BREXIT (9 Viewers)

"Sanctions! They've only just swallowed their sanctions and now they're burping them back up in your face!"
 
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London battles to keep hold of two main EU agencies

David Davis claims medicine and banking bodies will not have to leave Canary Wharf

Britain is fighting to remain the home of two of the EU’s most prestigious agencies covering medicines and banking after Brexit, in a move that is likely to cause astonishment in European capitals. David Davis, Brexit secretary, does not accept that the two agencies and roughly 1,000 staff will have to move from London’s Canary Wharf, even though the EU is about to run a competition to relocate them. A UK Brexit department spokesman said: “No decisions have been taken about the location of the European Banking Authority or the European Medicines Agency — these will be subject to the exit negotiations.” The government has left open the possibility of keeping part of some EU agencies, at least in the short term, but the idea of the UK hosting key institutions after Brexit is unacceptable in Brussels. “The government will discuss with the EU and member states how best to continue co-operation in the fields of banking and medicines regulation in the best interests of both the UK and the EU,” the spokesman said. Mr Davis may simply be putting the agencies into the wider Brexit negotiation in the expectation that they can be traded for a concession elsewhere; EU officials say there is no question they must move. But Donald Tusk, European Council president, will this month set out the criteria for judging what will be an intensely fought competition over which city will replace London as the host of the agencies. EU leaders are expected to discuss the new base for the agencies at a summit on April 29, where the 27 remaining member states will hammer out their Brexit strategy.

No decision will be made at that point, but Mr Tusk wants to lay the ground rules for deciding which city should host the agencies. Such contests have unleashed fierce national rivalries in the past. In 2001, then Italian prime minister Silvio Berlusconi insisted that a new food standards agency should be based in Parma instead of Helsinki, saying: “The Finns don’t even know what prosciutto is.”

“The EMA and EBA both have to go to a member state,” an EU official said. “There are many interested member states. There is a broad understanding that it is something that you need to move quickly on.” Asked whether there could be a decision by June, the official said: “That would be nice but I doubt it. You do not have to spend long here to know that these decisions are difficult to make.”

The EMA’s Canary Wharf headquarters hosts 36,000 national regulators and scientists each year from across the continent, who come to London to approve drugs for the EU. London’s 890-strong secretariat plays a central role in co-ordinating that work. The EBA, which was set up in 2011, has 159 staff at its London office, also at Canary Wharf. Copenhagen, Amsterdam, Milan, Stockholm, Barcelona and Dublin are all bidding to host the medicines agency and there may eventually be up to 20 applicants. The agency will not only bring highly skilled jobs to its new home but also act as a hub for the pharmaceutical industry and other research.

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May is living in another galaxy, says Brussels
Brexit negotiations began with a blazing row yesterday as Brussels flatly rejected Theresa May’s negotiating position and accused the prime minister of living in a “parallel reality”.

The other 27 EU member states took just four minutes to agree a hardline stance on Brexit at a summit meeting in Brussels before Jean-Claude Juncker, the head of the European Commission, and Michel Barnier, the chief European Union Brexit negotiator, rounded on the prime minister.

They told EU leaders that May had used a meeting with them on Wednesday night to demand that a “detailed outline” of a future free trade deal be in place before the UK agrees to pay any money to Brussels as part of the Brexit divorce deal. An EU diplomat said: “This was a rather incredible demand. It seemed as if it came from a parallel reality.”

Juncker warned yesterday that that approach would lead to an “early crash”, with Britain leaving the EU without a deal.

In an eight-page document outlining their position, the other 27 countries said the EU would “prepare itself to be able to handle the situation if the negotiations were to fail”. The guidelines also include offering Northern Ireland automatic EU membership should it join the Irish republic — a move seen as provocative in London — and giving Spain a veto over Gibraltar’s future relationship with the bloc.

Juncker and Barnier told leaders that the Wednesday dinner at 10 Downing Street had also revealed huge differences over plans to recognise the rights of British citizens and EU nationals in each other’s countries.

Donald Tusk, president of the European Council, said a “serious offer” was needed on migrant rights from the UK before trade talks could begin.

An EU diplomat told The Sunday Times: “The UK’s position is miles apart, both on their financial obligations and on the EU citizens’ rights. The UK government simply wants to create a new category of ‘former EU citizens’ in their migration law, but our position is that we must go much further than that.”

The prime minister’s stance that trade must come first was met with incredulity by EU officials, who said her chief EU sherpa, Oliver Robbins, had already agreed that the methodology for agreeing the Brexit bill would be ironed out first — along with the rights of EU citizens in Britain and the issue of the Irish border.

“She took a firm position against something we thought we had agreed,” a diplomatic source said. “It was completely unreal.” The source said the prime minister’s views on the financial settlement “border on the delusional”.

Over dinner, Juncker slapped down May by pulling out a copy of the EU-Canada trade deal, a 2,000-page document that took nearly a decade to negotiate, and recommended that the prime minister study its complexity.

Juncker’s aides said he then called Angela Merkel, Germany’s chancellor, and complained that May appeared unaware of issues communicated to her staff. According to one of Juncker’s aides, he told Merkel: “It went very badly. She is in a different galaxy. Based on the meeting, no deal is much more likely than finding agreement.”

That prompted Merkel to lambast British “illusions” about Brexit in a speech to her parliament on Thursday. May responded that EU countries were “ganging up” on Britain.

David Davis, the Brexit secretary, last night attacked those who were seeking to undermine the negotiations, calling them “the most complex the UK has faced in our lifetimes”.

He said: “They will be tough and at times even confrontational. There are already people in Europe who oppose these aims and people at home trying to undermine them.”

He insisted: “Both sides are clear — we want these negotiations to be conducted in the spirit of goodwill, sincere co-operation and with the aim of establishing a close partnership between the UK and the EU going forward.”

But strains are already clear between the two sides. Brussels officials expressed incredulity that Nick Timothy, May’s chief of staff, had declined to join the dinner on Wednesday.

A European ambassador who has been briefed on the meeting said: “We don’t know whom to ring. We thought it was Robbins, but it is clear he has been cut out. We have no one to call.”

Tory sources said Timothy and his colleague Fiona Hill had been banned from the dinner by the civil service because they had had to resign their posts to run the general election campaign.

Yesterday, Merkel rejected May’s complaints about the EU’s hardline stance but said the other countries would stick together. “We are not ganging up on Britain, but we are rather making things easier for Britain. We want a strong union of 27 and that is in British interests,” she said.

Juncker was scathing. He said: “I have the impression sometimes that our British friends do underestimate the technical difficulties we have to face. The British want to leave the European Union and it’s not feasible for this do be done quickly. But the dinner was excellent.” He then took a swipe at the Downing Street chefs: “I’m not talking about the food.”

Dominic Raab, a former Tory minister who backed Brexit, said the fierce reaction from Brussels was proof that the EU was on the back foot. “In any negotiation, the side least confident in their position ends up whingeing to the media. It is invariably a sign of insecurity, not strength.

“The prime minister is absolutely right to be firm in private and respectful in any public commentary.”
 
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