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REUTERS/Toby Melville BREXIT

Parliament must vote before UK can trigger Brexit, top court rules

By Michael Holden and Estelle Shirbon Party said it would oppose Brexit path of Brexit or her timetable. rime Minister unless there was a second Davis said: "The point of no return must give parliament a vote referendum on the final deal. was passed on June 23rd last year. before she can formally start Meanwhile, the Scottish National This judgement does not change the Britain's exit from the Party, which has 54 MPs, vowed to fact that the UK will be leaving the P put forward 50 "serious and ." European Union, the UK Supreme Court ruled on Tuesday, giving substantive" amendments. Last week May set out her stall for lawmakers who oppose her Brexit However, the opponents of Brexit are negotiations, promising a clean break plans a shot at amending them. still likely to be some way short of the with the world's largest trading bloc A "straightforward" bill will now be numbers needed to either delay as part of a 12-point plan to focus on rushed to parliament within days, the May's timetable or to stop it. global free trade deals, setting a government said after the country's The upper chamber, the House of course for a so-called "hard Brexit". highest judicial body decided May Lords, could also seek to amend the Some investors and those who backed could not use executive powers known plans but ministers are confident that the "remain" campaign hope that as "royal prerogative" to invoke Article unelected peers would not try to stop lawmakers, most of whom wanted to 50 of the EU's Lisbon Treaty and Britain leaving the EU after voters stay in the EU, will force May to seek a begin two years of divorce talks. backed Brexit by 52-48 percent in deal which prioritises access to the However, the judges did remove one last June's referendum. European single market of 500 major potential obstacle for the million people, or potentially even government, saying May did not need BREXIT PLANS UNCHANGED block Brexit altogether. Sterling the approval of Britain's devolved May's spokesman said the court's initially rose on the news that the assemblies in Scotland, Wales and decision did nothing to change the government had lost its appeal, but it Northern Ireland before triggering Brexit. "We will within days introduce legislation to give the government the legal power to trigger Article 50," Brexit minister David Davis told parliament. "This will be the most straightforward bill possible to give effect to the decision of the people and respect the Supreme Court's judgment." May has said she intends to invoke Article 50 before the end of March but the ruling means the Brexit process is now open to scrutiny from lawmakers, the majority of whom had wanted to stay in the EU. However, the main opposition Labour Party has said it would not block Brexit although it would try to amend the legislation. "Labour will seek to build in the principles of full, tariff-free access to the single market and maintenance of workers' rights and social and environmental protections," party leader Jeremy Corbyn said. Media reports have suggested that up to 80 Labour lawmakers (MPs) in the 650-member House of Commons, the Britain's Attorney General, Jeremy Wright, speaks outside the Supreme Court following lower chamber, would ignore Corbyn the decision of a court ruling that Theresa May's government requires parliamentary and vote against triggering Article 50, approval to start the process of leaving the European Union, in Parliament Square, central while the small Liberal Democrat , Britain, January 24. /Toby Melville

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then fell over half a cent to hit day's , co-chairman of the the court's decision on devolved lows against the dollar and euro after campaign. "The assembles raised the spectre of the ruling that the devolved Lords should also follow suit; any another Scottish independence assemblies did not need to give their delay by them would ensure their referendum because Scots, who voted assent. Those who campaigned for abolition." in favour of staying in the EU, were Britain to leave the EU said the vote While Tuesday's ruling has settled not being treated as equal partners. on triggering Brexit should be a mere the argument over the role of May's spokesman also stressed that formality. parliament in starting the Brexit the government's assertion that "Any attempt to delay the Brexit process, other hurdles and Article 50 was irreversible, but process ... would be an unforgivable headaches await May. Scotland's another legal case is being prepared betrayal of the British people," said First Minister Nicola Sturgeon said to challenge that view in the courts.

ANALYSIS Britain's Brexit plans unlikely to be slowed by Article 50 defeat

By Michael Holden and William James rime Minister Theresa May's plans to start the process of Britain leaving the European P Union by the end of March are unlikely to be hindered or slowed by Tuesday's Supreme Court ruling the government must seek parliamentary approval. In the ruling, judges on Britain's top judicial body upheld an earlier High Court decision that lawmakers had to give their assent before May can invoke Article 50 of the Lisbon Treaty which formally starts two-years of divorce talks. However, the legal defeat, while an inconvenience and embarrassment for the government, is not expected to delay its Brexit timetable or, as some investors and pro-EU supporters hope, make it possible to stop Britain leaving the bloc. A man waves a European Union flag outside the Supreme Court in Parliament Square, Part of this is because the opposition central London, Britain, January 24. REUTERS/Stefan Wermuth is divided. "We will not block Article 50," Jeremy Corbyn, leader of the main opposition Brexit" - an agreement with the EU Although before June's referendum Labour Party which campaigned that puts immigration curbs above the vast majority of MPs in the against Brexit, said last week. "All access to the single market - to have Commons backed staying in the EU, Labour MPs (members of parliament) a greater influence on what the final most now say they would back Brexit, will be asked to vote in that direction deal should look like. Senior especially those in England and Wales next week, or whenever the vote ministers in May's Conservative whose constituents had strongly comes up." government, which had been backed leaving the bloc. Not all Corbyn's colleagues may go expecting to lose the case, have MPs voted overwhelmingly to support along, but May can get the votes she already drawn up a series of options, the timetable of May's Conservative needs for overall passage. including a short, tight bill which will government for invoking Article 50 However, what the decision could do quickly be put before parliament's before April in a non-binding vote in is give an opportunity for Labour and lower chamber, the House of December. other lawmakers who oppose a "hard Commons. Sources from both May's ruling

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Conservatives and the opposition years, has said he would fight for opposed to Brexit and do not have Labour Party have told Reuters there Britain to have full access to the voters to worry about. was scope for a bill to be accelerated single market "with reasonable If the Lords were to vote against through parliament, without management of migration". approving the triggering of Article 50, restricting debate, to ensure it could Labour could try to amend any bill to the Brexit timetable could be severely pass before the end of March. ensure this, attracting support from delayed. Labour, though, faces a particular some Conservative MPs, who oppose However, the government is confident problem as many of its traditional a "hard Brexit", and other smaller the bill will pass through the Lords working class supporters voted to parties such as the Scottish because there would be a leave the bloc and have been wooed Nationalists and Liberal Democrats. constitutional crisis if unelected peers in recent years by the anti-EU UK The greatest potential threat to May were to thwart the will of the people Independence Party (UKIP). comes from parliament's unelected expressed both through the Whilst not blocking Brexit, Corbyn, upper chamber, the House of Lords, referendum and from their who himself was an EU critic for many where many peers remained strongly representatives in the Commons.

