Brexit News & Discussion v6: EU Leaders Go to Battle Over Plugging Post-Brexit Budget Gap

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UK 'front of the line' for free-trade deal, says US treasury secretary
Steven Mnuchin said the US was "very supportive of the UK over the Brexit issue" and wanted to see a successful transition.
By Adam Parsons, Business Correspondent in Davos, Switzerland | Thursday 25 January 2018

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The UK will be "at the front of the line" when it comes to negotiating to a free-trade agreement with the United States.

That was the promise from treasury secretary Steve Mnuchin, the man in charge of overseeing the US economy.

Speaking in Davos, he said President Trump was "clear" that Britain would be "at the front of the line, and not at the back of the line" when negotiations started.

Asked about the relationship between Britain and America, Mr Mnuchin said: "I think we have had a very special relationship for a long period of time. We are very clearly supportive of the UK over the Brexit issue.

"We are monitoring discussions with the European Union and we want to see a successful transition.

"There will be certain restrictions to deal with, but as soon as the UK is ready, then we would be prepared to negotiate an attractive trade deal."

The comments contrast with Barack Obama's warning before the Brexit vote in 2016 that the UK would be at the "back of the queue" for a trade deal if it voted to leave the EU.

Mr Mnuchin had a meeting with the Bank of England governor Mark Carney on Wednesday and is also set to hold talks with Chancellor Philip Hammond during his visit to Davos.

Mr Mnuchin's words were echoed by the US commerce secretary Wilbur Ross, who said he had spent time in Davos with Liam Fox, Britain's International Trade Secretary, and was "encouraged" by their conversation.

The pair talked about Mr Fox's plan to put a "commercial officer" into British embassies to promote trade - an idea that Mr Ross said the Americans had been using for decades.

The comments came ahead of Mr Trump's private talks with Theresa May, due to take place on Thursday afternoon, where the question of a future trade deal looked likely to arise.

On Wednesday, former PM Tony Blair told Sky News that Brexit meant the UK's relationship with America would become ever more crucial, and that the UK could become "even dependent" on the US.

President Trump is the first American president to come to the World Economic Forum since Bill Clinton 18 years ago. He will deliver the final keynote speech on Friday lunchtime.

https://news.sky.com/story/uk-front...rade-deal-says-us-treasury-secretary-11221781
 
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So, it appears that the crusty old euro skeptic that won in czechoslovakia is considering a referendum on whether to bounce from the EU or not. Now we just need a couple more...
 
Ever wondered what happens to the rich Brexit proponents?

Wonder no more: they secure EU citizenship for themselves and their families. As always, others will have to shoulder the burden.


https://www.timesofmalta.com/mobile...-supporter-obtains-maltese-passport-ft.669224

Yeah Brexit was done for your average Brit to take back the power.
Secret data show Britain worse off under all Brexit scenarios
https://www.ft.com/content/b3d35136-0543-11e8-9650-9c0ad2d7c5b5
 

Sorry could be the IP location I can just open it.

Anyway let me paste it in case you are interested:

Britain will be left worse off under all Brexit scenarios, with financial services, chemicals, clothing, manufacturing, food and drink, cars and retailing among the sectors worst hit, according to secret government analysis.

Cabinet ministers are being privately briefed this week on updated economic analysis of the impact of Brexit and the results, closely guarded in Whitehall, will strengthen the hand of “soft Brexiters”, including chancellor Philip Hammond.

The paper, EU Exit Analysis — Cross Whitehall Briefing, is dated January 2018, and looks at three of the most plausible Brexit scenarios based on existing EU arrangements.

The document, obtained by BuzzFeed, suggests that a “no deal” scenario, which would see the UK revert to World Trade Organization (WTO) rules, would reduce growth by 8 per cent over the next 15 years.

It says that under a comprehensive free trade agreement with the EU, UK growth would be 5 per cent lower over the same period compared with current forecasts.

The softest Brexit option of continued Norway-style single market access through membership of the European Economic Area, an option ruled out by Theresa May, would in the longer term still lower growth by 2 per cent.

The forecasts, produced by economists working across Whitehall departments, suggest that Britain would suffer a less dramatic hit than those produced by the Treasury ahead of the 2016 EU referendum.

