EU wants ‘Farage clause’ in Brexit ‘reset’ talks with UK | European Union
The EU is reportedly demanding guarantees that Britain will compensate the bloc if a future government reneges on the Brexit “reset” deal Keir Starmer is currently negotiating.
The termination clause is a stark reminder of the painful and costly divorce, in which the EU set up a massive €5.4bn (£4.7bn) fund to help its member states deal with the disruption caused by Britain’s departure in 2020.
By the way to the Financial TimesThe draft text of a deal on agricultural trade aimed at removing controls on farm produce after Brexit calls for any party withdrawing from the deal to cover the cost of reintroducing border and infrastructure controls in the future.
Dubbed the “Farage clause” by EU diplomats, it is seen in some quarters as a way to ensure the bloc remains out of pocket if the Reform leader wins the general election and carries out his threat to scrap any UK-EU sanitary and phytosanitary (SPS) agreements.
But UK sources rejected the idea, saying such a clause was routine in international agreements and was written “to work both ways” and that the EU could therefore force the UK to pay compensation if it withdraws from the deal in the future.
A Labor source said exit clauses were a key element of any international trade agreement and “to argue that these routine legal contingencies constitute a democratic disgrace”. [was] Frankly, it is tiring.”
Negotiations on the SPS agreement have not yet started but are expected to begin this month. But these could take months to complete as it is one of the most complex issues in the reset package, which also includes a return to Erasmus agreed before Christmas.
An agreement on carbon dioxide emissions of goods exported to the EU has also proven complex. Hopes that Labor could reach an agreement on a carbon border regulation mechanism before Christmas have been dashed.
Anand Menon, the UK’s Director of Changing Europe, said: “We shouldn’t be surprised that the EU is playing hardball. After all, they’ve decided that we need these deals more than they do. So, they’ll take any concessions they can.”
According to the FT, the “Farage clause” states that if one party withdraws from the deal, compensation will include the cost of “installing infrastructure and equipment to establish the necessary border controls, initial recruitment and training” and could run into billions of pounds.
In pricing out the cost of Brexit, the EU has put in place an adjustment reserve of €5.4bn in 2020 to deal with disruptions; Ireland allocated €920 million, while the Netherlands allocated more than €800 million to introduce customs officers, veterinary officers and other controls, unprecedented since the establishment of the single market in 1993.
€672 million was allocated to France, and at least €200 million was spent on deploying customs officers, border police, factory and veterinary inspectors in Calais, Boulogne, Dunkirk, Le Havre and the Channel tunnel; this includes special checks for horses transported to race meetings, which cost Eurotunnel €20 million.
The Netherlands employed more than 900 customs officers and an additional 145 veterinarians for the port of Rotterdam, while Spain hired an additional 860 employees for airports, seaports and border control.
The European Commission and the UK government have been approached for comment.
