UK hoping to skip $89b EU divorce bill
BRITAIN: Germany is backing Britain to stop the European Commission presenting a €60 billion (NZ$89b) ‘‘divorce’’ bill immediately after Prime Minister Theresa May begins the Brexit process.
Michel Barnier, the European Union’s chief Brexit negotiator, wants the opening phase of Brexit talks to focus on the size of the exit bill for existing funding commitments, pensions and other liabilities.
He believes discussions on the EU-UK free trade deal, which is the main focus of ministerial work in the UK, should be delayed until substantial progress on exit issues.
In private, Germany is understood to be critical of this approach. German ministers are sensitive to the UK argument that the public backlash in Britain over the concept and size of an ‘‘exit bill’’ could scupper talks before they begin.
The fixed two-year timeframe for Brexit talks under Article 50 means Barnier’s tactic of delay while the ‘‘clock is ticking’’ would mean less time to strike a trade deal with the EU.
Even cabinet ministers who voted to remain say it will be incredibly hard to defend talks that only revolve around a massive bill from Brussels.
Yesterday the UK government highlighted German Chancellor Angela Merkel’s public commitment to parallel talks – with ‘‘divorce’’ negotiations and discussion about a trade deal taking place at the same time – during a press conference with May last July.
Merkel said: ‘‘The UK has to clearly outline how it sees its future with the EU. These have to be parallel processes. You can’t completely cut off the bonds and then after a long, winding negotiating process come up with how one sees the future relationship. So a good negotiating process is in all of our interests.’’ German officials appear to be abiding by this agreement. It is understood they have in recent weeks said that, tactically, the EU cannot just throw the €60b bill at the UK on the first day of negotiations. They fear this would force the UK to walk out, leaving Britain’s trade with the EU to be governed by World Trade Organisation terms.
Other countries have signalled their opposition to the commission-led plan. In January Alfonso Dastis, the Spanish foreign minister, said his country was sympathetic to London’s call for trade deal negotiations at the same time as the separation talks.
France is thought to be less sympathetic.
Some analysts believe the commission has become less hardline in the past six months over the timing of trade talks, with ‘‘informal’’ discussions to be run in parallel from relatively early on.
Britain is operating a ‘‘divide and rule’’ approach over Brexit, making clear to individual nations the consequences of a punishing approach.
Ministers touring EU countries are reminding their counterparts about the benefits of a successful and strong Britain, hoping that in turn they will counter the more hardline approach pushed by the EU. – The Times