Germany’s finance minister Wolfgang Schäuble has warned that the UK may still be faced with the prospect of settling its EU bills a decade after exiting.
The comments mark a hardening of Germany’s stance towards a post-Europe UK, which will be a concerning development for Prime Minister Theresa May. May continues to remain vague on her specific plans regarding triggering Article 50.
“Until the UK’s exit is complete, Britain will certainly have to fulfil its commitments,” Schäuble said in comments to the Financial Times.
“Possibly there will be some commitments that last beyond the exit … even, in part, to 2030. Also we cannot grant any generous rebates.”
“Otherwise we will be in a negotiation that cannot end well.” he continued.
In addition, Mr Schäuble also discredited claims that London could retain its status as a financial epicentre, warning that the UK should prepare for competition from Frankfurt. In the interview, the necessity of abiding to international rules relating to investment was also emphasised. “These rules apply to all, whether EU members or not,” Schäuble stated.
Moreover, Mr Schäuble rejected suggestions that the UK could remain party to certain aspects of the EU that prove beneficial to the financial sector, such as access to the single market.
“There is no à la carte menu,” he told the FT. “There is only the whole menu or none.”
He added: “Without membership of the internal market, without acceptance of the four basic freedoms of the internal market, there can, of course, be no passporting, no free access for financial products or for financial actors.”
This follows calls made by French President Francois Hollande in October for the EU to remain stubborn with regards to negotiations over Brexit. Hollande reasoned: “There must be a threat, there must be a risk, there must be a price.”
Prime Minister May is currently in Berlin for a summit with EU leaders and outgoing US President Barack Obama. The leaders are set to discuss “pressing global issues” including proposed extensions of sanctions against Russia and the continual threat posed by IS.