Tag Archives: UK

EU offers Brexit trade talks, sets tough transition terms

People drink beer at a Pro-Brexit event to celebrate the invoking of Article 50, in London. REUTERS/Peter Nicholls

By Robin Emmott and Alastair Macdonald

VALLETTA/BRUSSELS (Reuters) – The European Union offered Britain talks this year on a future free trade pact but made clear in negotiating guidelines issued on Friday that London must first agree to EU demands on the terms of Brexit.

Those include paying tens of billions of euros and giving residence rights to some 3 million EU citizens in Britain, the proposed negotiating objectives distributed by EU summit chair Donald Tusk to Britain’s 27 EU partners showed.

The document, seen by Reuters, also sets tough conditions for any transition period, insisting Britain must accept many EU rules after any such partial withdrawal. It also spelled out EU resistance to Britain scrapping swathes of tax, environmental and labor laws if it wants to have an eventual free trade pact.

The guidelines, which may be revised before the EU27 leaders endorse them at a summit on April 29, came two days after Prime Minister Theresa May triggered a two-year countdown to Britain’s withdrawal in a letter to Tusk that included a request for a rapid start to negotiations on a post-Brexit free trade deal.

“Once, and only once we have achieved sufficient progress on the withdrawal, can we discuss the framework for our future relationship,” Tusk told reporters in Malta — a compromise between EU hardliners who want no trade talks until the full Brexit deal is agreed and British calls for an immediate start.

“Starting parallel talks on all issues at the same time, as suggested by some in the UK, will not happen,” Tusk said, while adding that the EU could assess as early as this autumn that Britain had made “sufficient progress” on the exit terms in order to open the second phase of negotiations, on future trade.

Brussels has estimated that Britain might owe it something of the order of 60 billion euros on departure, although it says the actual number cannot be calculated until it actually leaves.

What it does want is to agree the “methodology” of how to work out the “Brexit bill”, taking into account Britain’s share of EU assets and liabilities. Britain disputes the figure but May said on Wednesday that London would meet its “obligations”.

The Union’s opening gambit in what Tusk said would at times be a “confrontational” negotiation with May’s government also rammed home Brussels’ insistence that while it was open to letting Britain retain some rights in the EU during a transition after 2019, it would do so only on its own terms.

Britain would have to go on accepting EU rules, such as free migration, pay budget contributions and submit to oversight by the European Court of Justice — all things that drove last June’s referendum vote to leave and elements which May would like to show she has delivered on before an election in 2020.

“Should a time-limited prolongation of Union acquis be considered, this would require existing Union regulatory, budgetary, supervisory and enforcement instruments and structures to apply,” Tusk’s draft guidelines stated in reference to a transition period that diplomats expect could last two to five years to smooth Brexit.

“NO DUMPING”

It also stressed that a future trade pact, allowing for not just low or zero tariffs on goods but also regulatory alignment to promote trade in services, should not allow Britain to pick and choose which economic sectors to open up. That would prevent London giving undue subsidies or slashing taxes or regulations — “fiscal, social and environmental dumping”, in EU parlance.

The negotiations will be among the most complex diplomatic talks ever undertaken and the EU guidelines are only an opening bid. EU officials believe they have the upper hand in view of Britain’s dependence on exports to the continent, while British diplomats see possibilities to exploit EU states’ differences.

Tusk and Maltese Prime Minister Joseph Muscat, who holds the Union’s rotating presidency, warned against such efforts and insisted the EU would negotiate “as one”, through their chief negotiator, former French foreign minister Michel Barnier. He expects to start full negotiations in early June.

Tusk spelled out priorities for the withdrawal treaty, which Barnier hopes can be settled by November 2018, in time for parliamentary ratification by Brexit Day on March 29, 2019:

– the EU wants “reciprocal” and legal “enforceable” guarantees for all EU citizens who find their rights to live in Britain affected after a cutoff on the date of withdrawal

– businesses must not face a “legal vacuum” on Brexit

– Britain should settle bills, including “contingent liabilities” to the EU

– agreement on border arrangements, especially on the new EU-U.K. land border in Ireland, as well as those of British military bases on EU member Cyprus.

