The president of France has signalled that the UK will have a price to pay for its departure from the European Union.
President Hollande’s comments are likely to have contributed to the unease in the financial markets where fears are growing over the possibility of a ‘hard’ exit, namely severing ties with EU institutions as well as the single market.
On Friday morning, sterling plunged unexpectedly, suffering the largest fall since the June referendum.
He said EU members should be firm in their negotiations in order to prevent other countries from following in Britain’s path to leave the bloc.
"There must be a threat, there must be a risk, there must be a price, otherwise we will be in negotiations that will not end well and, inevitably, will have economic and human consequences," he said in a speech Thursday evening.
"Britain has decided on a Brexit, I believe even a hard Brexit. Well, we must go all the way with Britain's will to leave the European Union.
"We have to have this firmness" otherwise "the principles of the European Union will be questioned" and "other countries or other parties will be minded to leave the European Union in order to have the supposed benefits and no downsides or rules."
Hollande also referred to former PM Margaret Thatcher who in the 1980s managed to get a significant rebate on UK contributions to the EU.
Thatcher "wanted to remain in Europe, but receive a cheque in return," he said.
"Today, Britain wants to leave, but does not want to pay anything. That is not possible".
Prime Minister Theresa May told her party conference on Sunday that Article 50 will be activated at the end of March. The Article acts as the starting gun for departure proceedings and, because the EU has refused to have even informal discussions before this event, for negotiations to begin.
Comments
Unfortunately for Hollande, being on the brink of bankruptcy there's not much weight behind the strike monkeys in France.
All I can say is that the Channel tunnel and Ferry better have some form of armed guards , just in case there is a mass sick day in calais from the coppers prior to the next French Election.