FACTBOX Reaction to UK Supreme Court ruling

rime Minister Theresa May forced by the Supreme Court to meaningful vote to ensure the final must get parliament's accept the sovereignty of deal is given parliamentary approval." approval before she begins parliament." P Britain's formal exit from the "Labour respects the result of the SCOTTISH NATIONAL PARTY: European Union, the Supreme Court referendum and the will of the British The Scottish National Party welcomed ruled on Tuesday. people and will not frustrate the the decision by the Supreme Court process for invoking Article 50." that parliament must have the The UK's highest judicial body "However, Labour will seek to amend opportunity to vote on legislation dismissed the government's argument the Article 50 Bill to prevent the before notice of Article 50 can be that May could simply use executive Conservatives using Brexit to turn authorised to leave the European powers known as "royal prerogative" Britain into a bargain basement tax Union. to invoke Article 50 of the EU's Lisbon haven off the coast of Europe." Following the decision by the Treaty and begin two years of divorce "Labour is demanding a plan from Supreme Court judges, the SNP talks. the government to ensure it is vowed to put forward 50 "serious and Below is some reaction to the accountable to parliament substantive" amendments to UK judgment: throughout the negotiations and a government legislation.

SPOKESMAN FOR BRITISH PRIME NICOLA STURGEON, FIRST MINISTER THERESA MAY: MINISTER OF SCOTLAND AND SNP "The British people voted to leave the LEADER EU, and the government will deliver "It is vital that the Westminster on their verdict – triggering Article 50, parliament is now given the fullest as planned, by the end of March. possible opportunity to debate and Today's ruling does nothing to change decide upon the triggering of Article that." "It's important to remember 50 and also the terms of the UK's that Parliament backed the negotiating position. SNP MPs will referendum by a margin of six to one seek to work with others across the and has already indicated its support House of Commons to stop the march for getting on with the process of exit towards a hard Brexit in its tracks." to the timetable we have set out." "The Scottish Government will bring "We respect the Supreme Court's forward a Legislative Consent Motion decision, and will set out our next and ensure that the Scottish steps to parliament shortly." Parliament has the opportunity to vote on whether or not it consents to JEREMY CORBYN, LEADER OF THE the triggering of Article 50." OPPOSITION LABOUR PARTY: "However, it is becoming clearer by "The government has today been REUTERS/Darren Staples the day that Scotland's voice is simply

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not being heard or listened to within experience and expertise to bear in to play hard ball in the negotiations." the UK. The claims about Scotland helping the government select the "I am convinced that though this being an equal partner are being best course in the forthcoming Brexit skirmish has been lost in the courts, exposed as nothing more than empty negotiations - negotiations that will the war will be won". rhetoric and the very foundations of frame our place in the world and all the devolution settlement that are our destinies to come." ARRON BANKS, CHAIRMAN OF supposed to protect our interests ... BREXIT CAMPAIGN GROUP LEAVE REUTERS/Peter Nicholls are being shown to be worthless. EU "This raises fundamental issues above "Today's judgment gives our out-of- and beyond that of EU membership. touch establishment the ability to Is Scotland content for our future to soften or delay the clean Brexit a be dictated by an increasingly right- majority of the British people voted wing Westminster government with for." "The people have been let down. just one MP here – or is it better that Parliament gave us a referendum and we take our future into our own the people had their say yet the power hands? It is becoming ever clearer has now been handed back to that this is a choice that Scotland Westminster by our unelected must make." establishment judges. This decision shows how broken the system is - true TIM FARRON, LEADER OF LIBERAL democracy is being thwarted." DEMOCRATS: "I welcome today's judgment. But this RICHARD TICE, CO-CHAIR OF court case was never about legal BREXIT CAMPAIGN GROUP LEAVE MEANS LEAVE: REUTERS/Peter Nicholls "It is regrettable that anti-democracy campaigners have delayed the Brexit process for so long." "No more time "There is no doubt that Brexit is the must be wasted on this - a one line most divisive issue of a generation bill must be tabled this week in but this case was about the legal parliament and a clear timetable set process not politics. Today's decision out to ensure that Article 50 will be has created legal certainty based on triggered no later than the end of our democratic process, and provides March as promised by the prime the legal foundations for the minister." government to trigger Article 50." FRANCES O'GRADY, GENERAL JEREMY WRIGHT, UK ATTORNEY SECRETARY OF THE TRADES GENERAL: UNION CONGRESS: "Of course the government is "Before Article 50 vote MPs must see disappointed with the outcome ... The clear plan to protect working people government will comply with the from paying the price for Brexit and judgment of the court and do all that stop rights falling behind (the) EU." is necessary to implement it." "Parliament also needs detailed proposals for engaging UK devolved arguments, it was about giving the PAUL NUTTALL, LEADER OF THE governments in Brexit talks and how people a voice, a say, in what happens UK INDEPENDENCE PARTY we keep common travel area with next." "This decision is hardly a surprise but Ireland." "The Liberal Democrats are clear, we in the end it will make no real demand a vote of the people on the difference. The will of the people will ADAM MARSHALL, DIRECTOR final deal and without that we will not be heard, and woe betide those GENERAL OF BRITISH CHAMBERS vote for Article 50." politicians or parties that attempt to OF COMMERCE: block, delay, or in any other way "The practical impact of this ruling, GINA MILLER, LEAD CLAIMANT: subvert that will." "It will embolden not the political intricacies, is what "This ruling today means that those who rail against the decision of interests business communities across members of parliament we have the people. It may give heart to those the UK. What businesses will want to elected will rightfully have the in the EU, used as they are to know is whether this ruling will affect opportunity to bring their invaluable ignoring their own people, to attempt either the terms of the government's

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approach, or the timeline that firms no one. Unfortunately for businesses 50, then it is guaranteed to be across the UK have been told to and other institutions Brexit still amendment-proof. It is not that expect." means uncertainty. Parliament simple. That is the custom and remains divided and the outcome of practice of parliament, but they can PHILIP SOUTA, HEAD OF UK the negotiations remain unknown." depart from it if they want to." PUBLIC POLICY AT LAW FIRM "The government hopes that if they "Defeat in the House of Lords would CLIFFORD CHANCE: keep the scope of the expected bill not stop Brexit from happening, but it "Today's result comes as a surprise to very narrow, to just activating Article could delay it until mid-2020."

