UK's Hammond: Talks with EU bound to get tough

Economy 6/20/2017, 9:35 AM
UK's Hammond: Talks with EU bound to get tough

The kickoff of Brexit talks was positive but the tone may become harsher, Phillip Hammond warned on Tuesday in a speech in Mansion House. The British chancellor of the Exchequer stressed it is "almost certain" it will need an implementation period after the breakup with the European Union and the departure from the customs union, where current border agreements should be continued. The divorce must be ended with a good trading relationship with the rest of the 28-member bloc, he said and reiterated the strategy is to maintain "strong trade links."

The United Kingdom is committed to free trade and it is "not about to turn inward," but it wants arrangements that work in the country's interest, according to the official. The government of Prime Minister Theresa May seeks to "manage, but not shut down immigration," he said and vowed to keep bringing "the brightest and the best" to underpin productivity, driven by investment.

Hammond said he strives for the financial sector in the UK to remain strong. The authorities will facilitate investments for firms large and small and tap on funding from the European Investment Bank on an equal basis as long as it is an EU member, the chancellor stated. The cabinet seeks to maintain a long-term relationship with it and options are being explored together, but the country must be prepared for an alternative after Brexit, Hammond added.

TeleTrader Newsroom / IT



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