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Saturday, March 4, 2017

Peers urge PM not to pay divorce bill if no Brexit deal is agreed

Theresa May is being urged to walk away from the European Union without paying a £50bn "divorce settlement" being demanded by Brussels.

Government lawyers are recommending that the Prime Minister should stop paying money to Brussels if Brexit negotiations end in deadlock with no deal.

But the PM is also being warned that withholding cash from the EU could damage the UK's prospects in the Brexit negotiations after she triggers Article 50.

The highly contentious demand comes in a report by a high-powered House of Lords committee which has examined the legal consequences of Brexit.

The EU's chief Brexit negotiator, Michel Barnier, has demanded that the UK pays the £50bn bill for exiting the EU, a demand condemned by pro-Brexit Conservative MPs.

Mrs May is widely expected to reject the Brussels demand, but Brexit Secretary David Davis was giving nothing away when questioned about it this week.

:: Your guide to Brexit jargon

Asked during a visit to Denmark if the UK was prepared to accept the £50bn bill, he said: "We are a country which believes in the rule of law and we take our responsibilities seriously.

"But we think this is something that needs to be dealt with alongside the issue of markets, the issue of other relationships between us and at the end of this we will come to an amicable agreement. But we are not at that stage."

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