Government Brexit strategy dubbed a ‘fantasy’
- Credit: PA Wire/PA Images
A senior European Union official has brutally branded the UK's approach to Brexit as a 'fantasy'.
The official insisted Britain must accept the 'consequences' of its decision to quit the bloc and abandon the 'fantasy' that things would remain the same.
The increase in tension emerged after the UK made clear it would seek a return of £1 billion in funding it has put into the Galileo satellite system if the EU continued to shut Britain out of key aspects of the project post-Brexit.
The spat also came as Bank of England governor Mark Carney said a 'disorderly' Brexit transition period may trigger a cut in interest rates, or force a pumping of money into the economy, in order to stabilise the situation.
The UK central bank's current projections are based on a smooth transition when Britain leaves the European Union, he said in a speech on Thursday, before warning that 'a sharper Brexit could put monetary policy on a different path'.
You may also want to watch:
Addressing the Society of Professional Economists, he said that if that happened, the Bank's Monetary Policy Committee (MPC) would face 'a trade-off between the speed with which it returns inflation to target and the support policy provides to jobs and activity'.
Earlier this week, Carney said Brexit has knocked real household incomes by around £900, and lowered growth by 'up to 2%' against what the Bank of England had expected in 2016 if the UK had voted to remain in the EU.
- 1 Nigel Farage loses nearly 50,000 followers after Twitter suspends QAnon accounts
- 2 Tory minister admits UK rejected EU's music visa offer in order to 'take back control' of borders
- 3 Former Brexit Party MEP dies in diving accident in the Bahamas
- 4 Bob Geldof takes swipe at No 10 saying 'lying is second nature' to them
- 5 Progressive alliance could see Labour win 351 seats at next election, new analysis reveals
- 6 The greatest failure of government in our lifetime
- 7 Boris Johnson blames seafood companies for post-Brexit sales slump
- 8 Jacob Rees-Mogg says it's 'all the EU's fault' musicians can't tour Europe
- 9 Priti Patel fails to appear in Commons to answer questions on missing police records
- 10 The bigot we should have called out on day one
But Downing Street hit back with Theresa May's chief Europe adviser Olly Robbins tweeting: 'Very proud of the government team that worked so hard to support technical talks in Brussels this week. UK proposals for a deep relationship, calmly and professionally presented.'
Chancellor Philip Hammond also said the 'fantasy' claim was not 'particularly helpful'.
Become a Supporter
The New European is proud of its journalism and we hope you are proud of it too. We believe our voice is important - both in representing the pro-EU perspective and also to help rebalance the right wing extremes of much of the UK national press. If you value what we are doing, you can help us by making a contribution to the cost of our journalism.