Philip Hammond, the Foreign

It is already clear what the central trade off with the EU will be: access to the single market versus freedom of movement of people. Those who believe there is no need for such a trade-off have misunderstood something fundamental about the politics of the European Union.They have a principled belief in the "indivisibility of the four freedoms"; but they also have a political understanding that to give way to Britain on this question would likely lead to the unravelling of the EU. So we will need to come to a consensus as a nation on that central trade-off.The referendum result creates a new political reality: unfettered free movement of EU nationals, as it has worked hitherto, is no longer on the table. Our priority must be securing the best access we can for British businesses to the single market in goods and services, but within the limitations imposed by that political reality. That may be challenging for our economy, but we don't have to let it be a disaster.There is a range of outcomes between "no access" and "full unfettered access" to the market; and there is a range of possible restrictions on free movement and settlement.