We need to hold fast, see who blinks first, this is uncharted territory for the EU.
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The issue is that if we don't accept free movement we don't get free trade in goods and services.
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That might be the case today, how about tomorrow, next week, a year?
I wouldn't think the EU want long term uncertainty either, it might well lead to more members exiting the wonderful club.
If the EU is like a house of cards and is stacked so precariously that if a couple of members leave, and it comes crashing down, was it really that stable to begin with?