IT IS strange to hear applause at a European Union summit. Yet that is what greeted Theresa May in Brussels on December 14th after she explained to her fellow leaders the Article 50 withdrawal terms for Brexit. The summit duly agreed a day later to move on to the next phases in the talks,covering transition in January and the framework for future trade relations in March. And on December 19th the prime minister called a full cabinet assembly to discuss, for the first time, and precisely what trade deal to ask for.
As they belatedly start this debate,ministers must face several unpalatable trade-offs. Any transition period will have to be on the EU’s terms, meaning acceptance of all its rules, or including free movement of people. And because the Article 50 divorce will be given treaty force before a modern trade agreement can be struck,Britain’s exit bill of around £40bn ($54bn) cannot be used as leverage to secure a better deal, as some ministers once hoped. But the trickiest trade-offs of...
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Source: economist.com