Sturgeon raises independence spectre after court ruling

By Elisabeth O'Leary a choice that Scotland must make," EU single market and impose immi- icola Sturgeon raised the she added. gration limits when it leaves the bloc spectre of another Scot- Scots rejected independence in 2014 and has promised to take Scotland tish independence refer- but Sturgeon's ruling Scottish Na- into account in the process. endum after Britain's Su- tional Party (SNP) says Britain's deci- But Sturgeon was scornful about N sion to leave the EU last June - those pledges in the wake of the court preme Court ruled on Tuesday that the devolved assembly in Edinburgh against Scottish voters' wishes - have ruling. did not need to be consulted on trig- created the conditions for another "The claims about Scotland being an gering Brexit. independence referendum. equal partner are being exposed as "This raises fundamental issues above Sturgeon said the British government nothing more than empty rhetoric and and beyond that of EU membership," is politically obliged to consult the the very foundations of the devolution the Scottish First Minister said. devolved assemblies on exiting the settlement that are supposed to pro- "Is Scotland content for our future to European Union, regardless of the tect our interests ... are being shown be dictated by an increasingly right- Supreme Court ruling. to be worthless," she said. wing Westminster government with Tuesday's ruling said Prime Minister She said she would press on regard- just one MP (lawmaker) here," she Theresa May's government was less and present a motion in the Scot- asked. "Or is it better that we take our obliged to consult the UK parliament tish parliament to vote on the trigger- future into our own hands? on triggering Brexit. ing of Article 50, which starts the "It is becoming ever clearer that this is May has said Britain would quit the Brexit process.

Scotland's First Minister and leader of the Scottish National Party (SNP), Nicola Sturgeon, addresses the party's annual conference in Glasgow, Scotland October 15, 2016. REUTERS/Russell Cheyne

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French far-right leader Le Pen calls on Europeans to "wake up"

By Paul Carrel rench far-right leader Marine Le Pen urged European voters to follow the example F of Americans and the British and "wake up" in 2017, at a meeting of right-wing leaders aiming to oust established parties in elections this year. Le Pen told several hundred supporters in the German city of Koblenz that Britons' vote last year to leave the European Union would set in train a "domino effect". A day after U.S. President Donald Trump took office, Le Pen said his inauguration speech included "accents in common" with the message on reclaiming national sovereignty proclaimed by the far- right leaders meeting in Koblenz. "2016 was the year the Anglo-Saxon world woke up. I am sure 2017 will be the year the people of continental Europe wake up," she said to loud France's National Front leader Marine Le Pen gestures after her speech during a European applause on Saturday. far-right leaders meeting to discuss about the European Union, in Koblenz, Germany, Populist parties are on the rise across January 21. REUTERS/Wolfgang Rattay Europe. Unemployment and austerity, the arrival of record numbers of the bloc, as Britain did last June. Nations and Freedom (ENF), the refugees and militant attacks in Le Pen said if elected she would ask smallest group in the European France, Belgium and Germany have the EU to return sovereign powers to Parliament. Also at the meeting were left voters disillusioned with France and hold a referendum on the Geert Wilders, leader of the Dutch far- conventional parties. outcome of negotiations she right Freedom Party (PVV), who was Le Pen, head of the anti-European expected to follow. If the EU rejected last month convicted of discrimination Union, anti-immigrant National Front her demands, she said: "I will suggest against Moroccans, and Matteo (FN) and seen by pollsters as highly to the French people: exit!" Salvini of the Northern League, who likely to make a two-person runoff wants to take Italy out of the euro. vote for the French presidency in May, "FREE FATHERLANDS" In the Netherlands, Wilders is leading has marked out Europe as a major The far-right leaders met under the in all major polls before national plank in her programme. slogan "Freedom for Europe" with parliamentary elections on March 15. "The key factor that is going to set in the aim of strengthening ties Hailing Trump's election, Wilders told course all the dominos of Europe is between their parties, whose the meeting: "Yesterday, a free Brexit," Le Pen said. "A sovereign nationalist tendencies have America, today Koblenz, and people chose ... to decide its destiny hampered close collaboration in the tomorrow a new Europe." itself." past. "The genie will not go back into the Of Trump, she added: "His position on "Together with the parties bottle," he added. Europe is clear: he does not support a represented here, we want a Sigmar Gabriel, the leader of system of oppression of peoples." subsidiary Europe of free Germany's Social Democrats, junior In a joint interview with of Fatherlands," said Frauke Petry, partner in Chancellor Angela Merkel's London and the German newspaper leader of Germany's anti-immigration ruling coalition, joined a protest Bild published on Monday, Trump said Alternative for Germany (AfD). outside the venue. the EU had become "a vehicle for Several leading German media were Police said the demonstration was Germany" and predicted that more EU barred from the Koblenz meeting, peaceful and about 5,000 people member states would vote to leave which was organised by the Europe of took part.

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Banks put "hard" Brexit move plans into action By Anjuli Davies and Andrew MacAskill divorce from the EU. Europe ... If you have already lobal banks have begun But as they move or hire staff, rent established operations in Europe, you signalling how they will put out real estate and - crucially - build can take your time". plans into action to cope up the capital buffers of their EU HSBC says it has the licences it needs with a "hard" exit by Britain divisions that price tag will rise. for its mooted move to Paris and only G Eight major US and European banks needs to set up a so-called from the European Union. Until now, banks have considered face a combined $7.5 billion bill in intermediate holding company in varying degrees of upheaval to their the next five years if they need to France, a move that should take only British-based businesses, depending move capital markets operations out a matter of months. on whether the outcome of Brexit was of London as a result of Brexit, The bank has said it will shift staff "hard" or "soft." analysts at JP Morgan have from its markets business to Paris but But after Prime Minister Theresa May estimated. only in around two years time. said that Britain would leave the The five largest U.S. banks, on the single market, bankers have already QUIVERING OVER THE BUTTON other hand, will need to apply for begun giving more details on how The scale of the changes banks need many new licences and, in some they will adapt. to make depends on the type of cases, establish brand new entities in Bank executives will present plans to entities and licences they currently the EU right away. their boards in the coming months have in Britain and the rest of the EU. Currently they employ around 40,000 outlining where they want to relocate "I think the quivering over the button people in London, more than in the operations to and how much it will is dependent on business model and rest of Europe combined, and rely on cost, banking industry sources said. what you use the UK for," Douglas the EU "passporting" regime that The movement of jobs from London is Flint, chairman of HSBC, Europe's allows them to offer services across likely to be slow at first, with banks biggest bank, told British members of the bloc out of their British hubs. more focused on getting regulatory parliament last week. Since the Brexit vote U.S. banks have approval and installing the necessary "If you are a foreign institution talked with governments and infrastructure for new or bolstered EU hubbing into Europe from London, regulators in several major European outposts so they can continue to sell you really have no choice other than cities to look at where to base certain products and service EU customers. to think very quickly and carefully operations. HSBC and UBS have both warned they how to replicate the access to Regulators in Frankfurt have spoken could move around 1,000 jobs out of London. "All the banks are doing the non- harmful stuff first in an attempt to get ahead of the curve," a senior executive at one of Europe's largest banks said. This will focus on areas such as licence applications, and building technology platforms, according to lawyers. Some jobs could move or be created to help with this, but most banks will move the bulk of staff further down the line. "Most banks will make decisions on where to shift business by the end Q1, with initial headcounts of '100 to a few 100' to be moved," said one of the sources familiar with bank relocation plans, speaking on condition of anonymity. A senior executive at a European bank said they were willing to spend about $100 million preparing to move from A river ferry passes in front of the Canary Wharf business district at dusk in London, Britain Britain before the completion of any December 11, 2016. REUTERS/Toby Melville

