Senior EU officials tell me the EU is considering offering qualified Russian 🇷🇺 citizens EU 🇪🇺 passports - to accelerate Russian economic brain drain
This is just one of many innovative measures being considered to complement economic sanctions now in place 🇪🇺🇺🇦
EU side now very concerned about contagion risks UKG's fiscal actions pose to financial stability in the Eurozone
Plenty of Euro area banks and insurance firms are exposed to UK gilts
This is serious. EuropeanCommission is very worried. IMF is worried. White House is worried
Events last week show the entire Brexit edifice now effectively collapsing under its own contradictions. Its political economy consequences - low taxes & deregulation - at last made explicit & rejected by markets & voters; the minoritarian nature of the project exposed
Liz Truss: "I will not sign up to anything which sees goods moving within our own country being subject to checks."
But
@BorisJohnson
did - when he opted for a hard Brexit
Hard to articulate just how far Germany's star in EU has fallen. In Bxl & EU capitals, Berlin is seen to be on wrong side of every important debate - weapons to Ukraine, more fiscal solidarity in Europe, energy market interventions etc. It's even affected bilateral Fr-Ger ties 1/
UK in absurd position now where EU, US & much of G20 know its problems are largely due to Brexit
But Tories can't acknowledge that & Labour doesn't want to, to avoid EU being issue at next election
So the elephant in the room keeps growing (& still has some ways to go/grow)
Senior French official on the situation with
@trussliz
in UK
“It's the ideology of Brexit meeting its dead end”
French Govt in watching mode. No feelings. Certainly no schadenfreude
I've long argued that the post-Brexit UK-EU relationship would be difficult, but even I'm surprised how far & fast it has sunk
A senior EU official tells me: “Johnson is a crook. He's signed up to something he has no intention of implementing.“
Negative levels of trust
Amazement among senior EU officials (& pro EU Tories) at amazing claim in
@BorisJohnson
letter to all Tory MPs: “As we promised, we resolved the long Brexit crisis and created a new friendly relationship with the EU.” Come as news to most in Brussels
Macron today produced maps of a poss Russian breakthrough towards Kyiv or Odessa which could oblige the west to act to prevent a Russian victory in Ukraine. In talks w French opposition leaders, Macron said there should be no more “red lines” on Fr involvement in the conflict 1/
Mood is awful. Despite nonsense from Truss et al, there's growing realisation full fiscal U-turn is needed. Many Tory MPs want to make
@KwasiKwarteng
scapegoat in hope it lets
@trussliz
reset. Others think only way to win back markets & prevent Starmer landslide is her head 1/
Actually
@iainmartin1
I'm a proud British Pakistani, worked for our Govt, represented our country's interests in Brussels, want what is best for my country
On Ukraine,
@EmmanuelMacron
has made a spectacular two-year journey from apparent dove to leading hawk. Why? French officials say the facts have changed and Macron has changed with them. Is that a full explanation? A VERY LONG historical thread... 1/
French sources are unwilling to talk of splits in the western alliance against Putin. They talk, however, of a fundamental “difference of appreciation” between the approach of Paris and Berlin and that of the “anglo-saxons” and the Eastern Europeans 1/
Hearing from senior sources that France will significantly step up its military support for Ukraine (
@EmmanuelMacron
told
@ZelenskyyUa
in their call on Saturday)
🇫🇷🇺🇦🇪🇺
Can anyone imagine Angela Merkel or
@EmmanuelMacron
behaving like David Cameron or
@BorisJohnson
have? Being accused of the things they are?
All across the EU, I'm constantly asked the same question: “What happened to your country?“
A French plot to ruin Brits’ holidays? Hardly. Why should France want to discourage UK tourists? The long queues at Dover port today are the product of a) Brexit and b) bad luck.
1/
President
@EmmanuelMacron
today offered a sweeping vision of a new European Political Community - an outer circle of European states, including Ukraine and the UK, which would be linked to the EU but not part of it 1/
Senior EU officials have found Frost's intervention this week surprisingly honest. He negotiated NIP to get Brexit done, stay in power. He now wants rid of it to win an election, stay in power
Nothing to do with unionism, economics, Global Britain. Just Tories pursuit of power
President Emmanuel Macron warned the French people tonight that they were at “the beginning of a new epoch” in which “democracy is challenged before our eyes” and “war in Europe is no longer a question for the history books.” 1/6
‼️The EU will soon adopt a “code of conduct“ for how 27 should interact with UK. Will force a level of transparency, co-ordination on EU capitals & their dealings with London
Unprecedented for EU to do this with a 3rd country. Shows how little 🇪🇺trust there is with 🇬🇧 at moment
Lord Frost’s resignation has barely made the news in Germany & from what I can tell there's only very limited coverage in France. Highlights again how Europe has moved on from Brexit in a way the UK has not
The reputational damage Germany is suffering - in Ukraine, Europe & abroad - is immense & I suspect won't be undone, even when it ends up sending Leo's, or allows other countries to
This view (Krugman) is becoming mainstream:
"What strikes me is contrast between Ger current reluctance to make moderate sacrifices, even in the face of horrific war crimes, & immense sacrifices Ger demanded of other countries during the EU debt crisis".
