Brexit: ‘Everything will be on the table’ during negotiations, says French minister

Freedom of movement may no longer be prerequisite for access to single market

Every aspect of trade deals, including freedom of movement, will be “on the table” for discussion when the UK negotiates its exit from the EU, a French minister has said.

European leaders, including French president François Hollande, had previously insisted access to the single market relied on freedom of movement, the French finance minister Michel Sapin’s comments signal a different tone.

Mr Sapin, one of Socialist leader Mr Hollande’s closest allies, told BBC Newsnight: “When we negotiate with a country, a third party, Norway, Switzerland, to take countries that are very close, we discuss all subjects: under what conditions there is freedom of movement of people; freedom of movement of goods; of capital.

“That is something that is very important for the UK, with all the questions about financial services. So we discuss everything.

“Everything will be on the table because Britain will make proposals, and we will negotiate all these aspects with a desire to come to an agreement. But we’re not there yet, until we have an official decision from the UK.”

But he warned against playing down the implications of Brexit, continuing: “Britain won’t be in the same position as it was beforehand. Things will change. Things have already changed. We return to zero, as we say in French - a clean slate.”

Mr Sapin also noted that a number of financial institutions could move their operations out of London and into EU countries – many of whom will be drawn to Paris – depending on the result of the UK’s departure from the trade bloc.

He said: "We should prepare for this. Not out of hostility."

HSBC, a leading global bank that has assets worth $2.6 trillion (£1.9 trillion), is planning to move up to 1,000 staff from the UK to Paris.

Criticising the leave campaign for apparently having unprepared a plan for Brexit Britain, Mr Sapin added: “What surprised me is that those who argued for Brexit, and whom the people backed, were prepared for absolutely none of the consequences of this Brexit.

“They suddenly discovered difficulties and problems. We are discovering them with them. But for the UK of course it’s much more serious.

“When you take a position you should analyse all the aspects and all the consequences. Perhaps therefore if the people of Britain had known the consequences they wouldn’t have voted the way they did. But the vote is there and we have to deal with the consequences.”

The French government still plans to build a nuclear power plant at Hinkley Point, despite the result of the referendum, according to Mr Sapin.