The EU will be unashamedly “political” in Brexit talks Croatia’s prime minister, Andrej Plenković, whose country is taking over the presidency of the EU, has revealed. Asked whether the EU would use its power to switch off London’s ability to access European clients, Mr Plenković said: “I wouldn’t go into the vocabulary of weapons but what I have learned in international and European negotiations is that all arguments and considerations are treated as political.”
Meanwhile, a Brussels insider said the EU’s demands would be unprecedented adding: “We have to go well beyond the baseline provided in US cooperation or the more recent Swiss practice.”
The senior EU diplomat said: “Financial stability requires both sides to quickly agree an equivalence framework.
“And whilst the preference of the industry to continue on the same basis EU member states will need to be absolutely sure there is a level playing field with appropriate governance.”
The EU has already demanded access to UK fishing waters after Brexit, but an expert has warned Brussels could also insist for “preferential access to UK labour markets”.
David Henig, the director of the UK trade policy project at the European Centre for International Political Economy, said: “Apart from access to UK fishing waters and level playing field conditions typical of trade agreements we have heard little from the EU about their price for preferential UK access or equivalence, which given they are the larger market, could be high.
“Options such as preferential access to UK labour markets and deeper ties to the EU regulatory system are bound to be considered.”
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9.30am update: Ireland’s Simon Coveney says EU will not be rushed in Brexit talks
The Irish foreign minister said the EU would not be rushed in negotiations with Britain to thrash out their post-Brexit relationship after Boris Johnson drew a red line on extending the transition period.
Mr Coveney told the BBC: “The European Union will approach this on the basis of getting the best deal possible – a fair and balanced deal to ensure that the UK and the EU can interact as friends in the future – but the EU will not be rushed on this.”
