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

  • The European Union’s chief Brexit negotiator Michel Barnier has reassured members of the Irish parliament that the EU will fight to ensure there is no return to a hard border with Northern Ireland. However he suggested that keeping the border free of controls could be complicated as “customs controls are part of EU border management. They protect the single market. They protect our food safety and our standards”. (Telegraph)
  • Guy Verhofstadt, the European parliament’s Brexit coordinator, has said that MEPs will veto any Brexit deal that fails to uphold the rights of EU citizens. He also encouraged EU leaders to think about giving special privileges such as residency rights, the right to vote in European elections and consular protection to British nationals after Brexit. (Guardian)
  • The European Commission has denied that Jean-Claude Juncker is trying to get David Davis fired by allowing negative briefings about him. David Davis claimed that Jean-Claude Juncker was deliberately trying to undermine him by leaking stories such as the report in the German newspaper Frankfurter Allgemeine Zeitung (FAZ) that following Jean-Claude Juncker’s dinner with Theresa May and David Davis, “the visitors wondered whether Davis would still be in charge of the negotiations after the election” as a result of comments David Davis made to Theresa May during the meeting. David Davis also indicated that he hoped to get an agreement on the status of EU nationals and Britons living in Europe as early as September. (Telegraph)
  • The Bank of England has warned that the impact of Brexit will contribute to a dramatic drop in real-terms pay this year. Mark Carney predicted that inflation will be higher than pay growth, noting that although it was “not all because of Brexit” firms are worried about trading prospects outside the EU and are “unwilling to raise wages at a faster pace until they have more clarity about future costs and market access”. (Independent)