(Writing by Alastair Macdonald; Editing by Catherine Evans)

‘Near-impossible’ to stop London-style attack: Israeli security expert

FILE PHOTO: A man walks next to a newly erected concrete barriers at the entrance to Jabel Mukaber, in an area of the West Bank that Israel captured in a 1967 war and annexed to the city of Jerusalem, the morning after a Palestinian rammed his truck into a group of Israeli soldiers on a popular promenade in Jerusalem January 9, 2017. REUTERS/Amir Cohen/File Photo

By Luke Baker

JERUSALEM (Reuters) – Attacks like the one in London are almost impossible to stop, the former head of VIP protection at Israel’s Shin Bet security agency said on Thursday, acknowledging that even Israel struggled to prevent them.

Despite building a barrier intended to prevent Palestinian attackers protesting against occupation entering from the West Bank, Israel has suffered dozens of low-tech vehicle or knife attacks in the last two years on civilians, police and soldiers.

“What happened in London was basically in a public area and, when it comes to public areas, it’s nearly impossible (to prevent),” said Shlomo Harnoy, who spent 25 years in the Shin Bet, sometimes coordinating protection for U.S. presidential visits. He now directs Sdema Group, a global security consultancy.

“There are ideas to build public areas to counter specific security threats, especially when it comes to explosive materials, but when it’s an attack on a bridge or something like that, it’s very difficult.”

In Wednesday’s attack, the suspect drove his rented vehicle into pedestrians on Westminster Bridge before stabbing a policeman at the entrance to the Houses of Parliament. Four people were killed and at least 40 injured. The attacker, identified by police as British-born, was shot dead.

In Israel, Palestinians have rammed cars and trucks into civilians or members of security forces standing in particular at bus stops, tram stations and security posts.

In January, four soldiers were killed and 17 injured when a Palestinian drove his truck at high speed into a group of cadets waiting by the side of the road in Jerusalem.

BLOCKS AND BOLLARDS

Steel bollards have been put up in sensitive areas, and there are now concrete blocks stopping vehicles from approaching tram stops.

But Harnoy said that “you can’t put concrete blocks and barriers everywhere, especially in the center of a city like London. It can’t be like a military installation”.

“To my mind, the best solution for stopping an attack is having people who know how to use arms, including civilians,” he said.

In Israel, police carry guns, it is not uncommon to see armed soldiers on the streets, and many civilians, most of whom have done army service, carry pistols. When attacks occur, video footage often shows civilians drawing weapons at the scene.

“But of course in Britain that is very difficult,” Harnoy said. “Even most police don’t carry weapons. For me, that is one of the mistakes in Britain, not allowing police to have weapons.”

Even in Israel, Harnoy is not convinced that most civilians who carry a weapon are sufficiently trained to handle an attack.

He also noted that Israel allowed its intelligence services more freedom to dig up background information on individuals than Britain, which had to strike more of a balance with privacy and human rights.

“This is a war,” said Harnoy. “When it comes to intelligence, you need 10 to 15 years of information on people, and in doing that you have to think carefully about their rights, about the balance between freedom and security.

“To implement such an intelligence system, you have to make a different balance with democratic rights.”

(Writing by Luke Baker; Editing by Kevin Liffey)

Four dead, others injured in UK parliament ‘terrorist’ attack

An air ambulance lands in Parliament Square during an incident on Westminster Bridge in London. REUTERS/Stefan Wermuth

By Toby Melville and William James

LONDON (Reuters) – Four people were killed and at least 20 injured in London on Wednesday after a car plowed into pedestrians and an attacker stabbed a policeman close to the British parliament, in what police called a terrorist incident.

The dead included the assailant and the policeman he stabbed, while the other two victims were among the pedestrians hit by the car as it tore along Westminster Bridge, which is right next to parliament.

“We’ve declared this as a terrorist incident and the counter-terrorism command are carrying out a full-scale investigation into the events today,” Mark Rowley, Britain’s most senior counter-terrorism officer, told reporters.

“The attack started when a car was driven over Westminster Bridge, hitting and injuring a number of members of the public, also including three police officers on their way back from a commendation ceremony.

“A car then crashed near to parliament and at least one man, armed with a knife continued the attack and tried to enter parliament.”

Reuters reporters who were inside parliament at the time heard loud bangs and shortly afterwards saw the knifeman and the stabbed policeman lying on the ground in a courtyard just outside, within the gated perimeter of the parliamentary estate.

A Reuters photographer said he saw at least a dozen people injured on the bridge. His photographs showed people lying on the ground, some of them bleeding heavily and one under a bus.

A woman was pulled alive, but with serious injuries, from the Thames, the Port of London Authority said. The circumstances of her fall into the river were unclear.

