Ross Clark
internal single market the EU is fundamentally protectionist when it comes to doing trade beyond its borders.
Given a choice between getting on with a free trade deal with Britain and trying to squeeze a few more billion out of Britain in order to fund its social and economic development programmes Jean Claude-Juncker and his appointed negotiator Michel Barnier have chosen the latter.
Yet there are a great number of commercial interests in EU countries – the German car industry among them – which are not going to tolerate the EU putting up trade barriers with Britain. There are already plenty of voices protesting at the stubbornness of the EU negotiating team and at politicians such as Angela Merkel who are blocking trade negotiation. The closer we come to Britain’s exit date of March 2019, the louder those voices will become.
That is why it is so important that our own Government does not blink first and capitulate, meekly agreeing to pay billions beyond what has already been offered. We do not owe it – and so to pay it would make the Government look desperate.
No other country, in negotiating a free trade deal with the EU, would agree to pay a fee. Can you imagine how Japanese trade ministers would react if, in the course of their current negotiations, the EU suddenly turned round to them and said: Oh, by the way, we’re not going to talk any further unless you agree to pay us 60 billion euros?
The EU thinks it can get away with demanding money from Britain because it senses that Britain, and even the Government itself, is deeply divided on Brexit. It has made the calculation that the chance of Britain leaving the EU without a trade deal will cause such panic that the Government will have to swallow its pride and cough up.
True, June’s election result has put Mrs May and her ministers in a weak position. As has already been proven it doesn’t take much for the Government to lose an important vote. Too many defeats could be fatal.
Yet here is a clear issue on which Mrs May can demonstrate leadership and earn the respect that she needs in order to reinvigorate her Government. What is so important is that she is firm and consistent.
WHAT she and her negotiating team need to do is to decide which EU programmes we still wish to be a part of. It should come up with a reasonable figure for pension liabilities – or alternatively offer to take on the full responsibility of paying the pensions of retired British EU officials. It should then present that as the sum that Britain is prepared to pay and stick to it.
The next move, the Government should be clear, needs to come from the EU. It should then make a plan for the eventuality of talks collapsing and Britain leaving the EU without a deal – to make the EU fully aware that this is a genuine option and one which no one need fear.
Remain resolute and Theresa May will earn respect from her enemies as well as her supporters. Capitulate to the EU’s demands and the opposite will happen – even staunch Leave supporters will begin to admire Michel Barnier for his gamesmanship. That is not a prospect that the Prime Minister should be prepared to countenance.
‘No other country would agree to a fee’