FXStreet (Mumbai) – Brussels yesterday made an offer to British PM David Cameron which according to critics contained “watered-down” pledges. As per the offer EU migrants will get “gradually increasing access” to benefits after they come to the UK . Cameron had demanded a complete ban on EU migrants receiving any benefits. The offer has been dubbed as “pathetic” and “insubstantial”. The PM has however welcomed the president of the European Council, Donald Tusk’s offer confirming that he “sure would” take the offer.
Cabinet sources have blamed Cameron for setting the ball ball rolling for his in campaign by accepting the offer. Cabinet ministers have threatened to defy David Cameron and speak against his EU deal in public. Ukip leader, Nigel Farage addressing the European Parliament has said “It wasn’t suppose to be like this. No treaty change, no powers returned to the United Kingdom, no controls over our borders at all. It was hardly worth the wait. It’s really rather pathetic.” Downing Street on the other hand has asked all ministers to adhere to “collective responsibility” and support the PM till at least the Brussels meeting later in the month. Former defence secretary Liam Fox is “certain” that four or five serving Cabinet ministers will render their support in favor of Brexit. He also warned that if the PM attempted to suppress the opposition he would risk a ‘lasting split’ in the Tory Party.
Home Secretary Theresa May has hinted that she could support the EU’s proposals if they provided “a basis for a deal”. This has rendered a major boost to David Cameron who has asked his MPs to not pay attention to ‘constituency associations or the threat of boundary reviews’ while deciding on their stance. “If you passionately believe in your heart that Britain is better off out, you should vote that way. If you think Britain is on balance better off in, go with what you think. Don’t take a view because of what your association my say, or a boundary review”, Cameron said.
Cameron will meet the European Council this month to negotiate more reforms in favour of UK. Farage feels it will be humiliating for UK if Cameron pleads before other leaders requesting “please can we have some more”. Eurosceptic Cabinet ministers warned that the EU deal will fail to solve the migration problem in UK. Critics complained that the “watered-down” deal has not lived up to the demand that migrants cannot claim in-work benefits for four years post their entry into UK. Conservative MPs are also disappointed because Cameron could not manage to make EU accept the demand that migrants would not be allowed to send benefits back to their home countries. According to the offer made, the benefits will be reduced by “indexing” migrants to the standard of living abroad. Cameron however continued to stress that the changes suggested in the offer would “make a difference” though he admitted that the new offer will not help to reduce net migration to the “tens of thousands”.
European Commission chief Jean-Claude Juncker addressed MEPs in Strasbourg on Brexit ahead of the scheduled EU meeting in the middle of this month. In his opinion “The settlement that has been proposed is fair for the UK, fair for the other 27 states and fair for the European Parliament.”He also pointed out that UK’s migrant problem is a “result” of Tony Blair’s decision to not use the transitional controls which Juncker feels would have hindered the influx of migrants into UK. He believes that the offer made will in fact enable “UK to use the safeguard mechanism to address the consequences of that that decision.”
(Market News Provided by FXstreet)