Three French schoolchildren aged 15 or 16 were among those injured in the attack, French officials said.

The attack took place on the first anniversary of attacks by Islamist militants that killed 32 people in Brussels.

PARLIAMENT SESSION SUSPENDED

“I just saw a car go out of control and just go into pedestrians on the bridge,” eyewitness Bernadette Kerrigan told Sky News. She was on a tour bus on the bridge at the time.

“As we were going across the bridge, we saw people lying on the floor, they were obviously injured. I saw about 10 people maybe. And then the emergency services started to arrive. Everyone was just running everywhere.”

The House of Commons, which was in session at the time, was immediately suspended and lawmakers were asked to stay inside.

Prime Minister Theresa May was safe after the incident, a spokesman for her office said. He declined to say where May was when the attack took place.

Journalist Quentin Letts of the Daily Mail newspaper told LBC radio that he had witnessed the stabbing of the policeman and the shooting of the assailant from his office in the parliament building.

“He (the assailant) ran in through the open gates … He set about one of the policemen with what looked like a stick,” Letts said.

“The policeman fell over on the ground and it was quite horrible to watch and then having done that, he disengaged and ran towards the House of Commons entrance used by MPs (members of parliament) and got about 20 yards or so when two plain-clothed guys with guns shot him.”

Britain is on its second-highest alert level of “severe” meaning an attack by militants is considered highly likely.

In May 2013, two British Islamists stabbed to death soldier Lee Rigby on a street in southeast London.

In July 2005, four British Islamists killed 52 commuters and themselves in suicide bombings on the British capital’s transport system in what was London’s worst peacetime attack.

(Additional reporting by Kylie Maclellan, Elizabeth Piper, Costas Pitas, Alistair Smout, Michael Holden, Kate Holton, Elisabeth O’Leary and London bureau, writing by Estelle Shirbon, editing by Stephen Addison, Mark Trevelyan and Guy Faulconbridge)

Scottish parliament suspends independence debate after London attack

A police car is parked outside the Scottish Parliament following suspension of the referendum debate in Edinburgh Scotland, Britain March 22, 2017. REUTERS/Russell Cheyne

EDINBURGH (Reuters) – Scotland’s devolved parliament suspended a planned vote on Wednesday to give its government a mandate to seek a new independence referendum after an attack on Britain’s Houses of Parliament in London which police said they were treating as a terrorist incident.

No date for the debate to resume was given.

The Scottish parliament issued a statement saying it would increase security measures, although no specific threat to Scotland had been detected.

London’s permission for a new Scottish referendum is needed because any legally binding vote on United Kingdom constitutional matters has to be authorized by the UK parliament.

Prime Minister Theresa May has not completely ruled out another Scottish independence vote but has vowed to fight for what she has called the “precious union” of the United Kingdom.

First Minister Nicola Sturgeon, who argues that Scotland’s vote to keep its EU membership in last June’s referendum has been ignored in May’s Brexit arrangements so far, is seeking authority for a second referendum from the Scottish parliament, to be held in late 2018 or early 2019.

(Reporting by Elisabeth O’Leary; editing by Stephen Addison)

UK lawmaker killed for ‘ideological cause’ on EU membership

Tributes in memory of murdered Labour Party MP Jo Cox, who was shot dead in Birstall, are left at Parliament Square in London, Britain June 18, 2016.

By Michael Holden

LONDON (Reuters) – British lawmaker Jo Cox, who was killed in the street shortly before the June 23 referendum on EU membership, died in a pre-meditated murder carried out for a political or ideological cause, jurors were told on Monday.

As the prosecution opened its case against Thomas Mair, 53, who is charged with Cox’s murder, the jury at London’s Old Bailey court were told witnesses had heard Mair repeatedly say “Britain First” during the attack.

Cox, a 41-year-old mother of two young children, was shot and repeatedly stabbed as she arrived for an advice session with constituents in the town of Birstall, part of her electoral district in northern England.

The murder of Cox, a former aid worker who had been an ardent supporter of staying in the EU, shocked Britain and led to the suspension for several days of referendum campaigning which had been growing increasingly bitter.

Mair is also charged with causing grievous bodily harm to 77-year-old Bernard Carter-Kenny, who tried to help Cox during the attack, and possession of a firearm and a dagger.

Prosecutor Richard Whittam told the jury Cox was shot three times and suffered multiple stab wounds.

“During the course of the murder, Thomas Mair was heard by a number of witnesses to say repeatedly: ‘Britain First’,” Whittam said.

