Brexit Bulletin: The EU Plays Even Harder Ball

In a new report, John Springford of the Centre for European Reform argued “Britain’s best hope” is to secure a Swiss-style trade deal focused on goods. That would represent the most the EU would be willing to offer without insisting on the supremacy of European courts and freedom of labor movement that May wants to avoid, he says.

The cost to the UK of such a deal would still be significant, according to Springford. It would suffer labor shortages and weaker economic growth and the financial industry would lose a “sizable chunk of activity” because it wouldn’t be accommodated in the deal.

“A Swiss-style deal would be a middle way between ‘no deal’ chaos and single market membership,” he said.