Theresa May promises to pay Brussels cash for two more years as part of Brexit transition deal and outlines trade blueprint in landmark speech to break negotiations deadlock
THERESA May this afternoon offered to continue paying Brussels cash for two more years AFTER the Brexit deadline in a bold £20bn bid to unblock talks with the EU.
In a historic speech in Florence this afternoon, the PM outlined a blueprint for a two-year "transitional period" after we officially quit the bloc in March 2019, with access to the single market and customs union to continue on "current terms".
To sweeten the offer, the Prime Minister promised that the UK would continue to pay into the Brussels coffers for that period as part of our divorce bill, to ensure we leave no black hole in the EU budget.
And Mrs May, who was flanked by her cabinet ministers David Davis, Boris Johnson and Philip Hammond, vowed to deliver for the 17 million Brits who opted for us to quit the overbearing bloc last year.
"The British electorate made a choice," she said. "We share a responsibility to make this work."
Boris Johnson, who this week sparked a bitter cabinet war by releasing his own 4,000 word Brexit blueprint, hailed the speech as "positive, optimistic and dynamic".
And Chancellor Philip Hammond said he was sure her "decisive intervention" would break the deadlock and "move relations forward" with the EU.
The PM's speech was welcomed as "constructive" by EU negotiator Michel Barnier, but he warned that the UK team needed to "translate" it into the talks "to make meaningful progress".
But already a number of Brexiteers spoke out to accuse her of a betrayal by effectively agreeing to keep us in the EU for an extra two years - and DELAY Brexit.
Hard-Remainers said she was "kicking the can down the road".
Today Mrs May confirmed:
- A two year transition period beginning on Brexit Day, March 30 2019,
- Throughout the two years, Britain is prepared to pay continuing contributions to fill the huge hole in the EU’s budget from our departure,
- She admitted that many Brits had "never totally felt at home in the European Union".
- On Northern Ireland she ruled out a hard border, saying she “will not accept any physical infrastructure” between the UK and Ireland.
- An "unconditional" promise to help maintain Europe's security in the years to come - and said the UK would sign a treaty with the EU on security co-operation to “promote our common security”.
- She rejected outright a Norwegian model of EU membership - known as an EEA-style arrangement – when the transition period ends in 2021. "We can do so much better than this," she vowed.
- And the PM again confirmed that no deal IS still better than a bad deal, continuing to put pressure on the EU to come to an arrangement.
Describing Britain's vote to leave as a "defining moment in the history of our nation", Mrs May said this afternoon that we would continue to succeed outside the EU.
And she said directly to EU leaders: "We want to be your strongest friend and partner as the EU and UK thrive side by side."
Mrs May vowed again: "We are leaving the EU, but we are not leaving Europe."
And in a move to try and reassure EU citizens living currently in the UK, she vowed: "We want you to stay, we value you, and we value your contribution to our national life...
"I’m clear the guarantee I’m giving on your rights is real."
After months of deadlock in talks about how much money we will give the EU, Mrs May said today that the UK would "honour commitments we have made in our membership".
Mrs May called the deal between Canada and the EU a “breakthrough”, but said she does not want to see the UK’s relationship mirror this.
She said Brussels officials have a "profound responsibility" to make Brexit work and that the "eyes of the world are upon us" to get it right for "the next generations".
On the news of a transitional deal the pound slipped against the dollar - but is now recovering.
But already there are rumblings that the move won't be enough to satisfy some of the more dedicated Brexiteers.
Former Environment Secretary Owen Paterson said that "what worries me is the transition phase" -
saying it would mean the UK could not enjoy the advantages of leaving.
Nigel Farage said her two-year transitional period will mean the UK will be leaving the EU in “name only”.
Tory Brexit campaigner Peter Bone said yesterday his constituents would not accept the agreement.
And Labour leader Jeremy Corbyn said that 15 months after we voted to leave, "the Government is still no clearer about what our long term relationship with the EU will look like."
"Theresa May and her Conservative cabinet colleagues are spending more time negotiating with each other rather than with the EU.”
Even before she stood up to speak, the speech was hijacked by anti-Brexit Remainers who were protesting from the early morning in Florence.
