Cable Sinks As EU-UK Postpone Next Round Of Brexit Talks

Tyler Durden's picture

Having spiked overnight on the back of surging inflation, Cable just tumbled after it appears disagreements over the 'divorce' payments forced EU and UK to postpone the next round of Brexit talks... for a cooling off period?

As we detailed previously, the EU is accusing UK of backtracking on its promise to pay an exorbitant fee to leave the union.

EU negotiators were said to have been left “flabbergasted” after British lawmakers told them there was little or no legal basis for their £90billion claim. A young civil servant reportedly left EU negotiators “open-mouthed” with a line-by-line “technical” demolition of the demand.

 

Tory grandee John Redwood said last night that there was no legal basis for the demand. He also said Mr Davis had no right to authorise it without parliamentary approval.

 

“Article 50 is clear,” he said. “Once a state leaves it has no further rights and benefits, and no further duties or obligations. It is of course true the treaty does not prevent the EU accepting a payment volunteered by a departing state if it wished to pay one. However, the UK could not make such a payment legally under our own law and system for controlling public spending.”

 

The former Welsh secretary, who voted for Brexit, said ministers have “absolutely no authority to make one-off additional payments to the EU. The only way Mr. Davis could authorize a leaving payment would be to put through an Act of Parliament specifically authorizing such an ex gratia payment. I can’t see many Conservative MPs wanting to vote for that.”

 

Eurosceptics on both sides of the house said MPs were likely to vote down any demand deemed “excessive” – even those who had voted Remain.

 

Mr Rees-Mogg said: “Almost certainly there will have to be a vote. The money has to be voted through by Parliament and with MPs facing the fury of voters, it cannot be too much money.”

 

Fellow Brexiteer and Tory MP Andrew Bridgen said: “Any deal will have to go through Parliament and if its seen in any way excessive then it won’t go through.”

 

Referring to an ICM poll which found that two-thirds of voters would find paying anything over £10 billion “unacceptable”, he added: “That polling data gives you a ballpark figure of what the British public would find acceptable. We buy more from the EU than we sell, we aren’t charging them for access to our market so what possible reason would they have to charge us for access to theirs unless they want to cost Europeans their livelihoods?

 

“The British public won’t accept a punishment payment. No MP in their right mind would vote for that, whether they are Brexiteers or Remainers. The EU is talking about multi-billion pound payments in line with the entire NHS budget. The electorate won’t stand for it.”

 

Labour MP Kate Hoey, who also voted Leave, agreed. She said: “If you give up your membership of a leisure or social club, you don’t have to carry on paying for the staff pensions after you’ve left.”

It appears that has pushed the negotiators to delay proceedings...

 

Of course this is not exactly new news. Last week, European Parliament's Brexit representative Guy Verhofstadt already highlighted this risk.

“Possibly the next round of negotiation will be the last week of September, not the third week of September.”

 

Verhofstadt explained on September 4, “Apparently there will be an important intervention by the British prime minister in the coming days, foreseen on September 21, and then it’s a little bit stupid that there is this mixed with the negotiation round.”

This has been confirmed by the Bloomberg report, which suggests that the next round will only be delayed by a week (from September 18 to 25).

We would expect cable to bounce back.

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RagaMuffin's picture

Must confess to schizophrenia on this one. The Brits colonized the US with indentured servitude and are getting a "taste" now. Can't stand the EU...........

Silvery Dan's picture

Headline from news story in 2100:  "EU-UK Postpone Next Round Of Brexit Talks"

Déjà view's picture

Nearly 100 years for Inexit...

Taken with a grain of salt...

toady's picture

I don't know why they just don't walk away.... this is like paying Mexico after nafta breaks up.... just stupid!

New_Meat's picture

Q: "Why is divorce so expensive?"

A: "Because it is worth it!"

Of course, if it doesn't cost too much ...

philipat's picture

Agreed, just walk away with the middle finger in the air. What can Brussels do; there is no legal basis for such extortion and the UK can live with WTO tariffs, especially as it exports less to the EU than vice versa. I share your distaste for the arrogant and childish behaviour of the unelected Brussels "Elites" (EuroPrats).            

Sid James's picture

What language would America be speaking now if the British hadn't landed at Jamestown?

frenzic's picture

the part that matters (wallstreet) would speak dutch

philipat's picture

If it had not been for the British influence on American society in general, I suspect you might very well be speaking German?

Doom and Dust's picture

Cable sinks because traders think the BoE might get serious seeing 2.7% core inflation, and RPI at 3.9%

The BoE won't raise rates - too costly. So, just a deep breath before friday's drop. Sterling shorts FTW.

Rip van Wrinkle's picture

The BoE raises rates by any meaningful measure....bust ensues.

BritBob's picture

 The Crazy EU

MEPs and legal experts have claimed the veto over the territory’s future after Brexit would give Spain special status among EU nation, when they should be on an equal level. 

The EU’s Brexit negotiating guidelines stated that the Brexit deal will not apply to Gibraltar without an “agreement between the kingdom of Spain and the UK”.

Experts have told the Telegraph that the veto could be illegal under EU law. 

Spain's Gibraltar claim has NO legitimacy and YES would be illegal. Google: ''Gibraltar – Some Relevant International Law'' (1 page) to find out why.

The Spanish claim to Gibraltar has no legitimacy.

Gibraltar - Some Relevant International Law (single page) : https://www.academia.edu/10575180/Gibraltar_-_Some_Relevant_Internationa...

