EU’s Juncker rejects Britain bid to stay in parts of single market

Bloomberg

European Commission President Jean-Claude Juncker rejected a key plank of the UK’s post-Brexit blueprint, saying that Britain can’t stay in “parts” of the bloc’s single market. Still, he said he would work “day and night” for a divorce deal, boosting the pound.
The pound erased losses as investors focused on the positive tone of Juncker’s comments. But his message about what kind of future relationship the UK can expect with the bloc was unchanged. Speaking at his annual “State of the Union” address to EU lawmakers, he ruled out UK Prime Minister Theresa May’s plan to stay in the single market for goods while going it alone in services.
“The UK government must understand that a country leaving can’t be in the same privileged state as a member,” Juncker said. “If you leave the union, you are of course no longer part of our single market, and certainly not only in parts of it you choose.”
His comments add to the obstacles facing May’s plans for managing the withdrawal of the UK from the EU and agreeing on the fundamentals of the future relationship between the two sides.
Juncker reiterated that he agreed with May’s assertion that the basis of the two sides’ post-Brexit relationship was an “ambitious” free-trade deal. But this falls short of the close economic ties set out in May’s “Chequers” plan.
The EU “stands ready day and night to reach a deal,” Juncker said.
“The UK will always be a very close neighbour and partner in political, economic and security terms.”
Juncker also warned that the EU would stand by its commitment to prevent the emergence of a hard border on the island of Ireland, the biggest remaining issue in negotiations on the UK’s withdrawal.
“It’s Brexit that’s making the border more visible in Northern Ireland, not the EU,” Juncker said.
“That’s why we want to find a creative solution that prevents a hard border.”