Demonstrators held banners, waved flags and showed off blue-EU painted faces ahead of Mrs May's speech.
What did Theresa May's historic speech on Brexit say?
On a transitional period:
"During the implementation period, people will continue to be able to come and live and work in the UK but there will be a registration system, an essential preparation for the new regime.
“As of today, these considerations point to an implementation period of around two years.";
"Clearly people, businesses and public services should only have to plan for one set of changes in the relationship between the UK and the EU.
“So during the implementation period, access to one anothers markets should continue on current terms and Britain also should continue to take part in existing security measures.
“And I know businesses, in particular, would welcome the certainty this would provide."
On the EU budget:
"I do not want our partners to fear that they will need to pay more or receive less over the remainder of the current budget plan as a result of our decision to leave.
“The UK will honour commitments we have made during the period of our membership.
"And, as we move forwards, we will also want to continue working together in ways that promote the long-term economic development of our continent.
“This includes continuing to take part in those specific policies and programmes which are greatly to the UK and the EU's joint advantage, such as those that promote science, education and culture - and those that promote our mutual security."
On not feeling “at home” in the EU:
"Throughout its membership, the United Kingdom has never totally felt at home being in the European Union.
"And, perhaps because of our history and geography, the European Union never felt to us like an integral part of our national story, in the way it does to so many elsewhere in Europe. It is a matter of choices.
"The profound pooling of sovereignty that is a crucial feature of the European Union permits unprecedentedly deep cooperation which brings benefits but it also means that when countries are in the minority they must sometimes accept decisions they do not want, even affecting domestic matters with no market implications beyond their borders."
On security:
"Our commitment to the defence and indeed the advance of our shared values is undimmed.
“Our determination to defend the stability, security and prosperity of our European neighbours and friends remains steadfast."
“So we are proposing a bold new strategic agreement that provides a comprehensive framework for future security, law enforcement and criminal justice co-operation: a treaty between the UK and the EU.
“This would complement the extensive and mature bi-lateral relationships that we already have with European friends to promote our common security.”
On rejecting other models:
“One way of approaching this question is to put forward a stark and unimaginative choice between two models: either something based on European Economic Area membership; or a traditional Free Trade Agreement, such as that the EU has recently negotiated with Canada.
“I don’t believe either of these options would be best for the UK or best for the European Union.
“European Economic Area membership would mean the UK having to adopt at home - automatically and in their entirety - new EU rules.
“Rules over which, in future, we will have little influence and no vote.
“Such a loss of democratic control could not work for the British people.”
She added: “We can do so much better than this.”
In a positive and lively address calling on the EU to accept her compromise plan, Mrs May said today that Brexit negotiations “will be remembered not for the differences we faced, but for the vision we showed”.
And she added: "If we can be imaginative and creative about the way we establish this new relationship, we can be optimistic about the future we can build for the United Kingdom and for the European Union".
She insisted that "Britain's future is bright" outside the EU and will urge Brussels to help us write a new "chapter of our European history" together.
Aides said the PM chose the Renaissance city of Florence to give her speech to signify her respect for Europe’s world-dominating culture, as well as its history as an ancient city kingdom that got rich from free trade.
She delivered it in the world famous Santa Maria Novella, the city’s first great basilica.
The PM’s big offer also brings together the two bitterly feuding camps among her most senior ministers.
It satisfies the demands of ‘Clean Brexiteers’ lead by Foreign Secretary Boris Johnson and International Trade Secretary Liam Fox for an EU exit that eventually sees Britain regain complete control of its laws, borders and money.
And it also appeases Soft Brexit-backers lead by Chancellor Philip Hammond and Home Secretary Amber Rudd, who have pushed for a long transition over fears a sudden cliff edge exit would spark a business and jobs exodus.
The peace deal was effectively sealed by Boris and Mr Hammond symbolically leaving No10 together yesterday lunchtime, smiling for waiting TV cameras.
The choreographed move – thought up by the Chancellor as an important display of unity – came after a marathon two and a half hour Cabinet meeting in No10 where Mrs May won agreement for her plan from her whole top table, one by one.