 

webmatex's picture

Spain renounced that demand months ago...

liqmyace's picture

Send the new aircraft carrier and park it up in the bay of Gibraltar...

quasi_verbatim's picture

Sink it at Gib and grass the flight deck for cricket.

Mimir's picture

"The money has to be voted through by Parliament and with MPs facing the fury of voters, it cannot be too much money.”

 

Even the European Union agrees that such "money" has to be voted through by the national Parliaments, However the EU points at the fact, that the UK Parliament has already voted and financially engaged the UK in earlier votings. 

Here is the legal text from the Commission's Position paper "Essential Principles on Financial Settlement" (12 June 2017)

1. Calculation of the Union obligations.

The Union obligations stem from: 

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  • "(1)  The Reste à Liquider ("RAL") from the successive Multiannual Financial Frameworks during which the United Kingdom was a member of the Union; 
  • (2)  The financial programming for the period between the date of withdrawal of the United Kingdom and the end of the MFF 2014-2020; 
  • (3)  The liabilities as recorded in the consolidated accounts of the Union which are not balanced by corresponding assets, i.e.: 
    1. Pensions and other employee benefits, 
    2. Provisions, 
    3. Financial liabilities not related to borrowings, 
    4. Payables and accrued charges  other than RAL. 
  • (4)  The contingent liabilities disclosed in the consolidated annual accounts; 
  • (5)  The specific costs related to the withdrawal process."

 

There is no "fee", neither a "fine", for leaving the EU unless you get your information from fake news in  Daily Express, Daily Mail or Daily Telegraph or the like. It is all just a question of respecting UK's engagements. 

smacker's picture

"The Union obligations stem from: 

li.li1 {margin: 0.0px 0.0px 12.0px 0.0px; line-height: 18.0px; font: 14.7px Calibri; color: #000000; -webkit-text-stroke: #000000} li.li2 {margin: 0.0px 0.0px 14.7px 0.0px; line-height: 18.0px; font: 14.7px Calibri; color: #000000; -webkit-text-stroke: #000000} span.s1 {-webkit-text-stroke: 0px #000000} span.s2 {font-kerning: none} span.s3 {font: 9.3px Calibri; vertical-align: 6.5px; font-kerning: none} span.s4 {font: 12.0px Times; font-kerning: none} ol.ol1 {list-style-type: lower-latin} ul.ul1 {list-style-type: none}"

 

Is that really the EU Commission's position paper?

I bet Junkett wrote it when he was drunk. Right?

Sid James's picture

A cooling off period is a good idea. About two years should do it.

smacker's picture

"Referring to an ICM poll which found that two-thirds of voters would find paying anything over £10 billion “unacceptable”."

Even a £10 billion contribution should be tied to other agreements in our favour, like on trade.

hooligan2009's picture

that dip in cable is a brain fart from an HSBC like fx algo - hardly worth the mention

apologies for the duplicate from another thread, but it needs repeating how blatantly inept the UK palriament has been for decades - made up of leaders in stupidity, not thrift..

from another thread.

the UK has paid a net quarter of a trillion pounds into the EU coffers - that's net

https://fullfact.org/europe/our-eu-membership-fee-55-million/

it is still paying around 1 billion a month for membership of a club that is trying to shit on it.

tungsten exit NOW, tell the EU to come up with how much IT WILL PAY THE UK FOR ACCESS TO THE UK'S ACCESS TO GLOBAL MARKETS.

FUCK THE EU AND THE (BROKEN DOWN) HORSE IT RODE IN ON.

just a reminder to libtard socialists encouraging immigration and "negotiations" with the similarly bankrupt libtard socialists in europe, from the mediterranean to scandinavia, here is a debt clock for the UK showing 1.7 trillion of debt accruing to the fucked up politics that is libtard socialism

http://www.nationaldebtclocks.org/debtclock/unitedkingdom

http://countryeconomy.com/gdp/uk

contributions to the EU account for 15% of that 1.7 trillion equal to one in seven pounds of the national debt.

the bankrupt UK is also spending 0.7% of gdp on "overseas aid" 15 billion pounds a year on overseas aid whilst keeping legal and illegal immigrants in poverty, out of work, in poor housing and unable to even speak english or pass basic GSCE's in any topic in the UK

the uk had been spending around 0.4% of gdp on aid in the three decades prior to the 2013 level of 0.7%. that works out at 24% of gdp prior to 2013 and another 3% in the last four years - or to put it another way, the UK has pissed away 400 billion on international aid over the last forty years.

put those two amounts together, 400 billion plus 250 billion AND IT WORKS OUT THAT ONE THIRD OF THE UK'S NATIONAL DEBT HAS BEEN PISSED AWAY ON THE EU AND OVERSEAS AID

http://www.telegraph.co.uk/news/politics/conservative/11199866/British-a...

what this parliament fails to grasp is that brits want the UK out of europe and all the voters see parliament as fit for is to administer/manage the exit - then votes can be counted on what needs fixing - nobody wants a "negotiated settlement" with brussels - they want out of europe TODAY.

JPMorgan's picture

The UK should just exit hard and fall back to WTO guidelines.

As I doubt consensus can ever be reached between the UK and EU on the amount of the divorce settlement.

 

 

 

Rebelrebel7's picture

It is particularly outrageous that the EU believes that they are entitled to any payment whatsoever since UK exports declined to the EU AND EU imports increased to the UK during the U.K. 's participation in the elevate Germany orgy!

http://www.telegraph.co.uk/finance/economics/11700443/The-EUs-dwindling-...