Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

UK's divorce bill figure will come in final Brexit deal: trade minister

Published 10/22/2017, 11:40 AM
Updated 10/22/2017, 11:40 AM
© Reuters. Britain's International Trade Secretary, Liam Fox, arrives for a meeting in Downing Street in central London

© Reuters. Britain's International Trade Secretary, Liam Fox, arrives for a meeting in Downing Street in central London

LONDON (Reuters) - Britain can only come up with a figure for a financial settlement with the European Union when Brexit has been agreed, trade minister Liam Fox said on Sunday, warning leaders not to believe London is bluffing over a no deal.

Prime Minister Theresa May won a reprieve last week in the talks to unravel more than 40 years of union, when EU leaders offered a signal that the negotiations could move on to a discussion of future ties in December. [nL8N1MU7RH]

But the British leader, weakened after losing her Conservatives' majority in a June election and failing to reset her agenda at an ill-fated party conference, faces several hurdles at home before being able to force the talks forward.

She must get legislation to sever ties with the EU through both houses of parliament, and, on Sunday, the opposition Labour Party said it would team up with Conservative rebels to try to force changes to the EU withdrawal bill.

Fox, speaking on ITV (LON:ITV) television, said Britain would offer the other 27 EU members "further assurance" on its divorce before the next summit in December to unlock the talks to make way for a discussion of future trade ties.

"I don't know what that number is but it's very clear that we could only have that final number as part of a final agreement, we would want to know what the end state is," Fox said.

"Away from the hyperbole around the divorce bill there is actually a great deal of cooperation going on between us," he said, adding that the government would show the EU that "we are moving in the right direction" on the first phase of talks.

But he also said the EU should not believe that Britain was bluffing by saying it was preparing for a no deal, describing trading according to World Trade Organization rules as "not exactly a nightmare scenario".

May faces a delicate balancing act, not only in Brussels where she must respond to the EU's demands for more concrete pledges on the so-called divorce bill, but also at home, where some of her lawmakers want her to walk away from the talks.

Upping the pressure on her, Labour's Brexit spokesman Keir Starmer said the party would back Conservatives hoping to amend the EU withdrawal bill, which seeks to 'copy and paste' EU law into British legislation to ensure Britain has functioning laws and the same regulatory framework when it leaves.

Starmer said he wanted six changes to the bill, including parliament getting a final vote on any Brexit deal and a "completely different approach" to the use of the powers the government will have under the legislation, which will not be put before parliament until next month. [nL8N1MT3XX]

"I believe there is a consensus in Parliament for these changes," he wrote in the Sunday Times newspaper.

© Reuters. Britain's International Trade Secretary, Liam Fox, arrives for a meeting in Downing Street in central London

(Adds trade minister in headline)

Latest comments

Long, drawn out and getting rather BORING NOW. The UK has to pay for what they committed to when it comes to the EU budget. The EU has to allow the UK to continue to trade. The borders to the Irish in the UK need to remain open. EUs who have settled in the UK have to be protected, and likewise so does the UK nationals living abroad. None of this is complicated, the complicated part was writing the rules and regs in the beginning and coming to a consensus, everything else from now on just needs a bit of tweaking from the original foundations to allow the UK to leave. All what we are getting is the EU and UK dragging their feet and prolonging the inevitable. It is like having an electric light issue in your bathroom, and a leaky bath drain, what do you fit first? Preferably both asap and in the daylight!
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.