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with "a significant double-digit another source familiar with banks' Carney has warned that Britain's giant number of banks" considering moving planning. Ireland's central bank has financial services sector could be to the German city, including big U.S. had over 100 enquiries from UK undermined like a wobbly wooden banks, Japanese banks and other financial firms considering moving, tower in the popular game of Jenga if European banks, according to sources Finance Minister Michael Noonan key parts of the industry shift familiar with the matter. said on Tuesday. Robert Mac Giolla elsewhere because of Brexit. Goldman Sachs was considering Phadraig, chief commercial officer of "What people still don't get is that moving some assets and operations Irish headhunter, Sigmar London is home to systemic financial to Frankfurt, sources told Reuters in Recruitment, said his firm was infrastructure and dismantling it will October. working on four projects for financial lead to higher costs of doing Senior delegations, including companies in London shifting staff to business," said another senior management level representatives Dublin, including moving 25, 80, 120 executive at a global bank. from international banks have and about 200 jobs for those projects "You need to think of it as a mega recently made trips to Frankfurt to respectively. But as banks flesh out nuclear power plant. It's a systemic scout around schools, real estate, and plans for what and where they move, matter and you need be careful at residential areas, according to Bank of England Governor Mark dismantling it."

FACTBOX Impact on banks from Britain's vote to leave the EU

lobal banks have warned European single market, ending flexibility if its UK outpost looks set to they could move thousands banks' hopes they might retain lose its ability to operate across the of jobs out of Britain to "passporting" rights that let them sell European Union once Britain leaves G prepare for the expected their services across the EU out of the bloc. disruption caused by the country's exit their London hubs. Below are The world's biggest wealth manager from the European Union, posing a comments and reports on banks has also set up a bank in Frankfurt to risk to London's status as a major about their potential Brexit plans consolidate most of its European financial centre. wealth management operations, after Leading financial firms warned for HSBC Britain's vote to leave the European months before last June's Brexit Stuart Gulliver, CEO of HSBC, Union dashed London's chances of referendum that they would have to Europe's biggest bank, said his bank being the host city. move some jobs if there was a leave will relocate staff responsible for vote, and have been working on plans generating around a fifth of its UK- CREDIT SUISSE for how they would do so for the past based trading revenue, or around Credit Suisse's Chief Executive Tidjane six months. 1,000 people, to Paris. Thiam said in September that his More details are starting to emerge bank was relatively well placed to after Prime Minister Theresa May BARCLAYS deal with the impact of Brexit and confirmed Britain would leave the Barclays Chief Executive Jes Staley that only around 15-20 percent of told BBC Radio in an interview in volumes in the investment bank Davos that the bank will keep the would be impacted. bulk of its activities in Britain after the UK leaves the European Union, LLOYDS saying that any changes to how the Lloyds Banking Group, Britain's bank operates will be small and largest mortgage lender and the only manageable. major British retail lender without a subsidiary in another EU country, is UBS considering setting up a subsidiary in Swiss bank UBS's Chairman Axel Frankfurt as Britain prepares to leave Weber said at the World Economic the European Union, a person familiar Forum in Davos in January that about with the plans told Reuters. 1,000 of the Swiss bank's 5,000 employees in London could be GOLDMAN SACHS affected by Brexit. U.S bank Goldman Sachs is Separately, Chief Executive Sergio considering moving up to 1,000 staff REUTERS/Suzanne Plunkett Ermotti said that UBS has a degree of from London to Frankfurt because of

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concerns over Britain's vote to leave MORGAN STANLEY country loses access to the single the European Union, Germany's U.S. bank Morgan Stanley has market, bank CEO Jamie Dimon Handelsblatt newspaper reported in identified many of the roles that will warned in June. "It looks like there will January, citing financial sources. need to be moved from Britain be more job movement than we hoped The bank is considering halving its following its exit from the European for," Dimon told Bloomberg TV in an Union, sources involved in the interview at the World Economic processes told Reuters. Forum in Davos in January. Morgan Stanley, which bases the bulk of its European staff in Britain, BOFA will have to move up to 1,000 jobs in Bank of America Corp said in August sales and trading, risk management, that its businesses and results could legal and compliance, as well as be adversely affected and it may have slimming the back office in favour of to incur additional costs if Britain's locations overseas, one source told exit from the European Union limits Reuters. the ability of its UK entities to conduct business in the bloc. CITIGROUP Citigroup, which has also identified roles that will need to be moved out of the UK and has a large banking unit in Dublin, will need to shift 100 positions in its sales and trading business, sources with knowledge of the matter said. REUTERS/Chip East Separately, Citigroup's European chief said the U.S bank would make a London staff to 3,000 and moving key decision on its Brexit contingency operations to New York and plans in the first half of the year and continental Europe, particularly choose from a number of potential Frankfurt, the paper reported. EU counties to relocate some Three people familiar with the matter investment banking business. told Reuters in November that Goldman Sachs is considering JPMORGAN shifting some of its assets and JPMorgan Chase & Co could be operations from London to forced to move 4,000 of its 16,000 REUTERS//Toby Melville Frankfurt. staff currently based in Britain if the

