German Minister Talks Up Possibility of Compromise on Brexit

January 16, 2017 Share Print 0

The U.K. need not cut its trade and economic ties with the European Union if it seeks a deal that’s somewhere between the current single market and the World Trade Organization rules, a German minister told CNBC.

However, the British government has to be aware that it needs to compromise Jens Spahn, Germany’s deputy finance minister told CNBC on Monday.

“Who wants to have access to the internal market needs to accept the rules of the internal market and one of the rules is the freedom of movement,” he said.

“So if migration is an issue and I totally understand that then it’s going to be hard to have access to the internal market.”

The U.K.’s prime minister, Theresa May, is due to outline her Brexit priorities at a speech on Tuesday. Expectations are that she will seek to control the number of people entering the country — even if that means restricting the access that U.K. businesses have to the European common market.

According to Spahn, the EU and the UK need to work on a new relationship that is something between “what we have today and just WTO (World Trade Organization) rules.”

via CNBC

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.