EU 'frustrated' at Britain's 'cake and eat it' Brexit approach warns Deutsche Bank expert
THE European Union remains “frustrated” over the UK’s “have the cake and eat it” approach to Brexit, according to one Deutsche Bank strategist.
Bank strategist: Brussels frustrated by UK's Brexit approach
Oliver Harvey, the bank’s UK macro strategist, said there was still not enough “clarity” on the Government’s stance on the EU divorce despite releasing position papers this week.
Speaking to CNBC, the Deutsche Bank head of Brexit research said there was not enough being released by Theresa May's Government on “some of the really big issues”.
He said: “We’ve had these position papers coming out over the last couple of weeks, we have a bit better idea of what the UK Government wants to achieve out of a deal.
Oliver Harvey said the EU was growing "frustrated" with the UK's approach to Brexit
I think the frustration in Brussels is still the UK’s pursuing this ‘have the cake and eat it’ approach
“We know that the UK Government wants to remain in the customs union in all but name during the traditional deal, they don’t say they do but basically that was the outcome of the position paper.
“They also put forward this idea of a third party court to police the transitional agreement.”
Mr Harvey said there had been “some movement” but suggested it was not enough.
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He said: “I think on some of the really big issues, there’s still no clarity, we still don’t know what deal the UK wants to achieve in services and trade – and services is just if not more important than trade and goods.
“We don’t know what immigration deal the UK might strike to secure a transitional agreement and most fundamentally I think, we still don’t have clarity about what the UK wants in its future relationship with the EU27.”
He said Britain’s call for a temporary customs union while signaling it wants to secure trade deals around the world was “frustrating” the bloc.
Mr Harvey said: “I think the frustration in Brussels is still the UK’s pursuing this ‘have the cake and eat it’ approach.”
The comments come as diplomatic sources are reportedly prepared to reject Britain’s proposals for post-Brexit customs arrangements, with one calling the position paper a “fairytale”.
The customs position paper laid out proposals for a transitional arrangement followed by options for a long-term arrangement which would have minimal border checks but still allow the UK to leave the customs union.
This will offer the ability for the UK to secure own trade deals with countries outside of the bloc.
But one official said: “The solution proposed by London on customs and the Irish border sounds like a fairytale."