Morgan Stanley, Citi plan Brexit job moves – sources

By Pamela Barbaglia and Arno Schuetze banking unit in Dublin, will need to their services across the EU out of shift 100 positions in its sales and their London hubs. .S. banks Morgan Stanley trading business, sources with HSBC and UBS said on Wednesday and Citigroup have knowledge of the matter said. they could each move about 1,000 identified many of the roles Leading financial firms warned for jobs out of London. that will need to be moved U months before last June's Brexit A spokesman for Morgan Stanley said from Britain following its exit from the referendum that they would have to no decisions had been taken with European Union, sources involved in move some jobs if there was a leave regard to its Brexit plans. the processes told Reuters. vote, and have been working on plans "Our focus is on ensuring that we can Morgan Stanley, which bases the bulk for how they would do so for the past continue to service our clients of its European staff in Britain, will six months. whatever the Brexit outcome," he have to move up to 1,000 jobs in sales More details are starting to emerge said. "To that end, we continue to and trading, risk management, legal after Prime Minister Theresa May evaluate what changes we may need and compliance, as well as slimming confirmed Britain would leave the to make to our business". the back office in favour of locations European single market, ending A spokeswoman for Citi declined to overseas, according to one source. banks' hopes they might retain comment. Citigroup, which already has a large "passporting" rights that let them sell Morgan Stanley currently bases the

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vast majority of its European staff in going forward". bloc and apply for the relevant Britain, employing around 6,000 Investment banking roles, such as licences to be able to continue trading people there. It has relied on merger and acquisition bankers, are with the rest of Europe if passporting passporting out of London to service expected to be able to stay in rights are lost in a post-Brexit world. it clients elsewhere in the EU. London. Citigroup, which has almost Sources involved in its planning say In order to continue certain 60 percent of its European the bank may have to move 100 or so businesses such as trading European headcount based outside Britain, has people in its sales team because of securities it will need to shift those a relative advantage over most other that, though there has not yet been a operations to a licensed entity in the U.S. banks, given its Ireland banking decision on any location. regional bloc. outpost which is regulated by the "Every business unit is currently The source said that given the bank European Central Bank. discussing where to shift jobs, they already had a trading licence in However, it needs to bulk up sales won't all go to one location," one Frankfurt, it was likely to move most and trading operations within the source said. of these jobs there despite some of the city's other drawbacks. "We don't like Frankfurt but that's the only place to go," the source said. "Culturally, it's not a vibrant city". The source added that U.S. regulators were expected to discourage U.S. banks from moving to countries with a poor country credit rating such as Ireland and Spain. James Gorman, chairman and chief executive of Morgan Stanley, told analysts this week that Brexit was "a moving chessboard". "We like the UK, we like the rule of law in the UK, [and] our aspiration is to keep as much of our business there as possible," he said. "But to the extent we have to comply with, obviously, the Brexit rules, we'll be putting a headquarters somewhere in continental Europe and A view of the Morgan Stanley London headquarters at Canary Wharf financial centre in that will have some implications London, Britain June 24, 2016. REUTERS/Russell Boyce

HSBC, UBS to shift 1,000 jobs each from UK in Brexit blow to

By Pamela Barbaglia also reported that Goldman Sachs is details since on how many will go or considering halving its London where to. wo of Europe's biggest banks workforce to 3,000 and moving key "We will move in about two years time warned on Wednesday that operations to New York and when Brexit becomes effective," they could each move about continental Europe, particularly HSBC's Gulliver told Reuters at the T 1,000 jobs out of London as Frankfurt, where it could move up to annual meeting of the World they prepare for expected disruption 1,000 staff. Economic Forum. caused by Britain's exit from the A Goldman Sachs spokeswoman in And in another potentially damaging European Union. Frankfurt said the bank does not blow to London's status as Europe's UBS Chairman Axel Weber said that recognise the numbers in the main financial centre, UBS's Weber about 1,000 of the Swiss bank's Handelsblatt report and that it has told the BBC in Davos that 1,000 staff 5,000 employees in London could be yet to make a decision on the matter. working in businesses that would be affected by Brexit, while HSBC Chief Leading financial firms warned for hit by Britain losing its 'passport' to Executive Stuart Gulliver said his bank months before Britain's June sell financial services in Europe would will relocate staff responsible for referendum on European Union be affected. generating around a fifth of its UK- membership that they would move Other banks are expected to based trading revenue to Paris. jobs out of the country if there was a announce more concrete plans for Germany's Handelsblatt newspaper vote to leave but have set out few how they will adapt to Brexit in the

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coming months after Prime Minister houses those roles, made a $384 person familiar with the plans. Theresa May confirmed in a speech on million profit in the UK in 2015, a The shift of jobs will be a blow to the Tuesday that Britain would leave the company filing showed. City of London, which has been European single market. In 2016 UBS set up a bank in lobbying since the Brexit vote for Frankfurt to consolidate most of its financial firms in Britain to retain the FRANFURT SUBSIDIARY European wealth management EU 'passporting rights' that allows Goldman staff moving to Frankfurt operations in an effort to conserve them to sell their services across the would include traders and managers capital and simplify its structure. bloc. But passporting is unlikely to responsible for regulation and Meanwhile, Lloyds Banking Group is continue with Britain outside the compliance, financial sources told considering setting up a subsidiary in European single market and Handelsblatt. The bank is setting up a Frankfurt, though no final decision companies say they are now likely to new subsidiary in Frankfurt to bring has been taken, according to a press ahead with plans to move staff, European operations together. even though May said she would try to Back-office personnel would move to negotiate some form of market Warsaw and investment bankers who access. The City's best hope will be for advise French and Spanish the government to agree a transitional companies would move to those arrangement whereby financial countries, Handelsblatt reported, businesses can continue to operate while trading staff who develop new out of Britain across the EU for a products would move to New York. number of years after Brexit, in the HSBC, Europe's biggest bank, is at an hope that a favourable access deal is advantage to its major U.S. rivals as it achieved in the interim. already has a large subsidiary in Paris "We would like to see a transitional that holds most of the licences agreement announced as soon as needed by an investment bank, possible," Mark Boleat, policy meaning that Gulliver has been able chairman at the City of London to set out more detailed plans. Corporation, said in a statement after It is expected to move about 1,000 May's speech. staff involved in trading products, HSBC shares closed 1.8 percent up, such as European stocks, that are against a 0.2 percent fall in the regulated by the EU. HSBC's global broader European banks index. UBS REUTERS/Luke MacGregor banking and markets division, which shares were down 2.1 percent.

British banks' optimism hits crisis-era low on Brexit uncertainty

ptimism about the 90 percent of banks surveyed said Kail also said that greater clarity on business environment for preparing for the impact of Britain's the UK position on Brexit from the Britain's financial services exit from the European Union was Prime Minister's speech this week was O firms fell for a fourth their top challenge. welcome, not least a commitment to a consecutive quarter, according to a "Uncertainty has contributed to the period of phased implementation. survey published on Monday, the low levels of optimism reported by The survey revealed a more optimistic longest decline since the global many financial services companies, outlook for hiring, with 18 percent of financial crisis. particularly by the banks," Andrew financial firms saying they had The latest quarterly survey of 103 Kail, Head of Financial Services at increased employment in the period financial services firms by business PwC, said in the report. Banks have compared with 10 percent showing a lobby CBI and consultancy PwC found begun signalling how they will put decrease. IT was the biggest area for sentiment about Britain's overall plans into action to cope with a new jobs. The survey also said firms business climate fell the most since "hard" exit by Britain from the EU, considered increasing their dialogue December 2008, with banks after Prime Minister Theresa May said with regulators as the biggest priority especially pessimistic. Britain will leave the single market. as Britain negotiates its EU exit.

