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U.K. Prime Minister Theresa May stamped her authority on pro-Brexit cabinet rebels on Friday, forcing them to back her plan to keep close trade ties with the European Union after leaving.
Read more about the details of the common Brexit position agreed by Cabinet
The pound rose and the country's main business lobby welcomed the proposal, which came as May warned ministers that if they criticize her policies in future they will lose their jobs.
It was enough to convince outspoken Brexit campaigners including Foreign Secretary Boris Johnson and Brexit Secretary David Davis to get in line.
After more than 12 hours of talks at May's “Chequers” country residence, the Cabinet signed off on a blueprint for the future relationship that Britain will seek to negotiate with the EU.
The meeting, which sprawled over lunch and dinner, produced a plan for a new U.K.-EU “free trade area.” It involves Britain weaving its customs regime around the bloc's rules, and adopting identical regulations for industrial and agri-food goods.
There was no such design for close ties for Britain's huge services sector, and London-based banks were warned they will lose their current levels of access to the EU market. New arrangements will seek to preserve the "mutual benefits of integrated markets.”
“Collective Position”
“Today in detailed discussions the Cabinet has agreed our collective position for the future of our negotiations with the EU,” May said in a statement released by her office, with talks ongoing. “Now we must all move at pace to negotiate our proposal with the EU to deliver the prosperous and secure future all our people deserve.”
After weeks of speculation about Cabinet resignations and leadership plots against her, the deal marks a significant milestone for May and for Brexit. The plan represents a closer relationship to the EU single market than many pro-Brexit campaigners hoped for when May first set out her plans in January last year. But none of the Cabinet's Brexit backers quit.
#Chequers discussion on future to be welcomed. I look forward to White Paper. We will assess proposals to see if they are workable & realistic in view of #EUCO guidelines. Next negotiations w/ #UK on WP, & Withdrawal Agreement, w/c 16 July #Brexit
“Essentially it seems like May won, with some minor throwaway lines to placate the Brexiters,” said Sam Lowe, a senior researcher fellow at the Centre for European Reform.
Euroskeptic lawmakers exchanged complaints on their WhatsApp group, with former Tory leader Iain Duncan Smith saying: "I want to know what the Brexit Cabinet ministers were doing." Another pro-Brexit Conservative lawmaker, Andrew Bridgen, told Bloomberg: “This looks like a weak form of Brexit even before the EU negotiators weaken it further.”
The EU's chief Brexit negotiator Michel Barnier welcomed the discussions on Twitter, saying he looks forward to the so-called White Paper.
