THE next phase of Brexit negotiations will generate “the same public thunder and lightning” as last year’s troubled talks, David Davis has warned.
The Brexit Secretary said detailed discussions about the transition period after the UK leaves the EU and future trade relations would “not be straightforward”.
But writing in the Telegraph, he also warned the EU it could not “cherrypick” a deal that excluded financial services and the City of London.
The EU’s chief negotiator, Michel Barnier, warned last month that the Uk could not have a special deal for the City, and it was unavoidable that banks and financial firms would their ability to trade freely in the EU if, as planned, Britain left the single market.
“There is not a single trade agreement that is open to financial services. It doesn’t exist,” he said, adding the outcome resulted from “red lines that the British have chosen themselves”.
He said: “In leaving the single market, they lose the financial services passport.”
However Mr Davis said the UK wanted “the full sweep of economic cooperation” and financial services must not be excluded from any agreement.
He wrote: “I do not believe the strength of this cooperation needs to change because we are leaving the European Union. Many of these principles can be applied to services trade too.
“Given the strength and breadth of the pan-European economic relationship, a deal that took in some areas of our economic relationship but not others would be, in the favoured phrase of EU diplomats, cherrypicking.”
The UK government is under pressure to provide more clarity for business as the new phase of exit talks begin.
EU leaders in the rest of the bloc remained united during the first stage of negotiations, but the bond could be tested as the EU considers what kind of trading terms are on offer to the UK – an important export market for many member states.
There was also growing speculation Foreign Secretary Boris Johnson may be given a new “supercharged” Brexit role in a reshuffle next month.
Allies of Mr Davis were said to be concerned he could be marginalised if Mr Johnson replaces Business Secretary Greg Clark in a beefed-up portfolio designed to make Mr Johnson more answerable for the delivery of Brexit.
Theresa May, who helped create the Women2Win campaign in 2005 to boost the number of female Tory MPs, was also reported to be considering promoting more women to cabinet.
Five of the 21 positions are currently filled by women, including Home Secretary Amber Rudd and Culture Secretary Karen Bradley.
Transport Secretary Chris Grayling, under fire for flying to Qatar on Tuesday as rail fares shot up, is among those rumoured for the chop.
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