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Bankers expect Britain to back Brexit transition calls

By Carmel Crimmins A source familiar with the talks in Moynihan told Reuters that May had op bankers are confident Davos, which included executives made it clear in her speech on that British Prime Minister from Goldman Sachs and Morgan Tuesday that she wanted to get Brexit Theresa May's government Stanley, said May had been receptive right by allowing enough time for will support a transition to their points on transition. implementation, adding that banks T "All the banks want a multi-year now need to persuade the EU that period of several years for the financial sector to cope with Britain's agreement. She seemed to economic growth could be at stake exit from the European Union. understand that. They talked about without a transition. May met the heads of major U.S. changing the name from 'transitional' "We as an industry have got to get financial firms at the World Economic arrangement to something that was that message across because you Forum in Davos on Thursday to less open for negotiation," the source don't want to disrupt the discuss their concerns. PM confirmed said. economies that are now starting to on Tuesday that Britain would quit the Brexit minister David Davis said on grow a little bit, you don't want to single market when it exits the EU, Wednesday companies will have a disrupt the free flow of capital, you although she said she would back an maximum of a two-year transitional don't want to disrupt people's lives," "implementation" period. deal to help smooth Britain's exit Moynihan said. Meanwhile, Financial firms have accepted that from the EU after 2019, although May international and British banks, they will lose their 'passporting' rights said Tuesday the length of any such insurers and asset managers are to freely sell services across the 28- deal may vary for different industries. seeking a bespoke deal with Europe nation bloc after Brexit, but want That could fit with what British that would give 'mutual recognition’ more time to adapt to whatever terms bankers are calling for. to as many of their products and are agreed with the EU. "We want a standstill arrangement services as possible, McFarlane "I think the government does [support for three years, that would kick in said. it] because I think they understand after the government's negotiations And while UBS and HSBC warned that the complexity of this," Barclays on Brexit are finalised," McFarlane they could each move about 1,000 Chairman John McFarlane, who is said. jobs out of London, Barclays will keep also chair of financial industry lobby the bulk of its activities in Britain after group TheCityUK, told Reuters earlier GROWTH AT STAKE Brexit, its chief executive Jes Staley on Thursday. Bank of America chief executive Brian told the BBC on Thursday.

The Canary Wharf financial district is seen at dusk in east London, Britain November 7, 2014. REUTERS/Toby Melville

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In Davos, PM May unveils vision for global Britain post-Brexit

By Elizabeth Piper and Noah Barkin "Our decision to leave the European follow, which was her own, and that Union was no rejection of our friends she was great on Tuesday," Barbara rime Minister Theresa May in Europe, with whom we share Judge, chairman of Britain's Institute unveiled her vision for common interests and values and so of Directors, told Reuters. Britain after Brexit on much else. It was no attempt to She credited May with calming P Thursday, describing its become more distant from them, or business fears of falling off a cliff edge future role as a defender of free trade to cease the cooperation that has into uncertain trading conditions and globalisation in a speech helped to keep our continent secure when she explained that she wanted intended to ease concerns among the and strong." the phased implementation of any global business elite. deal. In her first appearance at the World CONCILIATORY TONE "I believe the most significant part of Economic Forum in Davos, where the May said there would be times of the speech was the wording that it's world's business elite congregates in uncertainty after Britain triggers not going to be transitional but a the Swiss Alps, May pressed her Article 50 of the EU's Lisbon Treaty phased process of implementation mantra that Britain would become to start some of the most because that shows it's not a cliff edge more global after voting to leave the complicated talks the country has - it's learning how to feel comfortable European Union. Just two days after waged since World War Two, but in the new world.” she warned the EU that no deal was spoke of her confidence for the Even some of May's critics praised better than a bad deal, May sought to future. Tuesday's speech. Mark Malloch- soothe ties with the bloc and played It was a more conciliatory tone than Brown, a former Labour government to her audience, a mixture of business the one heard in her speech on minister and an independent member and political leaders, by promoting Tuesday, when she warned that of Britain's upper house of parliament, Britain's investment advantages. Britain could change its economic described it as "well-managed". "I want to explain how ... the United model if shut out of access to the "I think it certainly quieted the critics Kingdom - a country that has so often single market, echoing comments by who said she had no plan," he told been at the forefront of economic and her finance minister that the Reuters, adding that only time would social change - will step up to a new government could cut taxes to tell whether May could pull off the leadership role as the strongest and maintain competitiveness. complicated negotiations. most forceful advocate for business, May's comments drew applause in One Davos attendee added: free markets and free trade anywhere Davos, but most of the discussion "She says all the right words, the in the world," she told a packed focused on Tuesday's speech. question is whether anyone believes congress hall. "I thought she had a very hard act to them?"

Britain's Prime Minister Theresa May attends the World Economic Forum (WEF) annual meeting in Davos, Switzerland January 19. REUTERS/Ruben Sprich

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Britain warns EU: we'll find ways to compete if no trade deal