Two things to note about President Macron’s grim-faced, four minute TV address to the nation just now. He was standing in front of the French, EU AND Ukrainian flags – the first time a French head of state has included a foreign flag in a national address 1/3
😂
Musk clearly doesn't understand how the EU - as a regulator much less a political entity - works
It's for him to demonstrate compliance with the DSA. Not the other way around
“Reality is biting,” says a former cabinet minister. “We are on for a massive defeat. We aren’t talking margins of error in opinion polls any more. The public are tuning out now. They are psychologically exhausted by this government.”
What did the Tories expect? 1/
The political & policy reversal in Europe over SWIFT over last 24h is without precedent
It suggest EU cd be willing to stomach significant economic consequences to punish Russia for its invasion of Ukraine
Says something v imp about how 🇪🇺 is seeing & responding to events
The UK is going to invoke Article 16. They'll argue it's surgical - "it's only Articles 5 & 7" etc. But EU will (rightly) see it as nuclear
I expect no intermediate step (tariffs). Just an immediate, emergency EU Council & political decision to *suspend* the UK-EU trade deal 1/
Senior EU official: “VdL has committed an error of such a strategic nature this will cost her very badly. She has damaged our entire outreach over months in the global south on the Russia/Ukraine conflict. She is endangering citizens of Europe who are held hostage... ”
.
@EmmanuelMacron
warned Fr people last night to prepare for a miserable winter in which they must be ready to pay “the price of liberty”. At a WW2 commemoration in South of Fr he gave a stark “blood, sweat & tears” speech linking Ukraine war to energy shortages & rising prices 1/
This is a great triumph for Emmanuel Macron, in all the circiumstances: a victory for Europe, a victory for democracy and above all a victory for France 1/2
What's odd about
@trussliz
remarks on Macron is that she's already won keys to No10. There's no need to further appease Tory members
All she's doing is making her life as PM even more (!) difficult
There is no prospect of EU goodwill without France on side. Literally - none
No tears over Frost on other side of Channel. One senior French official: “He was polite. The diplomatic training showed. But he regarded Brexit as a new Cold War, an ideological struggle, with London playing the part of the Kremlin. He always looked for problems not solutions.”
Johnson, Frost, Cummings et al had an 80-seat majority, delivering hardest form of Brexit possible, with a full-fat Irish Sea border & clean regulatory break from EU
They've had every opp to demonstrate Brexit can work & wasn't doomed to failure
They failed. They're accountable
So
@trussliz
is the latest (in a long line) of UKG ministers to lose the plot with EU. Having failed to charm away a border in Irish Sea (😂😭) she is now trying to bounce EU (&
@10DowningStreet
) into unilaterally suspending Protocol to prize concessions from EU. It won't work 1/
There is talk in Tory circles of MPs agreeing to a “unity candidate” so they could remove Truss as party leader in a vote of confidence. Unlikely
@Conservatives
will be able to unite around a single figure. But incredible this is in ether after only 37 days of Truss in power
Horrible. Global Britain. Just terrible
“Two rejections said the children had failed to prove they had “parental consent” for the trip, despite travelling to visa interviews with their parents and signing an online parental consent form with the school.”
The EU's proposals for addressing the problems in NI are substantive & far reaching. They will effectively do away with all paperwork for goods destined for NI - instead of a border in Irish Sea, think of a “green” (NI-bound) & “red” (Single Market) lane 1/
.
@EmmanuelMacron
warned today that the European Union and the European model of civilisation could “die” unless steps were taken in the next 5 years to create a European “power” which protected itself from Russian military aggression & Chinese & American protectionism. Thread 1/
Lord Wolfson
@BBCr4today
IV absurd
"In respect to immigration it's def not the Brexit I wanted"
So he wants soft Brexit & EU rule taking?
He still doesn't get it. There isn't a version of Brexit that "works". It is & always has been an exercise in damage limitation. Full stop
The spin and translation imposed on the French PM’s letter is misleading. The bulk of the letter - 98% to use a topical figure – is asking Brussels to ensure that the UK respects its post Brexit deal 1/
NEW: Huge escalation of French fishing row tonight
Extraordinary letter from French PM Jean Castex to European Commission President Ursula Von Der Leyen obtained by POLITICO
France tells Brussels it must demonstrate that Britain has been damaged by leaving the EU
.
@RishiSunak
deal v imp as it completely invalidates absurd hypothesis of Frost, Cummings et al that only way you “win” in negotiations with EU is with aggression, threats, intransigence, a hardline stance
Seems being reasonable & constructive is what actually delivers results
I think Frost is seriously underpricing strength of US response & strength of EU retaliation if UKG plays fast & loose with Sefkovich package - & Ireland's place in SM, peace process & GFA as a result
As one Cabinet minister says privately, the attitude of
@BorisJohnson
to everything - Protocol, AUKUS, COP26 etc is: “It will be alright on the night.”
