Is Germany about to end Brexit deadlock?

THIS paper has enormous sympathy with the prominent Brexiteers, led by former chancellor Lord Lawson, who say the Government should lay down an ultimatum to the EU: Make progress on a trade deal at today’s summit, or Britain will walk away from the table.

The truth is that this country’s negotiators have bent over backwards to be reasonable to our European partners. They’ve offered firm guarantees to uphold the rights of EU citizens settled in Britain, while putting forward sensible proposals for keeping the Irish border free from physical barriers.

On top of this, Theresa May has made a hugely generous offer, worth some £ 20billion, to keep paying our EU membership fees during a transition period of about two years after Brexit.

She has also made clear that we will settle any additional legal liabilities (though many will argue that Brussels owes us cash for our share of the EU’s assets).

Yet still Jean-Claude Juncker and his chief negotiator Michel Barnier refuse to discuss trade, claiming they need more ‘clarity’ from the UK.

What a charade. As becomes clearer every day, all they really want is more money to prop up their sclerotic bureaucracy – and never mind about the millions of EU citizens whose livelihoods depend on access to British markets.

Only yesterday the president of the European Parliament spelled out the true sticking point when he preposterously dismissed Mrs May’s offer as ‘peanuts’. If £20billion is peanuts, the Pacific Ocean is a puddle.

No wonder Lord Lawson and his fellow Brexiteers are pressing for an ultimatum. As they rightly point out, economically robust Britain (look at yesterday’s jobs figures) has less to fear than many imagine from trading with the EU on the same internationally agreed terms as America.

Meanwhile, walking away from the table now would give businesses the certainty they need and the time to prepare. We could also start enjoying significant economic benefits – such as cheaper food imports and taking back control of our money – on Day One of Brexit in 2019.

Yet one hugely significant development gives pause for thought. This was yesterday’s leak of a German government document, revealing that Berlin is drafting a comprehensive deal with post-Brexit Britain, covering everything from trade to security, energy, air travel and research.

Certainly, we should step up preparations for the possibility of no deal – and the time for an ultimatum may yet come. But isn’t this document clear evidence that the clamour for a mutually advantageous agreement is growing in the places where it matters?

Mr Juncker and Co may stall – but never forget that it’s Angela Merkel who ultimately calls the EU’s shots.