By Stephen Adler and Elizabeth Piper

ritish finance minister Philip Hammond warned the European Union on B Thursday that Britain would find other ways to remain competitive after Brexit if it did not strike a comprehensive trading deal with the bloc. At the World Economic Forum in Davos, Switzerland, he stuck closely to the government's message that it wants to explore ways with the EU to ensure that decades of close ties are not broken - saying with goodwill, anything was possible. But Hammond, who is keen to show Davos that Britain is "open for Britain's Chancellor of the Exchequer Philip Hammond walks through Downing Street in business", said while the government London,Britain January 18. REUTERS/Neil Hall/Files did not want to leave the economic mainstream and trigger a race to the complicated talks since World War wanted to explore options to find ways bottom on tax, the decision was "not Two by the end of March. in which businesses - including the entirely in our gift". The prime minister said in a speech financial industry, which fears losing "We have to remain competitive. The this week that Britain would quit the the right to sell their services in the best way to do that is to have a EU single market when it leaves the bloc - could trade freely. comprehensive trading relationship European Union. "Obviously we can't be in the full with the European Union, our closest She threatened to withdraw the bloc customs union because the neighbours," the finance minister, without any agreement with Brussels restrictions that implies goes beyond known as the Chancellor, told in place, unless she failed to win a the political imperatives from a UK Reuters. good deal, in what aides say was a point of view," said Hammond, who "But if we can't achieve that then we speech aimed at a domestic had campaigned to stay in the EU will have to find other ways to audience. British officials however ahead of the Brexit referendum in maintain our competitiveness, now hope to reassure businesses in June last year. because our first obligation of Davos that there will be prospect of "But we have a lot of reasons on both government is to make sure that our falling off a "cliff edge" into uncertain sides of this discussion to want to try people are able to maintain their trading conditions. and maintain the most frictionless standard of living." On Wednesday, two of the world's border system possible," he said, Hammond later said that this was not biggest banks, UBS and HSBC, said pointing to fresh produce imports a threat, but German Finance Minister they could each move about 1,000 every day, which neither side would Wolfgang Schaeuble said Britain jobs out of London to prepare for want to disrupt. should not try to gain competitive Brexit disruption. And he said Britain would always be advantage by cutting corporate tax In her speech on Tuesday, May did an attractive investment destination rates after the G20 leading economies offer some comfort to those who because of "the high level of agreed not to do so in 2015. want to see Britain retain close ties confidence in our institutions". Recalling a pledge by Prime Minister with the EU, saying that she is aiming British economic growth would slow Theresa May to make Britain a global to secure an agreement that "may this year, but the government did not player post-Brexit, Schaeuble said: "A take in elements of current single expect to have to borrow more to keep truly global economy has to stick to market arrangements in certain the economy afloat, said Hammond, what's been agreed globally." areas" and to have a customs adding that Britain was still a haven agreement with the EU. for foreign talent and entrepreneurs. FAR APART "We want to go on being that kind of Britain and the EU have stuck fast to 'WELCOMING SOCIETY' open, welcoming society which people their opening gambits as May Asked how such an arrangement choose as a venue to do their prepares to trigger some of the most could work, Hammond said Britain business," he said.

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UK launches interventionist drive for post-Brexit industrial revival

By William James PRODUCTIVITY PUZZLE government's agenda, ranging from The plan aspires to distribute wealth waste management firms to builders ritain's government on more evenly, following decades of of new nuclear plants. Monday unveiled a new industrial decay in parts of Britain. But not all sectors felt they would interventionist approach to The economy's narrow base has been benefit. A consumer goods industry B rebalance its heavily blamed for a mood of executive, who declined to be named, services-based economy for the post- disenfranchisement that drove many said consumer goods were very far Brexit era, in a break with traditional voters to back Brexit. down the priority list. Conservative laissez-faire economic It aims to boost Britain's productivity, "The high-skilled and high-paid, that’s policy. which has long lagged European what drives economic spending and Prime Minister Theresa May's rivals Germany and France. It cited growth. Pharmaceuticals, heavy "Modern Industrial Strategy" demands closer collaboration in key industries in exchange for government support, aiming to increase productivity, reinvigorate industrial production and stimulate investment in technology and R&D. The focus on industry and the shift to a governmental hands-on approach challenges the laissez-faire ideology championed by former prime minister Margaret Thatcher. "Underpinning this strategy is a new approach to government, not just stepping back and leaving business to get on with the job, but stepping up to a new, active role that backs business," May wrote in a consultation document on the policy. May asked businesses to work together to tackle industry-specific challenges, citing examples of successful collaboration that have helped attract overseas investment from the likes of carmaker Nissan, and enabled aerospace firms such as Prime Minister Theresa May holds a regional cabinet meeting in Runcorn, Cheshire, as she BAE Systems to develop a competitive launched her industrial strategy for post-Brexit Britain with a promise the Government will edge. "step up" and take an active role in backing business, Britain, January 23. REUTERS/ In return she pledged to reciprocate Stefan Rousseau with "Sector Deals" that address regulatory barriers, look at how trade and investment deals can be used to the success of targeted government industry, IT – all those sectors are increase exports, and support the intervention in countries including always going to be the ones that are creation of new institutions to provide the United States and South Korea. more favoured," the executive said. leadership, drive innovation or boost The outline of was set out in a "Green skills. The government said early work Paper" inviting views from industry BACK IN FASHION had been done on deals for a number on the government's objectives. Since coming to office weeks after of industries: life sciences, ultra-low The government listed 10 strategic Britain's vote to leave the EU last year, emission vehicles, nuclear and pillars behind its strategy such as May has pushed the once- creative industries. But it said it would skills development and improved unfashionable concept of industrial work with any sector that could procurement. strategy to the top of her agenda, "organise behind strong leadership to The publication drew positive creating a new government address shared challenges and responses from businesses looking to department to lead the project, and opportunities". push their industries to the top of the chairing a top-level cabinet

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committee on the subject. market, and seeking a free trade rival and pro-EU Liberal Democrat Britain's impending exit from the EU agreement with the EU instead - a party. May presented the full threatens to undermine the financial path critics have described as a "Hard proposals, including plans to boost services sector, with several banks Brexit" that would undermine the the teaching of technical skills and planning to shift thousands of jobs industrial strategy. "It’s like the mathematics, and a 556-million abroad because they fear they will manager tying their team’s bootlaces pound boost for infrastructure lose access to the EU market. together while telling them they have projects, at a specially convened May said last week that Britain would a plan to win the match," said Don cabinet meeting in northwest be withdrawing from the single Foster, business spokesman for the England.

BlackRock hires former UK finance minister Osborne as adviser

By Trevor Hunnicutt and William James politics, Chinese economic reform, from the committee said. and the impact of low investment BlackRock managed $5.1 trillion at ormer British finance yields and other trends on retirement Dec 31. Osborne's appointment minister George Osborne, planning, according to the continues a long tradition of high- who lost his job after statement. profile political appointments to F Britain's vote to leave the The role was approved by the British financial firms. Former prime minister European Union, will join BlackRock government's Advisory Committee on Gordon Brown sits on the global Inc as an adviser next month, the Business Appointments on the advisory board at investment manager world's largest asset manager said on condition that Osborne did not draw Pacific Investment Management Co Friday. on privileged information he received (Pimco) as does former U.S. Federal Osborne, 45, became the country's as finance minister and that he Reserve Chairman Ben Bernanke. youngest finance minister in more refrain from personally lobbying the Brown's predecessor Tony Blair joined than 100 years when he was government on behalf of BlackRock JPMorgan Chase & Co in 2008 shortly appointed in 2010 to spearhead an or its clients until July 2019. after leaving office. austerity drive by the Conservative-led "It will be written into your contract Former British foreign minister government following the global that you will not be expected to be William Hague was appointed senior financial crisis. He was widely involved in any work for, or seek work adviser to Wall Street bank Citigroup considered a likely future prime with, the UK Government," a letter Inc earlier this week. minister. A prominent campaigner for Britain to remain in the EU, Osborne remains a member of parliament. Osborne will work as a part-time senior adviser to the BlackRock Investment Institute, an arm of the asset manager that serves as a think tank on investment strategy. In its recent outlook for 2017, the group warned about "a forest fire of populism around the world," and said that it may become increasingly hard to generate high returns from investing. Osborne resigned as finance minister shortly after the June "Brexit" vote that roiled markets. "George has a unique and invaluable perspective on the issues that are shaping our world today," BlackRock Chief Executive Larry Fink said in a statement. Former chancellor George Osborne smiles during a Northern Powerhouse Partnership Osborne will advise on European think tank meeting in Manchester, Britain September 16, 2016. REUTERS/Phil Noble

