EU will consider trade talks only after UK exit bill is decided

European Union economy chief Pierre Moscovici insisted on “first things first” in deadlocked Brexit talks with the UK and left open the possibility the parties may not move on to trade discussions after October.

The positions of the EU and the UK “are not at this stage fully compatible and that’s normal because we know this discussion will be long-lasting,” Mr Moscovici said.

“We must start by resolving the issues that are on the table, then we will think about our future relationship.”

He added: “It’s no secret that we think that we need to have a very strong trade relationship with the UK out of the EU, but first things first.”

Last week, Michel Barnier, the EU’s chief Brexit negotiator, said the talks still had done nowhere near enough for there to be a prospect of moving on to trade after October.

The big hurdle is the bill the EU wants the UK to pay.

The “basic principles” of the EU and the other 27 member states are that “the financial problems must be solved first of all and then we must be in full agreement with our British friends on the citizens’ rights – citizens from the EU living in the UK, citizens from the UK living in the EU and their families,” Mr Moscovici said.

He insisted the deadline for UK withdrawal would be met.

“We have no choice, we have no alternative. We know precisely what the timetable is, we know Brexit has to be solved by 29 March, 2019,” he said. Asked about UK Brexit secretary David Davis urging Mr Barnier to use “imagination” and flexibility to allow talks to move forward, Mr Moscovici countered that Mr Barnier is acting “in the name of the 27 member states, the 27 member states are really united”.

“We know where we want to go to, a clean, orderly and hopefully friendly Brexit – but also defending the interests of the citizens of the EU,” he said.