We've had this discussion before. The EU have this funding problem in all circumstances except the U.K. accepting a 'pay to play' deal which is unlikely in the extreme. In that sense the divorce settlement is important to put back the EU budget reckoning a few years (and if we settle at say €35bn and pay back over 5 years it gives them some thinking time). I read yesterday in the Times that Barnier has denied the €100bn figure. For propaganda purposes it is obviously better for Brexiters to ignore this.
The bureaucracy of ex Customs Union trade may make us less competitive in Europe (and EU goods in the U.K.), they don't have to be illegal or punitive. But it is more likely that a lower £ will continue to make British goods affordable, and make EU goods unaffordable in the U.K. Be interesting to see how the EU reacts to what is currently a big trade surplus between the 27 and the U.K. falling dramatically.
It's not so much trade in finished products (I am sure that we could get used to not having Spanish out of season fruit and vegetables in our supermarkets) I'm more interested in the trade in components between companies, and the potential impact of changes there. And just like May won't tell us the threshold for an elderly person not to get the Winter Fuel Allowance ("bad luck old woman, your pension is £1 over the limit"!) I don't know the pivot point where it becomes attractive for an entrepreneur in Augsburg or Coventry to set up their own manufacturing to supply their 'home' market. But, theoretically, Brexit could boost economic activity in both the EU and UK. It's just more likely to in the EU as they have a much bigger internal market, and judging by the news reports about our dependence on EU workers, the skills in place. And a lower £, increased levies on U.K. companies employing EU nationals, and a generally unwelcoming atmosphere towards immigrants, those skills are less likely to want to come here anyway. Which is what Big Mother wants.
I've read that Barnier is saying Euro 100 bn is unachievable and may stall the negotiations, but that was his opinion. He is simply Theresa May's David Davis.
Agree, the divorce settlement is there to smooth over the transition.
What May is saying on importing labour is that employers must justify, and show that equivalent quality is not available at home. They may get penalised for taking in cheap labour which undercuts the market, but where skilled labour is required e.g. tech companies, and none available domestically, employers will be able to establish need. Alongside all this, is the need to ensure young British people have the best education possible and train for relevant skills, whether or not this is university or apprenticeships. The Blair era where university was a right of passage, feet up for three years without thought to how a particular degree may help in the jobs market, is past.