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Danish industry group ‘relieved’ at news of UK cabinet’s Brexit deal support

The Confederation of Danish Industry (DI) has said it is optimistic following Wednesday’s news that the British cabinet had agreed to support Theresa May’s draft Brexit agreement.

Published: 15 November 2018 10:35 CET
Danish industry group 'relieved' at news of UK cabinet’s Brexit deal support
British PM Theresa May made a statement on the draft Brexit deal outside 10 Downing Street on Wednesday evening. Photo: Tolga AKMEN / AFP/Ritzau Scanpix

DI, a private interest organisation funded, owned and managed by 10,000 companies within the Danish manufacturing, trade and service industries, responded positively to the announcement despite the significant hurdles still faced by the deal.

“The transitional agreement provides a certain amount of clarity for businesses that have long lived with uncertainty caused by Brexit,” DI director Thomas Bustrup told Ritzau in a written comment.

“But the agreement is not secured until it has been approved by the House of Commons in London and by the EU. Until then, we must hold our breath,” Bustrup added.

The DI director’s words of caution already appeared to have been borne out by Wednesday morning, as news broke that Brexit secretary Dominic Raab had resigned, saying he cannot back May's deal. That news puts the deal’s chances of survival into further doubt.

Even if the draft agreement, which was put forward by May and eventually received the backing of British ministers in a cabinet meeting on Wednesday, receives approval from the British parliament, it must also be approved by the EU parliament and the leaders of the remaining 27 EU states.

May’s agreement provides a transitional plan which will enable Danish businesses to trade with UK markets under the same conditions as today until the end of 2020. The EU and UK parliament would meanwhile work to secure a new, permanent trade agreement.

If no new agreement is reached by the end of 2020, businesses could again be faced by uncertainty as the end of that year approaches, Bustrup said.

“It’s important to bear this in mind, so we don’t think everything has now been sorted out and in good order,” he said.

Mikael Olai Milhøj, a senior analyst with Danske Bank, noted that major news on Brexit negotiations was highly significant for Danish businesses, given that the UK is one of Denmark’s largest export markets.

“That’s why it’s important for many Danish businesses to be able to continue trading relatively problem-free with the Brits in future,” Milhøj said to Ritzau.

“That would be the case if this agreement gets through,” he said.

READ ALSO: 'More holes than cheese': A recap of what Theresa May's Brexit deal means for Brits in Europe

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BREXIT

What Labour’s UK election win could mean for Brits in Europe

The UK's new Prime Minister Keir Starmer has swept into Downing Street in a landslide victory. But how will a Labour government affect Brits in Europe? And what, if anything, will the former 'Remainer' do about Brexit?

Published: 5 July 2024 15:31 CEST
Updated: 8 July 2024 13:40 CEST
What Labour's UK election win could mean for Brits in Europe

The Labour party won a landslide victory in the UK general election on Thursday, bringing an end to 14 years of Conservative party rule.

Labour majority

The new Labour government enters office at a time of high political and economic uncertainty, stagnant growth, public services pushed to breaking point, and Britain’s international reputation tarnished after the Conservative government staggered from calamity to calamity in recent years.

Leading up to the election, the question was not if Labour would win but when, and how big the majority will be. In the end Labour won one of the biggest landslides in British political history, taking 412 seats. 

What the new Labour government does (or more likely, doesn’t) do with its massive majority could have big implications on life for approximately 1.3 million UK nationals living throughout the EU.

Writing exclusively for The Local after his party’s election win, the UK’s new Foreign Secretary David Lammy said Britain would reset its ties with the EU.

“As the new British Foreign Secretary, with our Prime Minister Keir Starmer, this government will reset relations with Europe as a reliable partner, a dependable ally and a good neighbour.”

Lammy added: “We must do more to champion the ties between our people and our culture. Holidays, family ties, school and student exchanges, the arts, and sport (I was of course cheering on England in the Euros…). Thanks to this, our citizens benefit from the rich diversity of our continent.

“If we are to fulfil our ambitions for a reset, we must also improve Britain’s relationship with the European Union… I look forward to seeing Britain reconnect with our European neighbours in the years ahead.”

For many Brits in Europe (as well as those in the UK), the elephant in the room is, of course, Brexit.

Starmer and Labour’s Brexit policy

But what, if anything, does a Labour government actually mean for Brexit and Brits in Europe?

For many, Starmer first came to national prominence in his role as shadow Brexit secretary under former Labour leader Jeremy Corbyn. He was then an ardent Remainer, and largely responsible for Labour’s eventual position on a second referendum, demanding that the British people deserve a “confirmatory vote” on Europe.

How things have changed. In the build-up to the election Starmer categorically ruled out the idea of rejoining the single market and the customs union, let alone a second referendum on rejoining the EU. He has, however, stated that he will take steps to ease trade barriers and sign a bolstered security agreement with Brussels.

Asked recently by the British press if he could envision Britain re-entering the EU in his lifetime, Starmer was unequivocal. “No. I don’t think that that is going to happen,” he said. “I’ve been really clear about not rejoining the EU, the single market or the customs union – or a return to freedom of movement.”

These comments sparked a certain amount of anger and disappointment among many Brits in Europe. Although they were made before the actual election with Starmer still in campaign mode.

In essence, despite his Remain-backing past, Starmer’s position seems to be that Labour can improve the Brexit deal signed by the Johnson government in January 2020, rather than tear it up or try and force the UK back into the EU on new terms.

For those hoping to rejoin the EU one day, this will be disappointing. Brexit became something of an internal psychodrama for the Conservative party, yet Starmer’s Labour appear to have accepted it as the political framework and don’t dare reopen the debate.

So for the hundreds of thousands of UK nationals living in Europe there will be no return of their freedom of movement and EU citizenship anytime soon.

So will Labour change anything for Brits in Europe?

Labour has been tight-lipped on what its Brexit policy will actually mean in practical terms, but of the few concrete proposals it has outlined so far there are plans to revamp a veterinary deal on animal products to ease on paperwork and border checks, as well as making it easier for qualifications to be recognised abroad.

Labour has also promised to enshrine rights to consular assistance for UK citizens abroad in cases of human rights violations, and to make reciprocal arrangements for touring artists and musicians moving between the UK and EU.

In terms of broad strokes commitments, however, it’s hardly ambitious.

Some economic experts have suggested that rejoining the single market or customs union would significantly boost the British economy, so some hold out hope that the political and economic reality may force the new Labour government to reconsider its position on Europe somewhere down the line.

What about the roll out of the the EU’s new EES border system?

Britons travelling to Europe will face likely travel disruption when the EU finally rolls out its new biometric border checks known as Entry/Exit System or just EES.

There had been much talk of the UK government trying to get the rollout delayed in a bid to avoid or at least postpone the likely chaos. Could Keir Starmer’s government put pressure on the EU to delay EES?

Well the main point to note is that it’s up to the EU when it rolls out EES, not the UK government. It is due to be launched in October or November although an exact date has not been announced. However if there is any delay it will likely be because of concerns on the EU side rather than because of pressure from the UK.

READ ALSO: When will Europe’s new EES passport system be launched?

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