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Breaking: further statement from UK govt:

“We will always reserve the right to act in the best interests of Northern Ireland and the UK’s internal market.
Our top priority is to preserve the huge gains from the peace process and the Belfast (Good Friday) Agreement, as well as protecting Northern Ireland’s place in our United Kingdom.
We are working hard to resolve outstanding issues with the Northern Ireland Protocol through the Joint Committee and will continue to approach these discussions in good faith.
As a responsible government, we are considering fall back options in the event this is not achieved to ensure the communities of Northern Ireland are protected.’
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Tony Connelly
@tconnellyRTE
How does the NI Protocol entangle the UK in the EU's state aid rules? Here's an attempt to explain the issues:
1/ As NI will be a de facto member of the single market, it is subject to EU state aid law. The British government can't subsidise companies there that would give them an unfair advantage over, say, competitors south of the border...
2/ What's more, the European Commission has made it clear that it interprets that provision also applying if the UK govt subsidises a company which has significant subsidiaries in NI. In other words, the effect of state aid in NI via the Protocol would have a reach across to GB
Read 15 tweets
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Tony Connelly
@tconnellyRTE
Hard to know what to make of @pmdfoster story on the Internal Market Bill and the NI Protocol, except to say that Peter has been unfailingly accurate and painstakingly diligent in his long reporting on Brexit.
2/ The immediate response from my Irish sources are as follows: "not good" and that it is "clearly part of an overall stepping up of the noise by the UK", but that Michel Barnier's Task Force would want the UK to clarify things this week
3/ I won't indulge in the rampant speculation about UK tactics on the NI Protocol and whether the Internal Market Bill threat is designed to force the EU into some Spaghetti Western finale involving the WA, state aid and the kitchen sink...
Read 16 tweets
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Tony Connelly
@tconnellyRTE
BREAKING Boris Johnson statement just out:
“Prime Minister Boris Johnson will say today (Monday):

“We are now entering the final phase of our negotiations with the EU.
The EU have been very clear about the timetable. I am too. There needs to be an agreement with our European friends by the time of the European Council on 15 October if it’s going to be in force by the end of the year.
So there is no sense in thinking about timelines that go beyond that point. If we can’t agree by then, then I do not see that there will be a free trade agreement between us, and we should both accept that and move on.
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