EU’s position in Brexit negotiations does not make sense, Philip Hammond says

The Chancellor accepted that negotiations could create uncertainty for the British economy
The Independent
Jon Stone Political Correspondent

The EU’s hardline stance against the UK in the upcoming Brexit negotiations “doesn’t make a lot of sense”, the Chancellor has said, as he warned that the talks will bring uncertainty to the British economy



Philip Hammond urged EU countries to “think very carefully about what they want” before hanging Britain out to dry in any post-Brexit settlement.  

EU leaders have repeatedly said the UK will not get trade concessions if does not participate in freedom of movement with the bloc – upholding one of its founding pillars. They have also threatened to withhold so-called “passporting” rights for the City– which would pull the rug out from under the UK’s financial sector.

An EU diplomat said this weekend that watering down that negotiating stance could be “seen to be giving in to a country that is leaving” – and embolden far-right parties on the continent who could do untold damage in the long-run.

Mr Hammond told BBC One’s Andrew Marr Show on Sunday: “This will be a long process. Part of this process will be about the Europeans themselves thinking very carefully about what they want, because some of what I’m hearing from European politicians I understand in terms of political rhetoric, but doesn’t make a lot of sense in terms of economics.”

He said he believed the EU benefited from the City of London’s access to the single market, before adding: “It has to work for Britain and the European Union. This is a negotiation and it’s got to be a win-win outcome.”

Mr Hammond also admitted the negotiations’ outcome would bring uncertainty for the British economy.

“You’ve seen the range of independent forecasts that are out there and many of those forecasts are pointing to a slowing of economic growth next year and a sharp challenge to the public finances. There are a range of reasons for that,” he said.

“As we go into a period where there will be some certainty around the negotiations.”

Despite the warning that uncertainty could damage economic prospects Mr Hammond resisted calls on the programme to actually reveal the Government’s starting position, aims or approach to Brexit, saying only in unhelpful relative terms that he wanted the “best deal” or “the best access”.

The complete transparency blackout from No 10 and the Government in general has led to accusations that the Government is in fact dreadfully split on the issue and does not in fact have a plan to disclose.

Mr Hammond, who is understood to favour a more cautious approach to Brexit, tacitly acknowledged the suggestions of a split but downplayed their significance.

“I think you’d be surprised by the degree to which the Cabinet is coming together around a view of the challenges and the opportunities as we move this debate forward,” he said.