The £350 million row is (once again) distracting everyone from the real story. James Forsyth has written a bang on the money blog about the “biggest Cabinet Brexit split” – between “several of the most senior members of the Cabinet” who want an “EEA minus/light” deal, and Boris and Gove who want a CETA/Canada plus model. An EEA minus/light deal means the UK shadows EU regulations and ECJ judgements, tying the UK’s hands and not delivering the Brexit for which Britons voted. A Canada plus deals means the UK shadows some standards but mostly we would be able to forge our own way in the world. This is what is kicking off right now.
Guido understands Boris went bonkers last week when he found out Theresa May was heading towards the EEA light option at her Florence speech. Senior Tory Brexiters say the EEA light model is being pushed by Philip Hammond and Remainer civil servants in the Treasury, the permanently frustrating Cabinet Secretary Jeremy Heywood and Olly Robbins, the DExEU permanent secretary who it was announced this morning is off to Number 10. Dom Cummings, who Tim Shipman revealed yesterday was still in close contact with Boris and Gove, alleges David Davis is sympathetic to the EEA light option. Friends of DD deny that is the case. Boris and Gove are strongly opposed and insist it is the worst of all worlds.
As Open Europe’s Henry Newman, former SpAd to Gove, explains:
“Government needs to debate and decide what sort of country UK ought to be after Brexit: that’s the prior question rather than transition. The Treasury are pushing for us to be in an “EEA minus” arrangement – just outside of the Single Market but bound into a regulatory ERM. EEA minus would mean all the costs of Brexit and few opportunities. We need to be further along the spectrum from Norway/Swiss to Canada.”
EEA minus/light is essentially the Swiss model. When Switzerland sought to end freedom of movement they were threatened with being cut out of single market access and eventually had to climb down and relinquish control of borders. Theresa May should not be promising loads of money on Friday in exchange for a weak Swiss-type deal which does not deliver the Brexit people voted for. Guido believes May wants to do Brexit right, she has certainly shown no sign of wavering so far. She should remember that Boris and Gove won the referendum, not Hammond and Heywood…