No softening of demands for Brexit deal

European Commission head Jean-Claude Juncker on Wednesday renewed a pledge of close trade and security ties with Britain after Brexit, but said the European Union would not compromise on key withdrawal terms.

Delivering his annual stateof-the-union speech to the European Parliament, Juncker said the EU would not allow Britain to participate only in some parts of the bloc’s single market after Brexit without honouring all of its rules.

The EU respected Britain’s decision to leave, Juncker said.

“But we also ask the British government to understand that someone who leaves the union cannot be in the same privileged position as a member state,” he said.

“After March 29 2019, the [UK] will never be an ordinary third country for us.

“The United Kingdom will always be a very close neighbour and partner, in political, economic and security terms.”

Markets have been reacting increasingly nervously to Brexit news in recent weeks as the EU and Britain have yet to reach a comprehensive deal.

Businesses fear a disruptive “no-deal” scenario under which Britain would crash out of the EU in 2019 with few agreements in place.

Avoiding reintroducing checks on the EU-UK border in Ireland remains a key obstacle.

The EU has highlighted in recent weeks a willingness to work closely with Britain after Brexit, to help Prime Minister Theresa May convince her divided cabinet and parliament to accept Brexit terms.

But Juncker made clear key demands by the bloc held firm.

“The European Commission, this Parliament and all other 26 member states will always show loyalty and solidarity with Ireland when it comes to the Irish border,” he said.

If Britain does not reach an exit deal, the “position changes” on its agreement to pay a financial settlement to the bloc, May said on Wednesday.

As part of a Brexit transition deal, Britain has agreed to pay the EU between ß35bn and ß39bn (R609bn and R679bn) over the coming decades.