In an interview with The Independent, the former de-facto deputy prime minister describes Brussels’s stance on state aid – the key obstacle to an agreement – as “perfectly routine” as he calls for compromise.
Sir David also warned Britons will be “less safe” if the UK crashes out of the transition period without a deal, because the “acrimonious” atmosphere will undermine attempts to rebuild vital security cooperation.
And he sought to puncture Brexiteer confidence, saying: “Both sides stand to lose from a no-deal – but the UK more than the EU because we are the smaller party.”
The warning comes as Sir David pushes for a “close strategic partnership” with the EU – despite the poison of the Brexit divorce – saying: “However it ends, the geography remains the same.”
The Theresa May ally is the new chairman of Conservative Group for Europe, to advocate that partnership and to rescue Tory links with other European centre-right parties.
The interview comes with under 100 days until the transition period ends and with negotiations still deadlocked, risking a deeper economic slump with enormous disruption to trade and security.
The EU has attacked the UK for failing to explain how it will regulate state aid, or settle disputes, in order to deliver the “level playing field” Mr Johnson signed up to a year ago.
Instead, a consultation is promised “in the coming months” – despite the urgency – reflecting an intense internal battle, with Dominic Cummings pushing for freedom to subsidise big tech innovations.
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But Sir David said the EU’s expectation of an independent mechanism to enforce agreed state aid rules was common in “umpteen trade agreements around the world”.
“Under successive governments, the UK has chosen not to give state aid which would have been allowed under EU rules, so it’s ironic to see this being elevated into a great issue now,” he said.
“You have to have some kind of independent arbitration and it’s a perfectly routine system that you have in many international trade agreements – not just EU ones.”
Sir David, a renowned Europhile who stood down at last December’s election, stressed both sides needed to compromise – ahead of a mid-October deadline for averting no-deal – and criticised Brussels’ “doctrinaire” refusal to bend on future access to security databases.
Asked why Mr Johnson was apparently refusing to give ground, he replied: “He and others criticised both David Cameron and Theresa for being too conciliatory and not adversarial enough in how they conducted the negotiations.
“It’s a belief that you need to be very aggressive, very in-your-face, demonstrate that you are willing to walk away from the table, in order to get the best outcome.
“I prefer the Cameron-May approach – you never leave the table, be dogged, keep on bashing away until you hope you reach an acceptable compromise for both sides.”
On security co-operation – with the UK about to lose the European Arrest Warrant and access to files on suspected terrorists and organised criminals – he warned: “I hope the separation is friendly, because it becomes a lot easier to negotiate the practical deals on things like policing in that climate.
“If it’s acrimonious it’s the worst possible start. It means the gap will be longer before tempers on both sides cool and they can get down to business again.
“And that makes people less safe both in Britain and elsewhere in Europe.”
He also sided with Ms May in her fierce criticisms of the Internal Market Bill, saying: “All my instincts would be the same as hers. The risk to the Union is a serious one, both in Northern Ireland and in Scotland at the moment.”
Nevertheless, Sir David said he still believed the prime minister wanted a deal and that one could be reached, adding: “I’m still in the optimistic camp.”
And he praised Mr Johnson’s readiness, despite Brexit, to side with the EU, against the US, on climate change, Iran and Israel-Palestine, as well as cooperating on combatting the Russian threat in Ukraine and by sending military support to Chad.
The former chancellor of the Duchy of Lancaster revealed he had had to be “very frank” with some members of Conservative Group for Europe about its aims.
“We have to stop mourning about 2016 and the referendum result. However many times you replay the tape, our side still lost,” he said.
“I’m not thinking about a campaign to rejoin – that’s foolish, the British people are not interested in that.”
