Brexit talks deadlocked — EU
• Bloc negotiator says he is unable to recommend the start of trade deal negotiations and blames UK for stalling
Britain and the EU are stuck in a “disturbing” deadlock over the Brexit divorce bill, though a breakthrough remains possible in the next two months, says EU negotiator Michel Barnier.
The stalemate will stoke fears in London and Brussels of a breakdown in talks, which could result in Britain leaving the EU in March 2019 without a deal to soften the blow.
Wrapping up a fifth round of talks with Britain’s David Davis, Barnier said he could not recommend to EU leaders at a summit next week that negotiations move on from divorce issues to talks on a post-Brexit trade deal.
The Frenchman reserved his most cutting comments for the issue of financial commitments, saying Britain had still not spelled out what Prime Minister Theresa May promised in a key speech in Italy in September.
“We are at a deadlock on this question, which is extremely disturbing,” Barnier said at a media briefing with Davis at the European Commission headquarters in Brussels on Thursday. Speaking a mix of French and English, Barnier said the “constructive” talks had clarified some points but there had not been any “great steps forward” on central issues.
The leaders of the 27 other EU countries have demanded there be “sufficient progress” on the Brexit bill, the rights of EU citizens living in Britain and on Northern Ireland before moving on to discuss a trade deal.
On the bill, Barnier said there had been no actual negotiations with Davis, only narrow techni- cal talks on the details. “I am not currently able to recommend to next week’s European Council to open discussions on the future relationship.”
But Barnier added that he remained convinced that “with political will, decisive breakthroughs are within reach in the coming two months”.
He warned against the possibility of a so-called “hard Brexit” after May acknowledged this week that her government was setting aside money for a “no-deal scenario”.
“A no-deal will be a very bad deal,” Barnier said.
May later said the two sides were “very close to agreement” on a number of issues including citizens’ rights. She welcomed Barnier’s recognition that progress could soon be made.
Davis, a key figure in the Leave campaign in 2016’s Brexit referendum, said he still hoped EU leaders could decide to shift to the next phase when they met next week.
“I hope the member states will recognise the progress we’ve made and take a step forward in the spirit of the prime minister’s Florence speech,” Davis said, adding it was “in the interests of Europe and the UK”.
He called on EU leaders to give Barnier a mandate next week to “explore ways forward” on May’s proposal for a twoyear transition period after Brexit, even if trade talks were not opened.
The possibility of Britain leaving without a deal has suddenly become a reality in recent days, and the failure of negotiators to reach a breakthrough has rattled nerves and markets.
EU president Donald Tusk warned on Tuesday that the bloc might rethink whether a Brexit deal was possible if there was no progress by year-end.
Tusk also ruled out the possibility of moving onto the trade talks phase at the October 19 summit, although he said he hoped to be able to by the next summit in December.
“If it turns out that the talks continue at a slow pace and that ‘sufficient progress’ hasn’t been reached, then — together with our UK friends — we will have to think about where we are heading,” he said.