EU Economics

AT LAST! EU admits it ‘NEEDS’ UK trade deal to grow strongly post-Brexit

BRUSSELS finance chiefs have issued a glowing forecast for the bloc’s future – before making the shock admission it ALL relies on free trade terms with Britain post-Brexit.

David davis GETTY

The bloc is basing its financial projections for 2019 on “status quo” terms with the UK

The European Commission issued its report for the coming years boasts of its economy growing at the “fastest pace this decade” with GDP set to increase by more than two per cent.But buried within the optimistic document the commission makes a startling admission on Brexit, that the bloc is basing its financial projections for 2019 on “status quo” terms with the UK.

EU report

While the report insists this is a “purely technical assumption” the revelation stands out on the back of Brussels refusing to talk future trade terms with BritainThe UK imported £302 billion worth of goods and services from the EU last year, £60 billion more than it exported.

The EU has repeatedly insisted it will not discuss future relations with Britain, including trade and any transitional deal, until “sufficient progress” is made on the Brexit bill, along with the issues of the Irish border and citizens’ rights.

But this week’s financial report from Brussels echoes calls last month from Mr Barnier, where he said he was focused on a transitional deal.He again called for the “status quo” when he said: “We don’t have time to invent a new model.

UK businessesGETTY

UK businesses want a transitional deal put in place

“So for a short time after the formal exit from the EU the economic status quo would continue to apply, which besides the internal market also includes the customs union and collective political decisions.”The Commission forecast said the euro area economy will continue to grow at its fastest pace with real GDP growth forecast at 2.2 per cent.

Crucially, the report states: “Our projections for 2019 are based on…a status quo in terms of trading relations between the EU27 and the UK.”

Theresa May GETTY

May is hoping for trade talks to start as soon as possible

EC finance chief Valdis Dombrovskis said: “The EU economy is performing well overall. Economic growth and job creation are robust, investment is picking up and government deficit and debt are gradually decreasing.“There are also signs of a resumption of a process of convergence in real incomes.”

The latest EC paper comes as the US’s Secretary of Commerce Wilbur Ross has told Mrs May not to align herself too closely with the EU post-Brexit as Britain could lose out on a free trade deal with the US.

His comments have suggested the UK could have to pick sides between the two trade superpowers with differing demands.Mrs May is hoping for talks regarding trade to commence during the December summit.

However, it is likely that the Prime Minster needs to make an offer on the divorce bill before trade deals can start.

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More Brussels bull, come Monday they will be saying the exact opposite.
They cannot be trusted at all.

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