• Liam Fox: Customs union ‘would not deliver Brexit’ whilst conceding that no Brexit trade deals had yet been signed (BBC): The international trade secretary made the comment in relation to a suggestion that the UK could agree a permanent customs arrangement with the EU. By staying in a customs union, the UK would “have to apply European trade law without having a say in how it’s made” and apply a common external tariff, which would “restrict our ability to make agreements outside the European Union’s ability to do so,” he added. Separately, he conceded that no post-Brexit trade deals have been confirmed, saying they depended on whether other countries were willing to “put in the work”. The Department for International Trade said some deals are at an advanced stage, but none have been rolled over so that they will cover the UK post-Brexit. In 2017, Mr Fox predicted that the UK could “replicate the 40 free trade agreements” the EU has around the world before it left the bloc.
  • Senior MPs intensify efforts to block no-deal Brexit (FT): Supporters of two factions determined to stop a no-deal Brexit — one led by Nick Boles, the former Conservative minister, and another by Dominic Grieve, the former Tory attorney-general — held talks at Westminster on Thursday. Their aim is to find a common plan that could be voted on by MPs on January 29, when the House of Commons is due to debate Mrs May’s Brexit plan B. “Ruling out no-deal is the one position that could easily unite the vast majority of MPs,” said Wes Streeting, a backbench Labour MP. “It’s going to be a real iceberg, which could cause a schism in the party,” said one Tory MP, referring to Mr Boles’s effort to stop a no-deal Brexit. The MP added that there would be pressure for Conservative whips to allow a free vote on Mr Boles’s plan, given the strength of feeling in the Commons. Eurosceptics Tories see his latest plan as a disguised effort to push membership of the EU single market and customs union. Supporters of this so-called Norway-plus plan— also dubbed Common Market 2.0 — claim they have the support of about half the cabinet. Mr Boles’ plan, which is set to be tabled in the Commons on Monday, would give the government until early March to win MPs’ backing for a Brexit plan B. If parliament had not approved the plan by then, the government would be under a legal obligation to seek an extension to Article 50, the legal framework under which the UK is supposed to leave the EU on March 29. The Labour leadership has not ruled out supporting Mr Boles’s plan; its backing would make it very likely to secure approval by MPs.
  • Eurosceptics threaten government to stop customs union (FT): Eurosceptic MPs are threatening to abstain or vote against government business if the prime minister pursues a softer Brexit with the support of Labour. In those circumstances a group of about 40 Eurosceptic MPs would be prepared to vote down successive pieces of non-EU related legislation so that government “effectively grinds to a halt”. “There could be Armageddon”, said one Brexiter. “She’s got to realise some of us might just not back down on all of this if she goes for a customs union.” The issue of bolting on a customs union to Mrs May’s deal has risen up the agenda in recent days because of the possibility it could help deliver the support of Labour, which has called for a permanent customs union since 2017. But while a customs union could reduce the obstacles to goods trade with the EU after Brexit, it would also constrain Britain from striking comprehensive trade deals of its own — and is fiercely opposed by Brexiters. Speaking on the BBC’s Question Time on Thursday night, prisons minister Rory Stewart suggested that if other parties were “serious” about wanting a Brexit deal “then of course we can shift red lines”.
  • European Commission says Britain must hold European elections if no Brexit before 2 July 2019 (Reuters): Commission spokesman Margaritis Schinas told a regular news briefing that the EU executive arm had not received any request from London for an extension of the March 29 deadline to leave the EU and therefore such a discussion was theoretical. “We … as the guardian of EU treaties, suggest caution with any suggestion that the right of EU citizens to vote in the European Parliament elections, according to the rules that are applicable, could be called into question,” Schinas said. “We have a legally composed European Parliament which requires directly elected MEPs from all member states at the latest on the first day of the new term of the new parliament, which this time is the second of July,” he said.
  • Britain can delay Brexit without holding European elections (FT): The European Parliament’s legal service has advised the assembly that Britain can extend its EU membership beyond the summer of 2019 without taking part in European elections or undermining the European Parliament. “The possibility for the European Parliament to be validly constituted following the 2019 elections would not be affected by a potential failure by the UK to organise elections,” the paper states, according to a copy leaked to the Financial Times. Without elections, the UK’s existing MEPs would remain until the new parliament was put together on July 2. In the new assembly, Britain would not have any seats. The other member states would have the same number of MEPs as now, with the chamber being reorganised only once Britain had left the EU.
  • Brexit: High-profile Germans urge UK to stay in EU (BBC): A letter published in The Times, and signed by 31 prominent people in German society including Annegret Kramp-Karrenbauer – leader of the Christian Democratic Union (and likely successor to Angela Merkel) – and the Chief Executive of Airbus. The letter said “Without your great nation, this Continent would not be what it is today,” adding that the UK had helped define the European Union as a community of “freedom and prosperity”. “This we, as Germans, have not forgotten and we are grateful.” The signatories said that they “respect the choice” of British people who want to leave the EU and, if the country wants to leave for good, “it will always have friends in Germany and Europe” But they said the choice was not irreversible and “our door will always remain open”.
  • Sainsbury’s-Asda case shows UK merger review deadlines need Brexit rethink, says Judge (MLex): Judge Peter Roth said merger review deadlines for complex deals need an urgent rethink given an unexpected upsurge in numbers after Brexit. Judge Roth said Asda’s and Sainsbury’s unprecedented successful challenge against the UK competition regulator’s timetable to review their planned merger had highlighted the difficulties created by rigid statutory deadlines. He suggested merger reviews in the UK should be overhauled to provide a similar flexibility to that available under the current EU regime.
  • UK is likely to delay Brexit and a referendum is possible, Farage says (Reuters): “I think, I fear that the House of Commons is going to effectively overturn that Brexit. To me, the most likely outcome of all of this is an extension of Article 50,” Farage told Sky. “There could be another referendum.” “The remain side is well funded, well organised. They are getting ready for another referendum. It would negligent of the Eurosceptics not to do so,” Farage said. When asked about the future of the United Kingdom Independence Party which he once led, he said it was “unsalvageable” so he would need a different “vehicle”.