European ministers agreed to Mrs May’s proposal for a transition period during which the UK will continue to have access to the single market.
However, they insisted that the UK continue to abide by EU law during this period, including all new laws brought in without the UK having a vote on them.
Mr Rees–Mogg said: “The terms laid down today in the transition deal are very bullying from the European Union, they are very harsh terms.
“They would require us to continue to allow freedom of movement of people even though we’ve have left.
EU negotiator Mr Barnier said: “The single market cannot be a la carte.”
The proposal would mean the UK is subject to EU law for 20 months after the proposed Brexit date of March 29, 2019.
Mr Rees–Mogg outlined the gravity of the EU ruling when challenged that the transition deal proposed would have been similar to what most expected after hearing Mrs May’s Lancaster House speech.
He said: ”We would take for the first time since 1066 laws imposed on us by a foreign power without having any say over it ourselves.
Jacob Rees Mogg has accused Michel Barnier of trying to ‘bully’ the UK
The terms laid down today in the transition deal are very bullying
“Now, that may be acceptable if we had a clear idea of what the end point is and had any idea what was coming afterwards.”
The senior Tory demanded to know if the UK would remain in the customs union and what degree of regularity alignment we would have with the EU.
He claimed too high a degree of regularity alignment would mean taking rules from the EU and not getting the benefit of controlling tariffs.
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Both Rees–Mogg and Nicky Morgan backed the Prime Minister to connote in her post during the Newsnight debate amid claims should could be ousted by the summer.
Despite Mr Rees–Mogg’s backing the European Research Group, of which he is chair, put the Prime Minister’s chances of survival at 50/50.
He said he believed Mrs May had his “best interests at heart” in EU negotiations.
The chair of the European Research Group backed Mrs Morgan’s call for unity and demanded the government set out what the “end state” will be, referring to the desired situation following the implementation of the deal.
Mr Rees–Mogg said: “There may be bits of the end state that I don’t like, there may be bits of the end state that Mrs Morgan doesn’t like but what we need to know is where they aim to get.
“Then we can have a proper discussion rather than the Chancellor saying one thing and the collective Cabinet view being another.”
Faced with claims that a leaked Brexit impact assessment has shown the UK will be worse off under “ever scenario modelled” after leaving the Brussels controlled bloc Rees–Mogg hit back.
The Tory MP said: “The key phrase is ‘every scenario modelled’ and it depends on the basis of the model if they used the same type of gravity models which the treasury used prior to Brexit those were comprehensively wrong.
Nicky Morgan back Theresa May to continue in her post
“They predicted an increase in unemployment just by voting to leave of 500-800,000, just by voting to leave.
“The key there is the assumption of the tariffs you apply to goods coming into the EU and I don’t know about these models but the ones completed before the Brexit vote assumed that we would apply the common external tariff to EU trade with the UK and that sort of thing makes these models highly speculative and so far very inaccurate.”
The former Education Secretary said the models showed there is a risk posed by Brexit to the economy before reminding viewers she voted to remain in the EU.
She said: “At the end of the day our constituents are not going to thank us, nor is the country if we have weakened their economic security and their jobs and livelihoods as a result of our negotiations.
“It is so critical that we do not undermine our economy any more than we are already going to by actually leaving in the first place.”