Until it isn't
For those of us that cut our teeth through Greek debt crisis, it was obvious more market pressure was likely, would be relentless & that this is not a fight Truss & Kwarteng could ever hope to win. See no way back for Govt now given economic and political mess they've created 2/2
‼️‼️‼️
Exit polls in Poland point to a clear majority for the opposition. Based on these projections, this is the end of PiS rule
Liberal opposition - 248 seats
PiS - 200 seats
Konfederacja - 12 seats
Folks on twitter know I'm scrupulously objective & analytical about the Brexit views I put up. But on this occasion, I'll break with precedent: I believe that UK would be better/stronger in EU & EU would be better/stronger with UK in. We will both lose tremendously tonight 😢
Senior 🇫🇷 official “If 🇬🇧 was still in EU, e/thing we wd have done wd have been co-ordinated with 🇬🇧 first, then 🇩🇪. Positive this is how we wd have done it. 🇬🇧 wd have been totally in the lead in EU. Now UK is totally irrelevant to EU disc. Are they influential in US? Who knows”
One of the lessons is that the UK and the EU face a common threat and that the Brexit deal should have included arrangements to work together on foreign and defence policy. Remind me who blocked that???
.
@EmmanuelMacron
has been selected for the first state visit of Biden's presidency. King Charles III has decided that his first state visit will be to Paris. Macron has big & growing domestic problems - but he has established himself as an influential statesman in difficult times
In December last year,
@EmmanuelMacron
said in private that he was “distressed to see a great country led by a clown”. His comment provoked the usual synthetic fury in the UK media. It’s now the opinion of most Tory MPs. Will the Daily Mail apologise to Macron? Thought not 1/
President
@EmmanuelMacron
today called for an EU tax on the super-profits of energy companies to provide funds to pay for EU action to ease the energy crisis this winter. He said he had the support of German Chancellor Olaf Sholz and expected proposals from Brussels shortly 1/
Many in EU have written to me saying they're impressed by
@Keir_Starmer
“shrewd“ move
If there is a route back into EU, it starts with Labour winning power. Which means playing long game - & keeping zip for now
In December, I'm confident the EU will open - immediately or imminently - accession negotiations with Ukraine. Because EU leaders have understood that admitting Ukraine into the EU will be Europe's single biggest geopolitical contribution to the war
Thread 1/
Hearing Truss utterly failed to rally Tory MPs at the 1922 tonight. It's usually a venue where, however bad things are, the leader gets a bit of a boost. Not Truss and not tonight. Wondering how many letters have gone in
If HMG goes big/nuclear on Article 16, the EU is preparing the ground to do so too. A big UKG response will be met with an even bigger, more forceful, EU one
This is the miscalculation I fear Johnson & Frost are about to make
This view on Mordaunt is widely shared in Brussels - with one important qualification. One senior EU official tells me she "..was even less qualified than Frost"
Ex Cabinet minister Lord Frost has "grave reservations" about Penny Mordaunt becoming the next PM.
"I am surprised at where she is in this leadership race. She was my deputy. She wasn't fully accountable or visible. I had to ask the PM to move her on"
@JuliaHB1
|
@DavidGHFrost
🇪🇺 response to 🇷🇺 invasion of 🇺🇦 is unlike its response to any other crisis I've worked on (many): Greece, Ukraine 1.0, Refugees, Brexit, Covid
Never let it be said again that EU's response is "bureaucratic", "incremental" & "reactive". Time to revisit our analytical assumptions
Le Pen needed a knock-out. Macron won on points. Last night’s French presidential election debate was far from the 2017 walkover but Macron, harrying and interrupting, threw the far right leader off her stride. An Elabe poll today made him the victor by 59%-39% 1/
Europe only featured twice in 1h leadership debate - both times as lies
Truss getting away with implying she’s sorted Protocol with NIP Bill. Both lying about Brexit & Dover
Europe basically stuff of pure fantasy in British politics now. Totally unhinged from reality
The theory: Brexit was going to boost the city, allowing London to rival NY etc once all EU's unnecessary bureaucracy was removed
The reality: There are 79% fewer banking jobs in London since Brexit
When will Johnson, Frost, Cummings etc be held accountable?
h/t
@edwinhayward
Just to complicate things... Some fresh intelligence from chats today. Think there's going to be a really big push on 19 Oct by Remain alliance/cross party MPs to make any
@BorisJohnson
deal subject to a confirmatory ref. Extension needed would then be 6 months. More next week
The appointment of a 34y old far-right, Putin apologist as editor of France’s only stand-alone national Sunday newspaper, meant that the paper failed to appear today for only the 2nd time in its 74 year history 1/
What a sorry sight to see two great countries, or at least their leaders, fighting like school-kids only two days after the calamity in the Channel in which at least 27 refugees died. Both Johnson & Macron merit some of the blame. But this is mostly down to Johnson 1/
We may be at a turning point in UK/EU relations. Not because of supposed progress on NI Protocol (there isn't much) but creation of the “European Political Community” - whose most important achievement may be to reintroduce post-Brexit UK back to idea of European co-operation 1/
I can't find a single senior official in Bxl or any EU capital who thinks EU, while open to negotiations & solutions, is for moving on core issues of principle on Protocol. Even less likely if Truss wins, is beholden to ERG & pushes her NIP Bill
Fear big UK/EU conflict is coming