Tear up divorce bill or Brexit talks will collapse, says Davis

DAVID Davis is ready to warn EU leaders that Brexit talks face collapse unless Brussels tears up its current demands for a ‘divorce bill’.

Discussing the contentious payment for the first time this week, UK negotiators rubbished the bloc’s financial demands and accused the EU of forcing Britain to pay for ‘everything including the kitchen sink’.

So far Brussels chiefs have refused to discuss any future trade deal until Britain agrees how much it is willing to pay towards an exit bill that could reach £90billion.

But last night Theresa May appealed to EU leaders to kickstart the stalling talks or face a backlash from businesses across the continent which will suffer. And following a hostile meeting in Brussels, the Brexit Secretary is preparing to call on leaders of the 27 remaining member states to soften their demands.

British officials believe Michel Barnier, chief negotiator for the European Commission, has been left with little wriggle room due to the ‘rigid’ mandate previously set by EU leaders. While the UK has guaranteed it will pay some money as part of any deal, the EU is determined to extract tens of billions to plug the hole left by our departure.

British negotiators have this week presented 11 pages of legal advice, after months of dispute over our obligations, which raise significant concerns about the legality of the EU demands. The UK believes a Commission paper setting out the supposed obligations is ‘not satisfactory’ and wants to scrutinise each financial demand individually. A source familiar with the UK’s negotiating position said: ‘Nobody would write a cheque on the basis of the Commission’s four-page paper.’

The discussions come amid a deepening war of words over how to find agreement on the issue, with British ministers desperate to start trade talks as soon as possible.

In a bid to get Brussels to see sense last night, the Prime Minister, speaking from Japan, said: ‘I think a good trade deal is not just about the UK, it is about what is good for businesses in what will be the 27 remaining states of the EU as well.’

Despite his stern warnings as the third round of negotiations started on Monday, Mr Barnier yesterday hinted at compromise if Britain provides more detail about its position. He said in Brussels: ‘We need to know their position and then I can be flexible.’