“Thomas Mair’s intention was to kill her in what was a planned and pre-meditated murder for a political and/or ideological cause.”

“DEATH TO TRAITORS”

Carter-Kenny risked his own life and was stabbed with the same knife Mair used on Cox, Whittam added.

Earlier on Monday, with Cox’s mother, father and sister in court watching, eight men and four women were sworn in as jurors to hear the case which the judge Alan Wilkie said had attracted and would continue to attract considerable attention.

Mair, balding with a gray goatee beard and wearing a dark blue suit and black tie, sat silently in the dock flanked by three security guards.

At a hearing in October, he declined to respond when asked if he was guilty so the judge recorded not guilty pleas.

At the first court hearing following his arrest, Mair had said his name was “death to traitors, freedom for Britain” and the case, due to last two weeks, is being treated as a terrorism matter.

His lawyer has also previously told London’s Old Bailey central criminal court where the trial is being held that medical issues would not feature in the defense argument.

Cox’s murder briefly united politicians divided over the EU question and also led to questions about the security of lawmakers in their constituencies.

“As the trial starts I’d encourage everyone to remember Jo’s life and what she stood for, not the manner of her death,” her husband Brendan wrote on Twitter on Saturday.

The last British Member of Parliament to have been killed before Cox was Ian Gow, who died after an Irish Republican Army (IRA) bomb exploded under his car at his home in 1990.

(Reporting by Michael Holden; editing by Stephen Addison and Estelle Shirbon)

At odds over Brexit, UK nations hold ‘frustrating’ talks on common stance

Britain's Prime Minister Theresa

By Kylie MacLellan

LONDON (Reuters) – British Prime Minister Theresa May tried to persuade the leaders of Scotland, Wales and Northern Ireland on Monday to work with her government on a common Brexit negotiating position, but the Scottish leader dismissed the meeting as “deeply frustrating”.

May says that while the devolved governments of the UK’s three smaller nations should give their views on what the terms of Brexit should be, they must not undermine the UK’s strategy by seeking separate settlements with the EU.

“I don’t know what the UK’s negotiating position is because they can’t tell us,” Scotland’s First Minister Nicola Sturgeon said after talks at May’s Downing Street office.

“I can’t undermine something that doesn’t exist, it doesn’t appear to me at the moment that there is a UK negotiating strategy,” she told Sky News television.

While England and Wales voted for Brexit in a June referendum, Scotland and Northern Ireland voted to remain in the EU, setting the devolved governments in Edinburgh and Belfast on a collision course with the UK’s central government in London.

This could lead to a constitutional crisis, and potentially to Scottish independence and renewed political tensions in Northern Ireland.

At the meeting with Sturgeon and the Welsh and Northern Irish leaders, May proposed setting up a new body to give the three devolved governments, which have varying degrees of autonomy from London, a formal avenue to express their views.

“Working together, the nations of the United Kingdom will make a success of leaving the European Union — and we will further strengthen our unique and enduring union as we do so,” May said in a statement after the talks.

But Sturgeon struck a very different tone as she emerged.

“What I’m not prepared to do … is stand back and watch Scotland driven off a hard Brexit cliff edge because the consequences in lost jobs, lost investment and lower living standards are too serious,” she said.

CONFLICTING PRIORITIES

The British government, which has promised to kick off formal divorce talks with the EU before the end of March, has said it will negotiate a bespoke deal on behalf of the whole United Kingdom with the bloc’s other 27 members.

Sturgeon said she would make specific proposals over the next few weeks to keep Scotland in the single market even if the rest of the UK left, and that May had said she was prepared to listen to options.

“So far those words are not matched by substance or actions and that is what has got to change,” Sturgeon said.

Sturgeon, head of the Scottish National Party, has said her government is preparing for all possibilities, including independence from the UK, after Britain leaves the EU. She wants each of the UK’s four assemblies to get a vote on the proposed negotiating package.

In Northern Ireland, there are fears that Brexit could undermine a 1998 peace deal and lead to the reintroduction of unpopular and cumbersome controls on the border with the Republic of Ireland, an EU member.

Northern Ireland’s First Minister Arlene Foster said the devolved nations had to be at “the heart of the process” so that issues relevant to them could be tackled as they arose.

Welsh First Minister Carwyn Jones said it was difficult for the devolved administrations to influence the process when there was so much uncertainty over what the government was seeking.

