by Mish

Expatriate rights are easy. Both sides can pass legislation quickly, at no cost.

As for the exit bill, the UK should tell the EU to go to hell. The UK would have no bargaining power if it agreed to give the EU all or most of €60 billion in exit bill claims before trade settlement negotiation.

With those new pre-divorce demands, Brexit Tade Talks Delayed Until Next Year.

The EU’s Brexit negotiators expect to spend until Christmas solely discussing Britain’s divorce from the bloc, denying London any trade talks until progress is made on a €60bn exit bill and the rights of expatriate citizens.

A narrow divorce-first approach favored by Michel Barnier, the EU’s chief negotiator, would represent a big setback for Britain’s aim for a fast-track EU trade deal, completed by the end of 2018.

A move to delay trade talks sets the stage for a high-stakes stand-off once formal Brexit negotiations begin. David Davis, the UK’s Brexit secretary, wants all elements of Brexit to be handled “in parallel”, saying he has told Mr. Barnier that his “sequential” plan for talks “does not seem practical”.

At one extreme some of the EU-27 — including some French officials — want Britain to honor its financial commitments as a first step. Others are concerned a hardline money-first approach will fail unless the “sweetener” of trade discussions is offered to keep the UK engaged. Spain, for instance, opposes “strict procedural requirements” and has backed early discussions about the future relationship.

Just Leave

For the third time, I suggest the UK “Just Leave”. There is nothing to negotiate with a collective set of fools whose clear intent is to punish the UK.

The EU believes it has the upper hand. They don’t. I discussed this on November 29, 2016 in Brexit Stacked Deck? Which Way? Don’t Negotiate, Just Leave!

Bluff from Schauble Germany’s finance minister Wolfgang Schäuble boasts Britain can’t lower corporation tax because the UK still has EU commitments.

Obviously, that claim flies out the window the moment the UK says “goodbye”. It is to the EU’s advantage, not the UK’s for the UK to enter negotiations.

The EU will try to drag the negotiations on forever. Heck, they won’t even have to try. Permanent negotiation is a natural process getting 28 nations to agree to anything, and under silly EU rules all 28 nations have to agree.

All the UK has to do is proclaim the treaty null and void. By doing so, all these accumulated fees the EU is threatening the UK with immediately go up in smoke. So do current UK contributions.

That is the ultimate trump card, and I mentioned that prospect on day one.

Brexit is a Religious Battle

On December 2, I wrote Brexit is a Religious Battle (And You Can’t Negotiate Religion)

You Can’t Negotiate Religion
Both sides appear firmly entrenched. And the entrenchment grows by the day. Jeroen ijsselbloem, who chairs the eurogroup of 19 eurozone finance ministers, insists UK Must Abide by EU Rules Post Brexit to Secure ‘Passporting’ Rights.

Given that hardening stance, the UK may as well sit down with the Pope in an effort to negotiate the “Holy Ghost” out of the “Trinity”.

Risk to UK
The risk to the UK is negotiations drag on and on with costs piling up. As long as the UK remains in the EU, the UK arguably has bills to pay.

Just Leave
There is one and only one solution to this madness: Just leave.

Only One Way to End Discussion Madness

27 nations will never agree to anything except complete capitulation by the UK.

Mike “Mish” Shedlock

EU Buffoonery: Brexit Divorce Bill Upped to €100 Billion

The laugh of the day is a move by the EU to up Brexit divorce settlement to €100 billion from €60 billion.

EU Accuses UK of Backtracking: UK MPs Threaten to Block Divorce Payments

Brexit negotiations hit the rocks with the size of the Brexit divorce bill the key issue.

EU Seeks €20 Billion Divorce Settlement

The price of Brexit is high and rising. On top of previous demands such as a “fair but inferior deal” for the UK, the EU now wants a €20 billion divorce settlement as the UK’s “fair share” of inane projects the UK agreed to as part of the EU.

Germany, Italy, France Insist UK Accept €60 Billion Bill Before Brexit Negotiations Start

The EU’s chief negotiator, Michel Barnier, took a position earlier this week that the UK accept a €60 billion breakup bill before Brexit negotiations begin.

Brexit Deal "Sufficient Progress" Made: Divorce Talk Round Two Begins

UK Prime Minister Theresa May caved in on enough things allowing the EU negotiators to proclaim "Sufficient Progress".

Draghi Increases Risk of Global Trade Collapse With Brexit Tough Talk

The ECB has enough on its hands already: Collapsing Italian banks, a Deutsche Bank derivatives mess, massive Target2 imbalances, and the rise of eurosceptics like Beppe Grillo in Italy and Marine le Pen in France.

EU Brexit Document Demands UK Payment for Everything Down to the Gnat’s Ass

Brexit without a signed agreement looks increasingly likely as I suggested all along. EU documents reveal “Painstaking Brexit Detail” down to the smallest item demanded by every nation.

Divorce Proceedings Begin March 29: Brexit Debate, Mish vs Financial Times

The UK announced it would file Article 50 on March 29. At that time, control over the timing and structure of negotiations goes to the EU.

Halleluiah! Trump Says Trade Talks "Back on Track"

Trade with China talks are "back on track". But what track is that?