Theresa May (pictured) is gearing up to offer the EU a ‘divorce payment’ worth up to £30billion in a bid to break the deadlock on a post-Brexit trade deal
The Prime Minister is gearing up to offer the EU a ‘divorce payment’ worth up to £30billion in a bid to break the deadlock on a post-Brexit trade deal.
Senior Tories believe Theresa May will use a speech in Florence on Friday to confirm that the UK is willing to continue contributing to the EU budget during a two-year transition period.
A source said the Cabinet was ‘almost unanimous’ in its support for the proposal, with only Boris Johnson arguing for a shorter transition and lower payments.
The Foreign Secretary is said to be unhappy at any deal that would pay Brussels more than £10billion. But the EU has tabled demands for as much as £90billion.
EU leaders have demanded that the UK agree a formula for calculating a final ‘divorce bill’ before negotiations on a future free-trade deal can begin. First Secretary of State Damian Green – one of Mrs May’s allies – yesterday indicated the PM was preparing to make a serious offer this week.
Asked if payments would automatically end when Britain leaves the EU in 2019, Mr Green said: ‘Let’s see.’
He added: ‘I think that the other capitals of Europe, the governments and the commission I hope and expect will welcome what the Prime Minister has to say. I’m not going to reveal any details of it, but because we’ve had these few months of negotiations you know we can see where the key points at issue are and they will be addressed in the Prime Minister’s speech.’
Mr Green said the UK would continue to pay into EU projects, including membership of the Europol crime-fighting organisation. Eurosceptic Cabinet ministers had been initially suspicious of a transitional deal.
A senior Tory source said: ‘Almost everyone now agrees there will have to be a transition and that we will have to pay a fee during it.
EU leaders, including European Commission President Jean-Claude Juncker (pictured) have demanded that the UK agree a formula for calculating a final ‘divorce bill’
‘But Boris seems to be very much against any transition lasting longer than six months and opposed to paying anything for it.’
French president Emmanuel Macron was first to table a proposal for continued payments during a transition, suggesting a minimum of £10billion a year over three years.
A Government source described the proposal as ‘constructive’, and Mrs May is expected to discuss the idea with Mr Macron in New York later this week.
The Government’s legal advice states that the EU has no right to demand any money after the UK leaves in March 2019.
But some ministers, including Chancellor Philip Hammond, argue agreement on the principle could revive the possibility of starting trade negotiations next month.