Courtesy of Mish.
I do not understand the optimism in some corners that a deal will be reached. Events in the last two days should open some eyes to the large and increasing chance there simply is no deal.
The Wall Street Journal reports European Parliament Votes to Toughen Stance on Brexit.
Highlights
- By a 516-183 margin, the European Parliament voted to tighten Brexit discussion rules.
- On the disputed divorce bill, which EU officials expect to reach €60 billion ($64 billion), European politicians said it should cover not just all commitments made by the U.K. during its time as an EU member, but also so-called off-balance sheet items. These items would include, for example, the U.K.’s share of any losses made by the European Investment Bank during the U.K.’s time as a shareholder.
- Parliament also warned the U.K. not to pursue any bilateral deals with EU countries or nations outside the bloc for as long as Britain remained a member.
- The parliament also said the U.K. shouldn’t use cooperation in security and defense as a bargaining chip for trade relations.
- The UK must heed the jurisdiction of the European Court of Justice (Financial Times).
Statement by Michel Barnier
“We are not proposing this to be tactical or to create difficulties. It is an essential condition to maximize our chances of reach an agreement together in two years” said Michel Barnier, the European Commission’s chief negotiator.
Michel Barnier Translated
“We are taking this tough stance as a tactical measure to create difficulties, to punish the UK and to give warning to others not to leave.”
To that end, the EU acts like a Mafia or gang enforcer. Once in, don’t try to leave.