Jones said he had argued very strongly for “full and unfettered access” to the EU’s single market, which is in doubt because EU leaders say it would require Britain to continue to accept EU freedom of movement rules.

One of the central planks of the pro-Brexit campaign was that exiting the EU would give Britain greater control over immigration and help reduce the numbers arriving in the country.

(Additional reporting by Elisabeth O’Leary, William James and Kate Holton; Editing by Estelle Shirbon and Robin Pomeroy)

UK government condemns ‘irresponsible’ English five day doctor strike

Britain's Health Secretary Jeremy Hunt arrives to attend a cabinet meeting at Number 10 Downing Street in London, Britain

The government says the new arrangements are part of its plan to bring in a safer and fuller seven-day health service, but the doctors say it will result in them working longer hours at anti-social times, putting patients at risk.

“The way to resolve those differences is to sit round the table to talk, it is cooperation and dialogue, it is not confrontation and strikes. That is why I think this action is totally irresponsible,” Hunt told BBC Radio.

He said around 100,000 operations could be canceled as a result of the action.

In May, the BMA and the government reached a deal to end the standoff but its members then voted to reject the new terms and conditions.

The BMA said concerns focus on the impact the contract will have on part-time workers and those who work the most weekends.

“This is not a situation junior doctors wanted to find themselves in … but in forcing through a contract that junior doctors have rejected and which they don’t believe is good for their patients or themselves, the government has left them with no other choice,” BMA junior doctor committee chair Ellen McCourt said in a statement.

There are some 55,000 junior doctors in England, about a third of the medical workforce. NHS services in Scotland, Wales and Northern Ireland, are managed separately from England.

(Reporting by Kylie MacLellan)

In Brexit month, investors dump shares, flee for safety of cash

A man is reflected in an electronic board showing the graph of the recent fluctuations of the TOPIX

By Sujata Rao

LONDON (Reuters) – Global investors bought real estate, added to cash holdings and cut equity allocations to the lowest in at least five years as this month’s shock Brexit vote added to an already toxic mix of sluggish world growth and volatile markets.

The monthly Reuters survey of 44 fund managers and chief investment officers in the United States, Europe, Japan and Britain was conducted between June 15-29, straddling the June 23 referendum in which Britons voted to leave the European Union.

The verdict, which drove sterling to 31-year lows and wiped $2 trillion off world stocks, heralds intense political and economic uncertainty for the UK, with likely repercussions for the euro zone as well as the rest of the world.

Close to two-thirds of poll responses were received after the vote, but many of those who responded beforehand said they had positioned defensively, given the uncertainties already roiling world markets.

This includes the looming U.S. presidential election which could bring victory for Republican Donald Trump – an outcome that two-thirds of those who responded to a special question said would have negative consequences.

Allocations to cash stood at 6.8 percent on average, having risen every month since February and the highest since last June, the survey showed.

In almost every region, investors dumped shares, with the average global holding at 45 percent, the lowest since before May 2011 at least and down from nearly 50 at the end of last year.

European funds’ equity allocations hit the lowest in over four years.

“We expect a risk-off attitude in financial markets to continue as investors digest the potential impact of Brexit and as geopolitical risks remain high,” said Matteo Germano, global head of multi-asset investments at Pioneer Investment.

Germano predicted a knock-on hit to commodity prices, while gold and U.S. Treasuries benefited. On equities, European and UK-focused stocks warranted caution, he said, adding:

“With increased geopolitical risk in Europe, the U.S. dollar should behave as a safe haven.”

Year-to-date, euro zone and UK stocks have lost some 10 percent and U.S. equities are just 2 percent in the black – a consequence also of stubbornly weak economic growth, U.S. rate rise expectations and fears of a sharp slowdown in China.

However, many investors noted that equity markets worldwide were already starting to claw back Brexit-fueled losses.

“Unquestionably, we have seen an extraordinary amount of money withdrawn from the global equity markets on Brexit worries,” Peter Lowman, CIO at Investment Quorum, a UK wealth manager.

But it was not “a Lehman moment”, he said.

Portfolios at HFM Columbus Asset Management were positioned cautiously, its investment director Rob Pemberton said, citing “more global concerns – global growth, Fed monetary policy, China.”

Property as an asset class was also in demand, its weight rising to 2.9 percent, also the highest in at least five years.

Bond allocations rose slightly to 38.1 percent.

TRUMP IMPACT

The full impact of Brexit is likely still ahead, as there is little certainty over when proceedings will formally begin to divorce the country from the EU, and how long they could take.

