LONDON (Reuters) – Brexit minister David Davis has complained in a letter to the prime minister that Brussels is damaging British pursuits by speaking up the menace to firms if the UK leaves the European Union with no deal.
The letter confirmed that Davis had sought authorized recommendation over whether or not Brussels was breaching Britain’s rights as a member state by advising firms of the chance to buying and selling within the event of a “no deal”. It was first revealed by the Financial Times and confirmed as real by the Brexit division.
“The EU has adopted a number of measures that put agreements or contracts at risk of being terminated in the event of a ‘no deal’ scenario and/or would require UK companies to relocate to another Member State,” the letter mentioned.
An aide from the Department for Exiting the EU confirmed that the letter, dated December 2017, from Davis to Prime Minister Theresa May was real.
“It’s clear there have been a number of instances where the (European Commission), by treating the UK differently despite still being a member of the EU, have not acted in good faith,” the aide mentioned.
“It should be no surprise that if the commission attempt to stoke fears about worst-case scenarios we will correct them and reassure our firms.”
Examples given by Davis included EU businesses advising business that the UK would develop into a 3rd nation when it leaves the EU in March 2019 with out referring to Britain’s purpose to agree a transition interval and future buying and selling deal first.
The recommendation, Davis mentioned, additionally implied firms would should be based mostly within the EU or European Economic Area with a view to keep compliance with regulatory guidelines.
Britain and the EU struck a divorce deal in December that paved the way in which for talks on the long run commerce ties that are prone to show tougher.
May’s government has mentioned it’s making ready for any consequence, together with the possibility that Britain may crash out of the bloc, and has put aside an additional three billion kilos ($four.1 billion)to organize for the transfer.
Europe’s Brexit negotiator Michel Barnier has repeatedly warned no-deal state of affairs would have a harmful influence on individuals, firms and commerce.
British opposition politicians attacked Davis’ stance.
Nicola Sturgeon, Scotland’s first minister, who campaigned to remain within the EU, mentioned the letter was extraordinary.
“A government intent on leaving EU & continually talking about prospect of ‘no deal’ moaning about EU preparing to treat UK as a non member and for the possibility of ‘no deal’. Unbelievable – or rather, increasingly believable from this inept UK government,” she mentioned on Twitter.
Davis mentioned within the letter that authorized and coverage recommendation advised the possibilities of a profitable authorized problem have been slim. He mentioned he had instructed his division to extend its engagement with the Commission – the EU’s govt — and corporations to reassure them.
($1 = zero.7392 kilos)
Reporting by Kate Holton; Editing by Catherine Evans