Stalemate for May as Merkel and Macron obstruct start of trade talks
JUNCKER GETS UP CLOSE AND PERSONAL WITH PM, BUT...
THERESA May was left frustrated last night after failing to make significant progress in crunch talks with EU chiefs in Brussels.
European Commission president JeanClaude Juncker agreed to ‘accelerate’ negotiations after dinner with the Prime Minister yesterday.
But Mrs May was forced to accept the EU’s ‘rigid’ plan despite complaints from British ministers that it is blocking progress.
She faced further pressure when documents emerged hours before her meeting with Mr Juncker revealing that France and Germany are toughening up their demands.
After a frenzied round of diplomacy aimed at unlocking the current negotiating stalemate, the Prime Minister had hoped the European Commission president could help to end the current impasse.
But her push to kick- start trade talks appeared to fall flat despite hopes of making a breakthrough before a crucial meeting of EU leaders on Thursday.
The only development after last night’s dinner – described as ‘ constructive and friendly’ – was a joint commitment by Mrs May and Mr Juncker to ‘accelerate’ talks.
However, the vague agreement fell far short of No 10’s desire to open trade negotiations and begin to plan a transition deal. There are growing fears that the conflicting approaches could lead to a walkout by the British side in the coming weeks as negotiators wrangle over money before the next European Council meeting in December.
The Brexit process is in danger of collapsing unless the EU agrees this week to move talks on to trade, a source told Bloomberg News.
Faced with pressure from France’s President Emmanuel Macron and Germany’s Chancellor Angela Merkel, the EU has rowed back from a commitment to open talks on a transition deal with Britain.
The hardline approach emerged despite Mrs May appealing directly to the French president yesterday in an attempt to find a breakthrough before Thursday’s summit of EU leaders.
Both Mr Macron and Mrs Merkel, who spoke to Mrs May on Sunday, are adamant the UK must formally agree to pay its ‘divorce bill’ before trade talks can advance. In a uni- fied rebuke, the two leaders are understood to have told the Prime Minister they will not permit the next phase of talks unless the UK puts more money on the table.
The move has infuriated ministers in London, who are adamant the UK cannot agree to spending huge sums of money until the final stages of negotiations.
The EU’s unwillingness to back down from its original strategy was outlined in updated draft conclusions for this week’s summit that emerged yesterday.
Redrafted after pressure from Berlin and Paris, it says trade talks are not inevitable. The document spells out that the UK must first make progress on ‘each of the three issues’, a reference to the Northern Ireland border, the ‘divorce bill’ and the rights of EU citizens living in Britain after Brexit. It also inserts a reiteration that the European Court of Justice must be allowed to oversee any deal on citizens’ rights, despite Mrs May’s determination to end the court’s jurisdiction.
As the PM travelled to Brussels last night, Cabinet colleagues expressed their frustration. Chancellor Philip Hammond said: ‘It’s become apparent that that process isn’t going to facilitate the most effective negotiation. There are people on both sides that say, “Let’s break out of this, let’s just get round the table and start looking at what the options are to move forward”.’
His warning was echoed by Boris Johnson, who urged the EU to ‘stop letting the grass grow under our feet’ by refusing to engage in talks on the UK’s future relationship with Brussels.
British diplomats are pushing for Mrs May to be allowed to address fellow EU leaders during the meeting later this week despite Brexit discussions not formally starting until after she has left on Friday.
Mrs May was joined by Brexit Secretary David Davis and Olly Robbins, who heads the UK Brexit team, for last night’s meal with Mr Juncker and chief EU negotiator Michel Barnier. One EU diplomat said: ‘It will either be a very expensive dinner, costing about 30 billion euros (£27billion), or else – what is this?’