Sterling opened the week broadly lower after EU chief Brexit negotiator Michel Barnier blasted UK Prime Minister Theresa May’s Chequers plan. And, Barnier “strongly opposed” May’s proposals. On the customs proposals, Barnier said its “not practical”. He added, “it is impossible to tell exactly where a product ends up, on the UK market or in the internal market.” And, “the British proposal would be an invitation to fraud if implemented.”
He also criticized that the “common rulebook” idea as outdated with modern world of trade. He said “the interest of Europeans is to preserve the integrity of the common market. That is our special strength and the reason why we are respected throughout the world, even in the United States.” He added “we have a coherent market for goods, services, capital and people – our own ecosystem that has grown over decades. You cannot play with it by picking pieces.” Therefore, the EU must prevent unfair competition if the United Kingdom has weaker legal requirements than we do. Otherwise we would discriminate and weaken our own companies.”
On the other hand, a UK government spokeswoman defended that the proposal is ” precise, pragmatic and that will work for the UK and the EU.” And, “this proposal achieves a new balance of rights and obligations that fulfils our joint ambition to establish a deep and special partnership once the UK has left the EU while preserving the constitutional integrity of the UK. There is no other proposal that does that.