Brexit: Negotiations and No-deal Contingency Planning

Lord Howell of Guildford Excerpts

Tuesday 4th September 2018 Lords Chamber

[Lord Callanan]

I do not think that the noble Baroness’s analysis is correct. The European Economic Area is an agreement between EFTA countries and EU member states, and our membership of it will lapse when we leave the European Union. In order to join the European Economic Area we would have to become a member of EFTA, we would require the agreement of the EFTA countries and we would then need the agreement of the European Union in order to continue in that membership. That presents a number of legal and practical difficulties—but I would be happy to write to the noble Baroness in more detail about how it might not work.

[Lord Howell of Guildford (Con)]

Does my noble friend feel that the point has been put sufficiently strongly to the Brussels establishment and the Commission that the Chequers plan is already a compromise and is a compromise of compromises? That does not seem to have penetrated, judging by some of the comments from the Brussels Commission. Does my noble friend also feel that the Brussels Commission understands that a great many of the fundamental principles to which it refers have already been modified throughout the European Union, particularly in relation to labour movement, frontier controls, airport entry controls and the movement of services where there is no single market? Have those points got over to the people we are dealing with in Brussels?

[Lord Callanan]

Of course we are dealing with a lot of different interlocutors as well as the official EU negotiating team, represented by Michel Barnier, and the Article 50 working group. We are also liaising with individual member states. It is fair to say that there is a variety of opinions. We think that we have set out a compromise. It was obtained at some difficult political cost, but it offers a way forward. A number of member states and individuals in the EU have commented that it offers a workable and viable way forward and they look forward to engaging on it. Of course, it is a negotiation. There have been various noises off, but we still await the official Commission response. Senior members of the task force have made it clear that they think it offers a viable discussion and way forward.