No progress in Brexit talks amid storm over divorce bill
AROW over the Brexit divorce bill has dominated the latest round of talks between the UK and the European Union, with both sides in the Brussels negotiations voicing their frustrations.
Brexit Secretary David Davis said there had been a “tough” discussion over the fee Brussels wants the UK to pay to settle its obligations after British officials challenged the legal basis of the demand.
Brussels’ chief negotiator Michel Barnier said there had been no “decisive progress” on key issues and the two sides were still “quite far” away from meeting the test of making sufficient progress for talks on future trading arrangements to begin.
Mr Barnier said it was clear the UK does not feel “legally obliged” to honour its “obligations” after leaving the bloc in March 2019.
Claiming there had been a shift in the Government’s approach, he said: “In July the UK recognised that it has obligations beyond the Brexit date but this week the UK explained that these obligations will be limited to the last payment to the EU project before departure.”
No figure has yet been put on the payment, but European Commission president Jean-Claude Juncker has suggested it could come in at around €60bn (£55bn), while unconfirmed reports have put it as high as €100bn (£92 bn).
Mr Davis defended the “rigorous”
line-by-line examination of the EU’s demands carried out by British officials in response to the “unspecified but undoubtedly large” sum demanded by Brussels.
He added: “It will, of course, lead to difficult exchanges – nobody will pretend it was anything but a tough exchange this week – but I think the British taxpayer would expect nothing less.”
Mr Davis said the UK side had presented its legal analysis, looking at on-budget issues, off-budget issues, and the European Investment Bank.
“It’s fair to say across the piece we have a very different legal stance, but, as we said in the Article 50 letter, the settlement should be in accordance with law and in the spirit of the UK’s continuing partnership with the EU.”
Mr Barnier acknowledged there had been some “fruitful” discussions on the issues surrounding the relationship between the Republic of Ireland and Ulster, but he struck a pessimistic tone overall following the latest round of Brexit negotiations in Brussels.
At a joint press conference with Mr Davis, Mr Barnier said: “We did not get any decisive progress on any of the principal subjects.”
The UK wants to begin trade talks as soon as possible, but Brussels insists that discussions about the future relationship after Brexit can only begin once “sufficient progress” has been made on the arrangements for withdrawal – including on the socalled “divorce fee”.
Mr Barnier said: “At the current state of progress we are quite far from being able to say that sufficient progress has taken place, sufficient for me to be able to recommend to the European Council that it engage in discussions on the future relationship between the UK and EU at the same time as we would, during the course of 2018, go on working on finalising the exit and withdrawal agreement.”
But Mr Davis said there had been “some concrete progress”, telling the conference: “This week we have had long and detailed discussions across multiple areas and I think it’s fair to say we have seen some concrete progress, and Michel referred to one but there’s more than that. However, as I said at the start of the week, it’s only through flexibility and imagination that we will achieve a deal that works truly for both sides. In some areas we have found this from the Commission’s side, which I welcome, but there remains some way to go.”
Mr Barnier said the single market would not be “undermined by Brexit”, as he warned that it was “simply impossible” to shape its legal order from outside.
“The European Council guidelines state that the Union will preserve its autonomy of decision-making,” Mr Barnier told the conference.
“The UK wants to take back control, wants to adopt its own standards and regulations – but it also wants to have these standards recognised automatically in the EU.
“That is what UK papers ask for. This is simply impossible. You cannot be outside the single market and shape its legal order.”
Mr Davis also said progress had been made on issues including Northern Ireland, the approach to post-exit privileges and immunities and confidentiality requirements for information after Brexit, but hit out at the rigid approach to the talks being taken by Brussels.
He said: “Our discussions this week have exposed yet again that the UK’s approach is substantially more flexible and pragmatic than that of the EU, as it avoids unnecessary disruption for businesses and consumers.”
In a message to Mr Barnier and his team, Mr Davis added: “We can only resolve some of these issues with an eye on how the new partnership between us will work in future.
“This is not about skipping ahead or trying to re-open previous discussions, it is about pragmatically driving the process we all want to see.”
Mr Barnier said that it would “not be fair” for EU taxpayers from the remaining 27 states to pay for the obligations undertaken when Britain was a member.
“In July the UK recognised that it has obligations beyond the Brexit date but this week the UK explained that these obligations will be limited to the last payment to the EU project before departure,” he said.
Mr Barnier went on to pledge that the EU was willing to intensify the rhythm of the negotiations, as he said the commitment from both sides “strengthens our determina-
tion and our spirit” to “go forward with the hope of getting an agreement”.
He said: “Time is flying, it is passing very quickly, if we need to, we on our side, on behalf of the 27, are prepared on behalf of the EU institutions to step up and intensify the rhythm of the negotiations.”
In an indication of the tensions between the two sides, Mr Davis said: “The European Union made a claim on the UK taxpayer for a large sum of money, unspecified but undoubtedly large, on the basis of what is determined to be our legal obligations.
“So the proper approach to that is to go through line-by-line and see whether or not we believe those legal obligations are correctly codified.”
Mr Barnier denied being angry about the way the talks were progressing, insisting he had shown the “typical calm of a mountaineer”, but said he was “impatient and determined”.
In the latest sign of the EU’s frustrations with what they perceive as the UK’s “cake and eat it” approach, Mr Barnier said the position papers produced by Mr Davis’s department appeared to want to retain the benefits of single market membership.
“In some proposals I see a sort of nostalgia in the form of specific requests which would amount to continuing to enjoy the benefits of single market membership, without actually being part of it,” he said.
Mr Davis shot back: “I would not confuse a belief in the free market for nostalgia.”
“At the current state of progress we are quite far from being able to say that sufficient progress has taken place .... – Michel Barnier Nobody will pretend it was anything but a tough exchange this week – but I think the British taxpayer would expect nothing less... – David Davis