Brexit latest: Brussels rejects UK government’s approach to future relationship as Theresa May convenes Chequers away day
Brussels has published an update on its negotiating position for the EU’s relationship with the UK after Brexit ahead of Theresa May’s away-day at Chequers – and it puts forward a new set of red lines that the government will have to battle.
Chief amongst the new positions appears to reject the Prime Minister’s so-called “three baskets” approach, as set out in her Florence speech, regarding divergence from EU rules and regulations.
The slide, published last night, say: “UK views on regulatory issues in the future relationship including “three basket approach” are not compatible with the principles in the EuCo guidelines”. It notes that the European Courts of Justice must have a role and that any future influence by the UK over EU decision-making would “unsettle” the “ecosystem”.
It also argues that “if UK aspires to cherry pick [there will be a] risk for integrity and distortions to proper functioning of internal market, aggravated by absence of full EU “ecosystem” (including regulatory, supervisory, enforcement tools, with CJEU on top) and by proximity and level of economic integration; predictability for business to suffer”.
It also warns that special treatment would “undermine” existing arrangements with third countries.
The slides add that there will be “no mutual recognition/equivalence of substantive rules; limited mutual recognition of conformity assessment results with host rules”.
It continues: “No mutual recognition of third country professional qualifications, but framework for possible convergence.” Supervision will be carried out by EU institutions, with “no reliance on third country authorities”, the slides add.
Financial services appear to be covered by a section entitled: “EU rules on licences and authorisations” which applies “because of high-risk products or wider policy objectives”
The slides also insist there will be customs borders, which once again throws up the issue of what happens on the island of Ireland. Access to the Single Market will only be granted if third countries accept the four freedoms, which includes freedom of movement – a fundamental red line on the UK’s side.
The slides acknowledge two models which have been under the microscope recently. The Ukrainian model is described as offering: “no full single market benefits; benefits not applied in practice, and subject to autonomous EU decision. Requires involvement of CJEU for questions of interpretation of EU law. Specific context: convergence towards EU”.
On the Swiss model it says: “unsatisfactory governance, including to ensure full dynamic alignment, thus need to upgrade including regarding role of CJEU before further market access. Specific historical context: convergence towards EU/EEA.”