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Britain can discuss but not seal trade deals while still in EU

ritain can discuss but not timing of the exit was called into like the idea of Britain negotiating seal bilateral trade deals question on Tuesday when a top trade agreements on its own while while it remains a member court ruled she must first seek Brexit has not materialised. B of the European Union, the approval from parliament. The line has been echoed by Italy's deputy head of the bloc's executive, "It's a very simple legal situation," Europe minister, Sandro Gozi, who is which will lead the technical said Timmermans, First Vice- also attending a meeting of EU negotiations on Brexit, said on President of the European ministers and officials in Malta: "It is Tuesday. Commission. clear that trade is an exclusive Frans Timmermans' words raised the "Everybody can talk to everyone, but competence (of central EU prospect of obstacles and delays for you can only sign a trade agreement institutions on behalf of member Britain's plan to pursue trade pacts with a third country once you have states). As long as UK remains with the United States and other left the EU. You can't do that before," member of the EU, it should respect nations as it prepares to leave the Timmermans told reporters. the EU law." bloc. His comments seemed slightly less EU regulations give both sides two British Prime Minister Theresa May rigid that those of his boss, the years from the moment the exit clause had promised to start the divorce Commission's President Jean-Claude is triggered to negotiate and agree the proceedings in March - though the Juncker, who said last year he did not divorce before it comes to fruition.

Brexit is opportunity to pull Europe closer together -EU official

he European Union Parlia- wants to start the process by the end or the City of London, Europe's big- ment's chief Brexit negotia- of March. gest financial center. tor on Monday said Britain's However, Britain's Supreme Court will "It is clear the transition needs to be T decision to make a clean rule on Jan. 24 on whether parlia- limited in time. I have seen temporary break from the EU was an opportunity ment must first agree to triggering things become eternal," Verhofstadt to reform Europe and avoid a further said, adding: "What is far more im- breakdown in ties between its remain- portant is a clear triggering of 50, a ing member states. clear proposal by the British govern- Former Belgian Prime Minister and ment and how they see the partner- member of the European Parliament ship in the future." Guy Verhofstadt also said the election "We have to see if they ask for a free of U.S. President Donald Trump, and trade agreement. It could be some- what he views as Washington's move thing different," he said. toward more protectionism, is a wake- Verhofstadt is working to get Parlia- up call for the EU. ment a seat at the negotiating table "The Brexit discussion is a good op- rather than be consulted before and portunity not only to discuss and ne- after each round of talks. gotiate a new agreement, a new part- "We have to conclude before the Euro- nership with Britain, but also to fix pean elections of 2019," he said, reit- that now it is time to have a real gov- erating that Britain will not be able to ernment in Europe," Verhofstadt said choose policies allowing it to fare bet- in an interview with Reuters in New ter by being outside of the EU instead York while promoting his new book: of being a full member. "Europe's Last Chance." Rather than retreat and fracture, Eu- In June, Britons voted 52-48 percent rope should create a political and de- to leave the EU, triggering a change REUTERS/Francois Lenoir fense union, and unify its common of government leadership and the market across more industries and appointment of Theresa May as Prime Article 50, which formally starts Brit- service sectors, Verhofstadt said. Minister. On Jan. 17 May said Britain ain's two-year divorce process. "It is a wake-up call," he said, driven will leave the EU's single market Verhofstadt said it was "far too early" by "Brexit, and amplified by the elec- when it exits the European Union. She to speculate on the impact for Britain, tions in the United States."

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In generation shift, Sinn Fein names O'Neill as N.Ireland leader

By Amanda Ferguson . than 30 years and its leader in the inn Fein named Michelle Outgoing Health Minister O'Neill, Irish Republic, where it is a growing O'Neill to succeed Martin who turned 40 this month, was the force, has also said he is preparing to McGuinness and lead the first woman to serve as mayor of her make way, as the former political Irish nationalist party into local council area before being wing of the IRA broadens its appeal to S elected to the assembly 10 years ago. voters. Northern Irish elections in March, marking a shift towards a generation Her father, a former Sinn Fein Deputy leader Mary Lou McDonald is not directly involved in decades of councilor, was jailed during the favourite to succeed him. conflict. conflict. O'Neill faces the task of repairing McGuinness, a former Irish relations with the pro-British Republican Army (IRA) commander Democratic Unionist Party, with turned peacemaker, bowed out of whom Sinn Fein led the British frontline politics last week, saying province's power-sharing devolved illness and Northern Ireland's current government for a decade before its political crisis had led him to step collapse last week. down several months earlier than The March 2 election will be followed planned. by renegotiations on the terms of He was also deputy First Minister of power-sharing to avoid a return to Northern Ireland. direct rule from London as Britain "This is the handover of a primary begins talks to leave the European leadership position from my Union. Sinn Fein has called for generation, from Martin's generation, Northern Ireland to be given a special to another generation," Sinn Fein designated status within the EU once President Gerry Adams told a news Britain leaves, after the majority of the conference. province voted against Brexit. The O'Neill was 21 when she began her DUP backs making a clean break from political career as an advisor at the EU. Northern Ireland's devolved assembly "The British government is clearly on in 1998, the year the Good Friday a collision course with the EU in which REUTERS/Clodagh Kilcoyne peace agreement was signed, largely our economy and peace agreements ending the bloody period of "The are regarded as collateral damage," Troubles". Her appointment by the party's O'Neill said, after embracing McGuinness was Sinn Fein's chief leadership also raises the prospect McGuinness whom she described as a negotiator in the peace talks between that Sinn Fein could soon be led on political giant. Catholic nationalists seeking a united both sides of the Irish border by "We must defend the democratic Ireland and Protestant pro-British women from a younger generation. mandate of the people to remain unionists wanting to remain in the Adams, the party's president for more within the EU."

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