EU's von der Leyen begs for UK to 'explore' soft trade deal with free movement of people

The European Commission president said the bloc remains “open” to a close partnership with the UK after January 31, which could still include free movement of people. Speaking in Croatia, she said the UK would have to choose between following the bloc’s rules or facing significant trade barriers in the future. She said: “It is for us important that the UK chooses how close or not they want to be to the EU.

“There is a precondition that you recognise regulatory principles or rules if you want to have smooth access to the single market and vice-versa.

“If there is no free movement of people, of course there cannot be then free movement of goods, services, or capital, or vice-versa.

“It is now the time to explore the room, how close or distant the UK wants to be to the EU, its rules, and the single market.

“We’re very open to it, we want a strong and good partnership.”

She made the pitch despite being told by Mr Johnson that the UK is seeking a Canada-style free-trade agreement after leaving the EU.

Mrs von der Leyen’s charm offensive came as eurocrats warned a meeting of EU diplomats that British bankers would face a “large gap” with the bloc’s single market in any future deal.

Commission officials said the City of London would only be handed a bare-bones banking deal.

They were told the so-called “equivalence” deal should be seen as major step down from current arrangements.

Commission officials said the City of London would only be handed a bare-bones banking deal.

They were told the so-called “equivalence” deal should be seen as major step down from current arrangements.

British officials have already started exploring the EU’s previous trading arrangements in order to create an off-the-shelf financial services package.

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Amelie de Montchalin, France’s European affairs minister, said: “If Boris Johnson says it must end in 11 months from now and we need 15, 24 or 36 months, the 27 will take their time.”

President Emmanuel Macron’s trusted EU adviser added Brussels should be ready to engage in a “major army twisting game” with British negotiators. 

Mr Johnson has sent a series of warning shots to Brussels, insisting he will not extend the transition period beyond the end of the year.

He even told Mrs von der Leyen that any delays in the negotiations would be unacceptable for British voters.