'The EU will decide' Tusk hits out at Hammond's calls for City deal

The president of the European Council issued a cutting take-down of the Chancellor during a visit to Dublin today – his third such trip in three months.

Speaking with Irish Taoiseach Leo Varadkar, Mr Tusk referenced Mr Hammond’s comments on a financial services deal, something the Chancellor said would benefit the UK and EU.

However instead of accepting the Brexit olive branch, Mr Tusk rejected the claim and bristled at the suggestion such a deal would help Brussels.

He said: “I heard the Chancellor’s words about financial services being very much in the mutual interest of the UK and the EU.

“I fully respect his competence in what is defining what is in the UK’s interests. However he’ll have to let us define what is in the EU’s interest.”

Mr Hammond said yesterday any future Brexit deal must include terms of financial services for the “mutual benefit” of Britain and Europe.

He said: “If it could be done with Canada or the USA, it could be done with the UK.

“I am clear not only that it is possible to include financial services within a trade deal but that it is very much in our mutual interest to do so.”

This is a developing story, more to follow…