”.
