EU will give May ultimatum of Norway or Canada-style Brexit – THIS is what UK will choose

EU will give May ultimatum of Norway or Canada-style Brexit – THIS is what UK will choose

BRITAIN will be offered either a Norway or Canada-style ultimatum when it leaves the European Union, a former Bank of England chief has claimed.

The Brexit Secretary said the UK was seeking a “Canada plus plus plus” trade arrangement with the European Union when it leaves the block.

John Gieve, the former Deputy Governor for Financial Stability of the Bank of England, suggested the UK could be given a simple ultimatum by the EU.

Speaking on CNBC said: “There is only a year to go remember, or 15 months to go before we leave. That I think is the main sticking point of the Brexit wing of the Conservative Party.

“That is the thing that they are most focused on. We actually do leave in 2019. Then move to a transition where we are outside the EU.

“Getting there in one sense is very simple. The EU 27 make us an offer, it is either Norway or Canada, or Canada modified and we will choose Canada.

“But getting it through the parliamentary process in Europe and in Britain is going to show up many many alarms and excursions, and we will have more of what we have seen in the last week of ‘no it’s all off’ and ‘no we have just saved it’.

“About this time in the Autumn of next year I expect there to be quite a lot of uncertainty, ructions and excitement and markets are likely to respond to that.”

Mr Gieve added that British banks had already begun planning for Brexit with moving staff to the continent.

A Norway-style Brexit agreement would see the UK accept freedom of movement, whereas a Canada-style deal would see Britain fall short of agreements over services.

Speaking on The Andrew Marr Show on Sunday, the Brexit Secretary David Davis said the UK would seek a “Canada plus plus plus” deal.

Mr Davis said he wanted to see an “over-arching trade deal” but including services.

The Brexit Secretary said it would also set out “individual arrangements for aviation, nuclear and for data”.

He said: “All we want is a bespoke outcome. We will probably start with the best of Canada, the best of Japan and the best of South Korea.

“And then add to that the bits that are missing – which are the services.”

The Brexit Secretary’s plans, however, clash with some members of the cabinet, such as Philip Hammond, who supports a Norway-style deal leaving Britain more aligned with the EU.