Britain's government has the right to trigger Article 50, the formal legal process for leaving the European Union, before beginning exit negotiations with the bloc, Brexit minister David Davis told parliament on Wednesday.
When asked by a fellow lawmaker whether it was the government’s right to trigger Article 50 and then begin negotiations on an exit deal, Mr Davis said: “My honourable friend is exactly right.
“The premise on which we are advancing is that we will have proper scrutiny,” he added. “But it is not one where we will allow anyone to veto the decision of the British people.”
Mr David also said the UK is not yet in a position to give details of what it wants from negotiations on leaving the European Union beyond its “overarching aims”.
“We have been pretty clear on the overarching aims,” he said. “Not the detailed aims. We’re not even at the point that that’s possible.
“The overarching aims are these: bringing back control of laws to parliament, bringing back control over decisions of immigration to the UK, maintaining the strong security cooperation that we have with the European Union and establishing the freest possible market in goods and services with the European Union and the rest of the world.”
He said he wanted a free trade agreement with the EU which is at least as good as the current arrangement and added that warnings banks would cut jobs after the Brexit vote have been proven untrue.
Earlier,sterling rose after a brutal sell-off, as British prime minister Theresa May’s offer to give the British parliament some scrutiny of the process to leave the European Union calmed market fears of a “hard Brexit”.
Those fears – that Britain will give up full access to the EU’s single market in order to impose maximum control on its borders – pushed the currency to 31-year lows last week, including on Friday when it lost 10 per cent.
In further volatile trading overnight, sterling was quoted at more than 91p against the euro. However, this morning it was back just below 90p.
May’s decision comes ahead of a court ruling on Thursday which will decide if she can trigger article 50 – the rule that initiates the process of separating Britain from the EU – without the consent of parliament.
Soft Brexit
Many MPs seem to favour a “soft Brexit” or no Brexit at all and investors fear the “hard” option could hurt trade and foreign investment needed to fund Britain’s huge current-account deficit, one of the biggest in the developed world.
Against the US dollar, sterling was up 1 per cent at $1.2240, after having tumbled to $1.2086 on Tuesday when it appeared it was heading back towards a 31-year low of $1.1450 hit on Friday.
“After weeks of tough rhetoric pushing sterling into a trading environment closer to an emerging-market currency, the government may aim to stabilise markets with its rhetoric and suggestions now possibly shifting in tone,” said Morgan Stanley head of currency strategy Hans Redeker.
“However, there is a fine line to walk as May’s Conservative Party wants a clean split from Europe. In addition, giving in too much, even before article 50 negotiations have started, shifts the negotiation advantage towards the EU. Hence, the pound’s rebound should be limited and followed by a decline.”
