The public mood has also been shaken by a wave of terror attacks in recent weeks.
– Summer – Negotiations on the Brexit deal expected to continue in Brussels, with the Davis and Barnier teams meeting for one week in each month, before returning to base to report back and develop their positions.
How the negotiations progress will be monitored closely by investors and business leaders.
Pressed over his own party’s stance on Brexit, Mr McDonnell said: “Once you leave the European Union, formally you are outside the single market”. The pound has fallen about 14 percent against the dollar since the June 23 referendum, pushing up inflation even as the economy shows signs of slowing.
“I want to reiterate at the outset of these talks that the United Kingdom will remain a committed partner and ally of our friends across the continent”, Davis said. “A deal like no other in history”, Davis said in a statement as he headed into the talks.
She had campaigned for voters to give her a mandate to push through her “hard” Brexit plans.
When asked if a deal was in the making, DUP leader Arlene Foster told reporters in Dublin: “I think you know it takes two to tango and we’re ready to dance”.
Mr Hammond appeared to kick the government’s 100,000 net migration target into the long grass, saying the focus after Brexit would be to “home-grow the skills we need” before seeking to significantly cut the number of workers entering the UK.
European Union officials acknowledge that the agreements to be reached before Britain leaves in March 2019 can only be concluded as a whole package simultaneously but leaders have barred Barnier from talking about trade before he gets outline deals on the rights of expatriate citizens and how much Britain owes the EU.
It comes as Philip Hammond warned failing to secure a Brexit deal would be “very, very bad” for the country and insisted there must be transitional arrangements to avoid a “cliff edge”. The vote followed decades of mounting skepticism toward a project initially based on free trade, and which became a lightning rod for complaints over rising immigration and bureaucracy.
According to the guidelines, the first phase will focus on two main issues, namely citizens’ rights and immediate effects of the Brexit on them, as well as settlement of financial rights and obligations that were undertaken by the United Kingdom as a European Union member state.
And Hammond described the divorce bill figures being bandied around in Brussels as “the most egregious pre-negotiation posturing”.
“Won’t go into substance in five or six hours”, one European Union official said. The UK has ruled out paying such a sum, suggesting it could seek a chunk of the EU’s assets as part of a “fair settlement”, although it might have to pay something to ease a trade accord.
Germany’s deputy foreign minister, Michael Roth, told RBB Inforadio that “we must of course protect our interests as the European Union 27 but naturally we also don’t want to punish Britain”.
With her predecessor David Cameron having resigned after his Brexit referendum defeat previous year, Theresa May’s days as British Prime Minister are probably numbered too as it is unlikely the Tories will want her leading them into the next general election.