Under those calculations, dubbed “Project Fear” by the Leave campaign, the WTO option was forecast to cost 7.5 per cent of growth over 15 years, an FTA 6.2 per cent and a Norway-style single market deal 3.8 per cent.

Under the new modelling assumptions, a trade deal with the US is concluded in all the scenarios, offsetting lost trade with the EU when Britain leaves the single market and customs union.

The study, which the government is refusing to publish on the grounds that it would undermine Britain’s negotiating position, confirms that remaining in the single market would cause least economic damage.

Mrs May is hoping to negotiate a deal somewhere between a traditional free-trade agreement and a Norway-style single market deal and there is no modelling for this undefined outcome.

However, the government analysis suggests a hit of between 2 per cent and 5 per cent on growth over the next 15 years, depending on whether Britain ends up a closer to a single market deal or a Canada-style trade agreement.

Meanwhile, every UK region would also be affected negatively in all the modelled scenarios, with the north-east, the West Midlands and Northern Ireland facing the biggest falls in economic performance.

The paper, which is being shown to ministers individually over the course of the next two weeks, also acknowledges the risk to London’s status as a financial centre; the EU says the City will not be covered by any free-trade agreement.

Ministers have been told they will not be able to take copies of the briefing out of the room, so the leak of the slides on Monday night will be hugely embarrassing to the government.

It is also likely to see Labour demand full publication of the study. The Department for Exiting the EU said last night that it would not be published because it was “advice to ministers” and that revelation of the information would harm Britain’s negotiating position.

According to BuzzFeed, the analysis assumes in all scenarios that a trade deal with the US will be concluded, and that it would benefit gross domestic product by about 0.2 per cent in the long term.

Trade deals with other non-EU countries and blocs, such as China, India, Australia, the Gulf countries and the nations of South East Asia, would add, in total, up to 0.4 per cent to GDP over the long term. The Brexit department did not dispute the veracity of the leak.

A government spokesman said: “We have been clear that we are not prepared to provide a running commentary on any aspect of this ongoing internal work and that ministers have a duty not to publish anything that could risk exposing our negotiation position.”
 


Now we know why Davis said he had Brexit assessments done and then refused to acknowledge they existed 2 weeks later.
 
EU to consider plastic tax to plug gap in post-Brexit budget
10 January 2018

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The EU could adopt a tax on plastic packaging to reduce waste and to plug the gap in its budget left by Brexit.

The European Commission - the EU executive - will consider whether the tax should be levied when the packaging is produced, used or disposed of, the budget commissioner says.

It will also analyse whether there should be exemptions for packaging that is necessary for hygiene or safety.

The ideas were floated in talks about the next budget period from 2020-2026.

What impact will Brexit have on the EU budget?

The EU budget is paid for by the 28 member countries.

It is estimated the UK's departure will leave a permanent hole in the budget of some €12-13bn (£11-12bn; $14-$16bn) per year.

The annual EU budget is around €155bn (in 2016), or about 1% of the bloc's economy.

The UK is one of 10 member states who pay more into the EU budget than they get out. Only France and Germany contribute more.

Why is the tax being proposed?

Budget Commissioner Günther Oettinger said the gap would have to be closed with 50% spending cuts - which could affect some major programmes - and 50% fresh money.

Western states, net contributors, do not want to give more money while poorer, former communist eastern countries say they should not suffer cuts in the subsidies they get.

he tax on plastic packaging has been suggested as one source of new money. Mr Oettinger said it could also help reduce the quantity of plastic used in Europe.

No estimates of how much the tax could raise have been given.

Mr Oettinger also proposed that the EU should receive the income from the Emissions Trading Scheme, which aims to curb global warming and currently goes to member states.

Mario Centeno, chair of the Eurogroup - the group of eurozone finance ministers - said corporate taxation, value-added tax, energy and transport taxes were other possible means of extra funding, Reuters news agency reports.

What happens next?

The Commission will make a proposal in May which will be considered by EU leaders and the European Parliament. It has called for an agreement on the budget by May 2019.

The UK is set to leave the bloc on 29 March 2019.

http://www.bbc.com/news/world-europe-42634457
 




Someone needs to stick these numbers on the side of a bus.
 
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