UK: PM May soothed concerns that the government has no idea what it is doing - Rabobank

Research Team at Rabobank, notes that the Prime Minister Theresa May ultimately did give a long-awaited speech (you can find it here) in which she outlined the UK’s main objectives for the negotiations ahead.

Key Quotes

“The speech contained no major surprises, as parts of it were already given to the press the days before, yet it soothed concerns that the government has no idea what it is doing.”

“There were a number of interesting points. First of all, the government will give both Houses of Parliament a final say on the deal, but this is set to be a “choice” between either a Brexit on the government’s terms or a Brexit with no deal at all. Secondly, May doesn’t want a half-baked compromise that leaves the UK half-in, half-out (e.g. the Norway model). This also means that she doesn’t want full membership of a custom union with a common tariff border, as such prohibits the UK of making free-trade arrangement with other non-EU countries. Instead she wants the UK to have a new customs agreement and/or a bold free trade agreement with the EU. Thirdly, the government is aiming for a phased approach to deliver a smooth Brexit that would give businesses more time to adjust the new relationship.” 

“Across the channel, European leaders also welcomed the speech for providing clarity. Donald Tusk lived up to his first name and tweeted: “Sad process, surrealistic times, but at least more realistic announcement on Brexit. EU 27 united and ready to negotiate after Art.50.” We now indeed know what the government’s top priorities are, but ultimately it is what it achieves in those talks what matters. There’s nothing that says the government’s objectives will be achieved by the end of the negotiations. Where’s the give for all the take? Does May really think the UK can have their cake and eat it, or is this just a very bold first move? As the Stones mused: You can’t always get what you want.”