European Union President Donald Tusk will yesterday finally unveil negotiating guidelines for the future relationship with Britain which warn London it can not have completely free trade after Brexit.
EU Council president Donald Tusk's draft guidelines were seen as Brussels' bid to turn the screw on the PM to soften her Brexit red lines.
However, even if the United Kingdom were to accept concessions such as observer-only status to the EMA, renouncing the United Kingdom parliament's privilege to reject EU pharmaceutical laws, and agreeing to the jurisdiction of the European Court of Justice in all EMA matters, it remains to be seen if the EU is able to agree to extend access to the EU pharma regulatory system to a country that will not be part of the single market.
Speaking to an audience at HSBC's headquarters in London on Wednesday, the chancellor of the exchequer said the UK's financial services industry was crucial to negotiations, describing it is an asset to Europe not just the UK.
"We need a government that pays a little less time to the rentiers and speculators and more time for those who work in and out of businesses and run companies". In no aspect of anybody's life has this ever been true (as a moment's personal reflection will confirm), yet it was swallowed by enough of the electorate for the advisory poll to call for Brexit. We are not going to sacrifice these principles.
"In the free trade agreement we can offer trade in goods, with the aim of covering all sectors, subject to zero tariffs and no quantitative restrictions".
The EU Council president put forward draft negotiation guidelines today that limits the options for a future relationship to a free trade deal only.
Essentially, there are no prospects for a viable solution to the Irish border conundrum unless Theresa May is willing to move on the Tories' hard Brexit position, or on the implementation of physical infrastructure to check goods between the Republic and the UK.
The EU allows access to foreign financial firms if it deems their domestic rules to be "equivalent" or as robust as the bloc's own regulation.
He added: "A pick and mix approach for a non-member state is out of the question. But it will only be a trade agreement", Tusk said.
While the European Union says it does not want to mete out punishment to Britain, the trade deal offer will come as another blow to Britain. And, if necessary, to protect Europeans against trade turbulence, including by proportionate responses in accordance with the WTO. Once again, however, he said that the European Union cannot grant Britain the rights of Norway and Canada in its trade relations. But, given her stubborn record throughout these negotiations, and the fact she is essentially in hock to a hard-line group of Brexiteers (ERG) in her own party due in part to her intolerably precarious personal position after managing to lose the Tories' majority, it's nearly certain she won't budge an inch.