• EU negotiators are bracing themselves for a “big crisis” over Brexit soon after this week’s UK election, including a possible walkout as early as the summer or autumn. Alarmed by an election campaign that has stoked up tensions between UK and continental European leaders, Brussels is hoping for reassurances over Britain’s negotiating team and answers on whether the UK will reject outright the EU’s divorce-first timetable for talks. The negotiations could dominate the new British government’s time in office. The European Commission is expected to make contacts with London to organise the talks within days of the election on June 8. A formal negotiating round is planned for June 19 or 20, a week that ends with an EU summit on the anniversary of the Brexit referendum. (FT)
  • A global financial trade body has said it has “grave concerns” over EU plans to force the relocation of the €930bn (£810bn) per day clearing business from London to the EU after Brexit. The Futures Industry Association, warned on Tuesday that it “strongly believes” that moving the clearing of transactions denominated in euros would be “severely detrimental to the economic interests of the EU”. It would “fragment these markets, raise costs for end users, and weaken the stability of the financial system, and we therefore oppose such a policy”, the FIA said. (Independent)
  • British households are cutting back as the Brexit effect on the pound continues to raise living costs, according to a clutch of reports that show shops, car dealerships and other consumer-facing businesses coming under pressure last month. Uncertainty about the outcome of Thursday’s election was also cited as a factor as the reports showed a drop in retail sales, a slowdown for the vast services sector and a fall in new car sales last month. They provided the latest signs that while manufacturers have picked up steam in recent months, those firms that rely on household spending have struggled, boding ill for the UK economy’s overall prospects this year. (Guardian)
  • Nick Clegg has become the first senior British politician to back plans for Britons to keep EU citizenship after Brexit if they wish – calling the idea “very attractive”. The next British government should work with Brussels to allow people to retain “a more meaningful connection with the European Union”, the former Liberal Democrat leader said. The call came as Mr Clegg said Theresa May – if she wins the election – will be to blame if the Brexit negotiations collapse soon after they start in less than two weeks’ time. (Independent)