Brexit - a sneak preview of what May will say

By Catherine Hardy with Reuters

Published on 17/01/2017 - 08:26

The UK prime minister is giving a hotly-anticipated speech in London to set out 12 priorities for the upcoming Brexit negotiations.

Prime Minister Theresa May says the UK will not seek a Brexit deal that leaves it “half-in, half-out” of the EU.

May is seting out 12 priorities for the upcoming Brexit negotiations in a hotly-anticipated speech in London.

Today the PM will set out her agenda for Global Britain and vision for a new strategic partnership with Europe pic.twitter.com/SLF6Kcjdo2
— UK Prime Minister (@Number10gov) January 17, 2017

What are her priorities?

Extracts of the speech were released to the media in advance.

They did not set out explicit details of what the 12 priorities would be.

However, media reports suggest they are also likely to include the future trading relationship she wants to have with the EU, removing Britain from the jurisdiction of the European Court of Justice, as well as leaving the EU’s single market and regaining full control of the UK’s borders.

In 6 – what May will say

“We seek a new and equal partnership, between an independent, self-governing, global Britain and our friends and allies in the EU.”

“Not partial membership of the European Union, associate membership of the European Union or anything that leaves us half-in, half-out.”

“We do not seek to adopt a model already enjoyed by other countries.”

“We do not seek to hold on to bits of membership as we leave.”

“We will continue to be reliable partners, willing allies and close friends.”

“We want to buy your goods and sell you ours, trade with you as freely as possible and work with one another to make sure we are all safer, more secure and more prosperous through continued friendship.”

What the EU will say

The EU is likely to insist on freedom of movement for EU citizens, in return for full access to the single market.

This creates a conflict.

Many UK citizens who voted to leave the EU in last June’s referendum did so precisely in order to be able to restrict immigration.

'I'm not going to comment on extracts'. That's a new one from the European Commission #Brexit
— Danny Kemp (@dannyctkemp) January 17, 2017

Sterling falls sharply

Sterling fell sharply on Monday ahead of May’s speech.

Market analysts are nervous about the prospect of a move away from preferential EU single market access and a hardening stance towards an economic bloc that accounts for roughly half of Britain’s imports and exports.

“We have taken back all of the move from yesterday morning,” said Richard Benson, co-head of portfolio investment with London currency fund Millennium Global, “the speech has been so well telegraphed that I think people (betting against sterling) realise that is dangerous.”