Divorce Bill to Be Paid in Euros After 2020: Brexit Update

Brexit Secretary Says Deal Vote Is Challenging: Brexit Update

(Bloomberg) -- Prime Minister Theresa May is trying to win approval for her Brexit deal ahead of a vote on Dec. 11.

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Key Developments

  • Government releases summary of legal advice on Brexit deal: it doesn’t contain the parts that members of Parliament were keenest to see
  • Negotiator Olly Robbins says the Irish backstop would be uncomfortable
  • Attorney General Geoffrey Cox addresses Parliament later

Hard to Win (3:15 p.m.)

New Brexit Secretary Stephen Barclay said it will be "challenging" to win next week’s key vote on May’s deal, and "everyone recognizes that."

Barclay told the Brexit select committee he’s "confident" the deal can be delivered but many MPs have "already spoken out" about their reasons for opposing it. If May loses the vote, the government "will have to look at the consequences in due course," Barclay said, adding that it could spell no deal, or no Brexit.

"Parliament will have a view on this as well," he said. That last point could be a hint that he expects MPs will want to take over the process and try to direct the government’s next moves in order to prevent a no-deal exit.


U.K. To Pay Long-Term Brexit Bill in Euros (2.30 p.m.)

The section of Cox’s legal summary dealing with the 39 billion pound financial settlement makes no mention of any plan for the U.K. to withhold the cash. Pro-Brexit Tories want May to refuse to hand over the money if the EU doesn’t give Britain a good trade deal in the future.

During the transition period, the U.K. will carry on paying into the EU budget "almost" as if it were still a member, and those payments will be made in pounds. After that period comes to an end, future payments will be made in euros, the document says. The pound has weakened 14 percent against the euro since the referendum.

Britain will also have to appoint auditors to assess whether it’s complying with its obligations to pay what it owes, the document says.

It’s not all one-way traffic. The U.K. will gain a share of certain EU assets, including fines levied, and a share of net assets of the European Coal and Steel Community in liquidation.

Government Releases Summary of Legal Advice (2:25 p.m.)

The government has published a summary of its legal advice, after resisting calls from members of Parliament to release the whole thing. The document is more a summary of what the Brexit deal says than an analysis of the legal implications.

MPs skeptical about May’s Brexit deal want to know whether the Attorney General thinks the U.K. could be left trapped in the controversial Irish backstop indefinitely. The document sets out that the U.K. can extricate itself only by mutual agreement. Any use of the "good faith" clause to get out of it would have to be supported by "clear evidence," the paper says.

MPs are unlikely to be satisfied.



There’s a Lot Irish Backstop Won’t Cover (1.45 p.m.)

May’s Brexit adviser Oliver Robbins set out why the Irish border backstop would be a problem for the U.K. if it ever came into force. It won’t cover security cooperation -- which will be at risk -- or any trade in services, he told Parliament’s Brexit committee.

Robbins also argued the plan -- which is a fall-back guarantee to avoid border checks at the frontier with Ireland -- is not ideal for the EU, either. It’s "uncomfortable" for both sides, he said.

Earlier:

Coming Up:

Government is set to publish a summary of its Brexit legal advice at 2 p.m.
May speaks to Parliament about G-20 at 3:30 p.m.
Attorney General Geoffrey Cox speak after May

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