UK preparing enhanced Brexit cash offer ahead of summit
The UK could be about to improve its financial offer to the European Union ahead of a crucial meeting of the bloc's leaders in December.
Members of Prime Minister Theresa May's divided cabinet will consider Britain's divorce from the EU at a meeting Monday of the Brexit cabinet sub-committee that could be key to unlocking the most controversial matter in the negotiations -money. Britain is "on the brink of making some serious movement forward" and starting to break the "logjam," Chancellor of the Exchequer Philip Hammond told the BBC on Sunday.
While Hammond is among the most pro-European members of cabinet, his suggestion follows Brexit Secretary David Davis's hint from Berlin that more details on a financial settlement would be presented within weeks. With businesses clamoring for clarity and the departure just 16 months away, pressure is mounting to break the impasse.
The EU is pushing for Britain to pay at least 60 billion euros ($71 billion) to cover budgetary commitments and future liabilities such as pensions for EU civil servants. So far, May has said she will make 20 billion euros of budget payments after Brexit, and is going through the other items line by line.
The Times said that while the government wouldn't put a figure on it, it was likely to add another 20 billion euros to what it's already agreed to. There's a risk that might not be enough to unblock talks.
"We are waiting for a substantial offer from the British," Dutch Foreign Minister Halbe Zijlstra said on Monday. "It has to be concrete and on the table instead of in the press." Any offer would follow a flurry of diplomatic activity: May flew to a summit in Sweden last week to talk to EU leaders on the sidelines, while Davis has been touring European capitals.
Now, it remains to to be seen is whether key players in May's Cabinet play along. Environment Secretary Michael Gove, a prominent opponent of the EU, said last week he wouldn't block May from "doing what she believed was right" on the exit bill, in what could signal a willingness from at least part of the pro-Brexit faction to allow some flexibility.
Boris Johnson, who's said in the past that the EU can "go whistle" if it wants a huge financial settlement, has seen his influence -- and ability to block a deal -reduced after a series of missteps as foreign secretary.
Time is pressing on Britain to come up with an improved offer after EU President Donald Tusk said early December would be "the latest" for additional concessions on the bill if talks are to advance beyond the divorce and on to future trading arrangements after a mid- December summit.
"We will make our proposals to the European Union in time for the council. I am sure about that," Hammond said in an interview with the BBC on Sunday. Asked if time was running out for the U.K. to make an improved offer on its exit payment, he replied that "the council is in three weeks, so, yes."
The U.K. has already agreed to pay into the EU budget for two years after leaving, which it considers a step toward what the EU wants, even if the Europeans say it doesn't go far enough.