13-07-2018

Brexit White Paper is like "Ukraine Plus" style

More than two years after the Brexit referendum, the British government has put its ideas for the future relations with the EU into concrete terms in a White Paper.

The British proposal is similar to the "Ukraine plus" model of the cep and provides a solid basis for the coming negotiations. The British approach allows a "soft Brexit" in part because it provides for very close cooperation in trade with physical goods, which is to be made possible by a comprehensive free trade agreement with the EU. London's willingness to accept relevant EU legislation and EU law as interpreted by the ECJ is a turnaround on Britain's previous ideas. London’s position is based on existing cooperation models of non-EU countries such as Norway or Switzerland. However, both Norway and Switzerland make financial contributions to the EU as part of their market access. Both countries would hardly accept it if the UK did not have to make similar payments. Norway, for example, pays € 388 million a year. Projected to UK GDP, the UK would have to contribute €2.5 billion annually. In order to avoid such payments, London will have to distinguish itself from the existing association models. At the same time, the EU will also be interested in a solution that has the least possible impact on the existing models. For this reason, London will probably highlight the differences in its model: the British do not demand market access for services and offer - very discreetly but self-confidently – a cooperation on security and defence policy issues which is relevant to the EU and could at least partially replace cash payments into the EU budget. Norway and Switzerland cannot serve with similar elements.