Hammond Says Brexit Deal ‘Blindingly Obviously’ in EU's Interest
Hammond Says Brexit Deal ‘Blindingly Obviously’ in EU's Interest
(Bloomberg) -- U.K. Chancellor of the Exchequer Philip Hammond denied that Britain is facing a growing risk of crashing out of the European Union without a new trade deal.
“Personally I don’t think so,” he said in an interview with CNBC television in New York on Monday. “I think that you have to look through the rhetoric, you have to look through the process at what the real interests of the parties are, and it is so blindingly obviously in the best interests of both the U.K. and the European Union 27 that we do reach a deal.”
His comments come as Prime Minister Theresa May heads to Brussels for dinner with EU chiefs ahead of a critical summit starting Thursday. Talks between the two sides remain deadlocked, with the EU insisting the terms of divorce must be settled before discussions can move onto trade.
Britain is scheduled to leave the EU in March 2019, with or without a deal, and fears that negotiations could break down sent the pound lower against the dollar on Monday.
Hammond said talks are at a “critical phase,” not at an “impasse,” and that the biggest sticking point is “process,” which he described as a “rather silly thing for us to get hung up on.”
“It’s become apparent that that process isn’t going to facilitate the most effective negotiation, and I think there are people on both sides that say,” he said. “Let’s break out of this, let’s just get round the table and start looking at what the options are to move forward.”
While voicing optimism that an agreement can be reached, Hammond said Britain will be prepared for a cliff-edge departure if it comes to that. Such a scenario would see Britain and the EU slap tariffs on each other’s goods, requiring new customs arrangements at British ports.
To contact the reporters on this story: Andrew Atkinson in London at a.atkinson@bloomberg.net, Eddie Buckle in London at ebuckle@bloomberg.net.
To contact the editors responsible for this story: Flavia Krause-Jackson at fjackson@bloomberg.net, Fergal O'Brien at fobrien@bloomberg.net.