The United Kingdom wants to agree with the European Union a deep and special partnership that takes in both economic and security cooperation. To achieve this, we believe it is necessary to agree the terms of our future partnership alongside those of our withdrawal from the EU.

If, however, we leave the European Union without an agreement the default position is that we would have to trade on World Trade Organisation terms. In security terms a failure to reach agreement would mean our cooperation in the fight against crime and terrorism would be weakened. In this kind of scenario, both the United Kingdom and the European Union would of course cope with the change, but it is not the outcome that either side should seek. We must therefore work hard to avoid that outcome.

It is for these reasons that we want to be able to agree a deep and special partnership, taking in both economic and security cooperation, but it is also because we want to play our part in making sure that Europe remains strong and prosperous and able to lead in the world, projecting its values and defending itself from security threats. And we want the United Kingdom to play its full part in realising that vision for our continent.

Eoin Treacy's view

The UK is not applying for membership of the EEA and is going for a free trade agreement with the EU. That’s a bold step and will require active engagement from the EU if it is to have any hope of being achieved. The question of money is going to be front and centre. The EU now has a hole in its budget in the order of €15 billion a year. Germany wants the UK to commit to paying up before negotiations start. It would be lunacy for the UK to agree to that since the issue of the EU budget is one of its trump cards (pardon the pun).

The Pound has been trending lower since 2014 and a progression of lower rally highs is still evident against the US Dollar. The rate pulled back from the upper side of an almost six-month range this week and a sustained above the trend mean would be required to signal a return to demand dominance beyond short-term steadying.