European diplomats are increasingly convinced the UK will sever economic ties with the continent when it leaves the European Union, as hopes of a special partnership languish. As the European commission’s chief Brexit negotiator, Michel Barnier, prepares to start work on Saturday, the dominant mood among senior diplomats is that the UK is on the path to “hard Brexit”, namely giving up membership of the EU single market, as well as the customs union that allows free circulation of goods. Under this clean-break scenario, London-based banks would lose the passports that allow them to operate across the continent, while Britain’s trade would be governed by a new agreement yet to be defined.
UK heading for hard Brexit, say European diplomats | Politics | The Guardian
But here is a useful compromise, as hard Brexit is going to have very big consequences on the UK economy..
The Belgian economist has written a paper with four influential European policymakers calling for “a continental partnership” that would allow Britain to remain part of the single market without having to accept complete free movement of people. The price of access to an outer EU tier would be contributing to the EU budget and following EU regulations. The paper has caused consternation in Paris, Berlin and Brussels. One senior source described it as “the full cherry-picking approach” and “politically, a non-starter”. British Eurosceptics would also object to paying into the EU budget and accepting the writ of the European court of justice.
UK heading for hard Brexit, say European diplomats | Politics | The Guardian