Merkel ‘key’ to unlocking Brexit trade deal

BRITISH negotiators are banking on Angela Merkel to unblock Brexit talks after Michel Barnier accused the UK of wrecking the chances of a trade deal with the European Union.

Germany is at the helm of the sixmonth rotating presidency of the EU, which allows it to set the bloc’s policy direction until the end of the year.

A senior UK source close to the negotiations said the German chancellor’s reputation as a dealmaker on the European stage could be key to ending the impasse.

“It is definitely possible now with the (EU budget) wrapped up that member states will become more engaged in this process in Brussels and get them moving forwards politically,” the source said.

“The German presidency, obviously, should pay more attention to what’s going on, which I think has got to be helpful. Michel Barnier, in the final phase, hopefully ought to have some political guidance.”

Talks broke up in London on Thursday with Mr Barnier using a press briefing to accuse the UK of rendering a deal “unlikely” in light of the Government’s refusal to back down on its red lines.

Mr Barnier said the EU wanted “a balanced, sustainable and long-term solution” on access to UK fishing stocks to protect “the many men and women whose livelihoods depend on it”.

Brussels also wants Britain to commit to a so-called level playing field with oversight by the European Court of Justice. It wants the UK to apply its state aid rules after the end of the transition phase on Dec 31, and officials want British legislation to evolve in line with regulations from Brussels.

Downing Street argues that it is the EU that is refusing to engage. British negotiators said their efforts to discuss potential fishing stocks and quota shares were rebuffed, saying Barnier’s team had not “put enough meat on the bones” to even open talks on that area. Both sides said they would start working on a “text-based” negotiation when they meet again in London for informal talks next week.

David Frost, the UK’S negotiator, be- lieves a deal could be done in September, with EU leaders approving it at a summit in October. If no agreement is reached, the UK will trade with the EU on World Trade Organisation terms, meaning goods will be subject to tariffs and customs checks.

“Germany will get a deal because that’s what Merkel does,” said one EU diplomat. “They will be able to say they got agreements on the EU budget and Brexit in one presidency.”

A German government spokesman said the EU side would continue to approach negotiations with the UK with a united front.

“The mandate is clear,” said one EU diplomat involved in the negotiations. “You need unanimity to change it.”

Pieter Cleppe, a Brussels-based research fellow at the Property Rights Alliance, said Mrs Merkel would be “likely to go far” to avoid the “utter damage” that no deal would inflict on the economy of Germany and the EU.

“She will surely understand that support for the EU in countries like the Netherlands isn’t going to be strengthened if French intransigence would prevent reasonable concessions to the UK and thereby damage the Dutch economy,” he added.