But even in the run-up to Brexit, investors were fretting about another potential speed bump – U.S. elections and the possibility of a Trump win.

Many say his proposals for reshaping the trade and diplomatic ties of the world’s largest economy, his anti-immigration rhetoric and questions about Treasury obligations create as much market uncertainty as the Brexit issue.

Asked how a Trump presidency could impact U.S. and global equities, two-thirds of those who replied saw it as negative. Some also cited fears that a Trump win on the heels of Brexit could encourage populist parties across Europe.

A Trump win would “increase the geopolitical risk at a worldwide level”, said Nadege Dufosse, head of asset allocation at Candriam.

ECB HEADACHE

One consequence of the Brexit jitters is the fresh slump in bond yields, with over $11 trillion in government bonds now yielding less than zero, and German 10-year yields falling into negative territory earlier in the month.

German yield falls below the European Central Bank’s deposit rate will exacerbate the acute scarcity of bonds eligible for the ECB’s asset purchase program. That could pressure it to cut interest rates further to accommodate these bonds.

But just a quarter of the June survey participants who answered a special question on the subject thought the ECB would run out of bonds to buy.

“Markets have indeed been pricing in the possibility that the ECB would come up against practical limits on its purchases of government bonds by 2017,” said Andrew Milligan at Standard Life Investments.

But the ECB has already broadened the range of instruments eligible for its 1.7 trillion euro stimulus plan, he noted, referring to its recent move into high-grade corporate debt.

Jan Bopp, asset allocation strategist at Bank J. Safra Sarasin disagreed, predicting that unless criteria were changed, the ECB would run out of bonds by December.

“This in itself is feeding the bond market rally as the ECB needs to move further along the yield curve to purchase bonds,” he added.

(Additional reporting by Karin Strohecker, Massimo Gaia and Hari Kishan; Editing by Hugh Lawson)

‘Why are you here?’ Juncker asks Brexit lawmakers

EC President Juncker welcomes Farage, the leader of the UKIP, prior to a plenary session at the European Parliament on the outcome of the "Brexit" in Brussels

BRUSSELS (Reuters) – European Commission President Jean-Claude Juncker asked lawmakers of Britain’s anti-EU UKIP on Tuesday why they had attended a European Parliament session to discuss the consequences of the British vote to leave the bloc.

“We must respect British democracy and the way it has expressed its view,” Juncker said in a speech to parliament, words that were greeted by rare applause from the UKIP members present.

“That’s the last time you are applauding here… and to some extent I’m really surprised you are here. You are fighting for the exit. The British people voted in favor of the exit. Why are you here?” Juncker continued, breaking from his speech text.

Juncker spoke from a desk next to that of UKIP leader Nigel Farage, who followed the largely French and German speech with headphones and with a British flag planted in front of him.

Before the session began, Farage had gone over to speak to Juncker. Both men appeared relaxed and as Farage made to leave, Juncker pulled him close and gave him an air-kiss on the cheek.

Juncker said he would make no apology for being “sad” at the result of the British vote – “I am not a robot,” he said, “I am not a gray bureaucrat.”

He urged Britain to explain quickly what it wanted from the EU in terms of a new relationship but insisted he had told his staff to engage in no preliminary talks with British officials until London engages the two-year mechanism for leaving the EU.

“No notification, no negotiation,” he said.

On a rare personal note, the 61-year-old former Luxembourg prime minister, struck out at critics, notably in the German press but also among east European governments, who have called on him to stand down following the Brexit vote.

“I am neither tired or sick, as the German papers say,” he said. “I will fight to my last breath for a united Europe.”

(Reporting By Philip Blenkinsop; Editing by Alastair Macdonald)

UK would lose at least half million jobs if vote to leave EU

A British Union flag flutters in front of one of the clock faces of the 'Big Ben' clocktower of The Houses of Parliament in central London

EASTLEIGH, England (Reuters) – Britain would lose at least half a million jobs within two years of a vote to leave the European Union and a fall in the value of the pound would push up inflation sharply, finance minister George Osborne said on Monday.

With a month to go until Britain holds its European Union membership referendum, Osborne said workers’ earnings, when adjusted for inflation, would be almost 3 percent lower in two years’ time, equivalent to a pay cut worth almost 800 pounds a year for someone working full time on the average wage.

Osborne was speaking as the finance ministry published a new report on the short-term implications of an “Out” vote.

(Writing by William Schomberg, editing by Kate Holton)