Please see below for today’s update on key Brexit news items:

  • Günther Oettinger, the EU budget commissioner, has warned that the UK’s departure from the EU will leave the bloc with a budget shortfall of at least €10 billion, amounting to an estimated 16% of the budget. He said that the EU must find new money to fill the gap, or spend less, with options including less generous payments to farmers or a tax on financial transactions. (BBC)
  • Claude Moraes, London Labour MEP and chairman of the European parliament’s civil liberties committee, has said that the UK offer on citizens’ rights has introduced a number of unexpected flashpoints into the negotiations. He noted that the mandatory nature of the British requirement for 3.2 million EU nationals in Britain to apply for biometric ID residence documents declaring their settled status is likely to face tough opposition from the EU’s chief negotiator, Michel Barnier. The UK offer makes clear that those EU nationals who do not apply to the Home Office within two years of Brexit for “settled status” and the biometric residence document could lose the right to remain in Britain. (The Guardian)
  • London-based insurer MS Amlin will set up an EU base in Brussels, in preparation for its potential loss of passporting rights after Brexit. The firm already has offices in Brussels and Antwerp, but will now make its Brussels office the headquarters for its EU business. It joins several other insurance firms who have announced plans to relocate their EU operations: Lloyd’s also plans to move to Brussels, while AIG, RSA and Hiscox will move to Luxembourg. Beazley and Chaucer have both chosen Dublin. (Financial Times)