Having spiked overnight on the back of surging inflation, Cable just tumbled after it appears disagreements over the ‘divorce’ payments forced EU and UK to postpone the next round of Brexit talks… for a cooling off period?
As we detailed previously, the EU is accusing UK of backtracking on its promise to pay an exorbitant fee to leave the union.
EU negotiators were said to have been left ‘flabbergasted’ after British lawmakers told them there was little or no legal basis for their 90billion claim. A young civil servant reportedly left EU negotiators ‘open-mouthed’ with a line-by-line ‘technical’ demolition of the demand.
Tory grandee John Redwood said last night that there was no legal basis for the demand. He also said Mr Davis had no right to authorise it without parliamentary approval.
‘Article 50 is clear,’ he said. ‘Once a state leaves it has no further rights and benefits, and no further duties or obligations. It is of course true the treaty does not prevent the EU accepting a payment volunteered by a departing state if it wished to pay one. However, the UK could not make such a payment legally under our own law and system for controlling public spending.’
This post was published at Zero Hedge on Sep 12, 2017.