-May's leadership in question as Brexit negotiations stall
Despite the U.K. Prime Minister Theresa May’s efforts to convince the public that cabinet members are united and in support of her following the disastrous Conservative Party conference, May’s political future remains in question. Not only did she change her mind and make a U-turn in calling for early elections, but also she led an unsuccessful election campaign, which resulted in the Conservative party losing its majority in Parliament. In addition, her choice of ministers led to a “power struggle” within the cabinet. While Brexit Minister David Davis and Foreign Secretary Boris Johnson have advocated for a hard Brexit, Chancellor Philip Hammond emphasized the need for a smoother and softer Brexit that would enable businesses to assess the European market.
Last week, former Conservative Chancellor Nigel Lawson called for Hammond to be sacked, claiming that he is unhelpful to the Brexit process.
“What he is doing is very close to sabotage,” Lawson said.
Hammond is known for his cautious attitude towards the Brexit process and recently has been the primary target of hard Brexiteers. Speaking to Commons Treasury Select Committee, Hammond had said that he would wait until the last possible moment before releasing large amounts of money to fund contingency plans for Britain leaving the EU without a Brexit deal.
In response to questions from the Brexit committee, he said, “We should be in the business of making potentially nugatory expenditure until the very last moment where we need to do so.”
However, Hammond’s poor choice of words made headlines in the British media last weekend. Speaking to SkyNews on Sunday, he said, “My message is this: I understand that passions are high and I understand that people have very strong views about this but we’re all going to the same place. We all have the same agenda. The enemy, the opponents, are out there. They’re on the other side of the negotiating table. Those are the people we have to negotiate with, negotiate hard to get the very best deal for Britain.”
Later he tweeted later to clarify his position: 'I was making the point that we are united at home. I regret I used a poor choice of words.”
However, it was an important mistake considering his position in the government.
The European Commission President put a bit more pressure on the U.K. government this weekend. Speaking at the Luxembourg University, Juncker told students, “We cannot find, for the time being, a real compromise as far as the remaining financial commitments of the U.K. are concerned.”
“As we cannot do this, we will not be able to say during the European Council in October that now we can move to the second phase of the negotiations, which means the shaping of the British-European future. Things have to [be] done. One has to deliver,” he added.
“If you are sitting in the bar and you are ordering 28 beers and then suddenly some of your colleagues [are leaving without] paying, that is not feasible. They have to pay. They have to pay,” The Guardian newspaper quoted Juncker as saying.
The EU is apparently waiting for the British government to come up with the amount of the divorce bill to start negotiations on a new deal with the U.K. Estimates on the size of the divorce bill have varied from about €60 billion to €100 billion (£54bn to £90bn). On the other hand, it is not very easy for May to convince the hard Brexiteers in the cabinet to proclaim any amount at the moment as her political future as PM is very much in question.