May stressed she would like to see the UK and EU continuing to work closely together on security, despite Brexit. Security wasn’t the only area of May’s vision which became clearer over the weekend. Theresa May is still set on picking and choosing the rules she would like the UK to follow. For example, it is expected she will choose to drop rules in the financial services and agriculture area, but favour keeping rules where it would make regulatory sense, such as in manufacturing. Despite the EU previously warning the UK they couldn’t ‘cherry pick’ the rules, German Chancellor, Angela Merkel indicated, after meeting with May on Friday, that making a tailored deal for the UK wouldn’t necessarily be ‘cherry picking.’
With less than two weeks until the Italian elections, the five star movement is currently leading the polls, with between 27 and 29 percent of the vote. However, this would not be enough for the party to lead on its own and the polls are indicating it could be a hung parliament. Similarly to Germany, it is likely a coalition will need to be formed for any party to lead, however the main parties have ruled this out. Four-time prime minister, Silvio Berlusconi’s party, the Forza Italia party has already agreed a coalition with Lega Nord. The polls suggest they might just gain enough votes to lead with a minority. Due to Italian law, no further polls are allowed to take place now before the election.
UK Brexit Secretary, David Davis is the next speaker in ‘the road to Brexit’ series of speeches. He will be addressing Austrian business leaders in Vienna, where he will explain how he wants the UK to be able to continue trading with the EU smoothly, despite leaving the free market. To do this, Davis would like the UK and EU to continue their close co-operation after Brexit on areas such as standards and regulations. Davis is also going to state that the UK will not ‘plunge into a Mad Max-style world borrowing from dystopian fiction’, as these fears are based on nothing.
The Eurozone will be releasing the German ZEW Economic Sentiment report today. The index is expected to post 16, compared to 20.4 for the previous reading. The Economic and Financial Affairs Council is scheduled to meet today to discuss a range of financial issues. The meeting itself is closed to press, but attendees often give the press updates and formal statements are often released.