The Prime minister’s top adviser, Dominic Cummings, has come out today pushing for state aid to be used, to boost the British economy as the British government sees fit in the post Brexit transition period.
If this were to become UK policy, the EU chief negotiator would find himself in a tricky situation. Mr Barnier is still pushing for a “level playing field” mechanism to be tied into any future trade agreement with the UK.
This new policy that Dominic Cummings is pushing would single-handedly scupper Mr Barniers plans in the current talks.
This “Level Playing Field” is an integral part of the EU plan, as it would stop British businesses receiving subsidies from the UK government that gives them an advantage over firms in the EU.
Mr Cummings insists that the UK should be able to use State aid as the government sees fit, without having oversight from a third entity.
Dominic states: “The current plan is an odd combination of reserving state aid for control from London but then agree to a free-for-all,” a source told the Financial Times.
“They just want to be able to bung money at things and do not want the UK internal market legislation cutting across that.”
In the coming weeks, Boris Johnson will have some big decisions to make. Leave the EU on WTO or backdown in critical areas to gain a deal with the EU.