EU deals a blow to UK hopes of early trade deal
Tense exchanges at third round of talks in Brussels
THE GOVERNMENT’S ambition to reach an early agreement on a future trading relationship with the EU have been dealt a blow after officials gave their strongest indication yet that the process will be pushed back until next year.
The third round of formal talks with Brussels drew to a close yesterday with a tense exchange between the Brexit Secretary David Davis and the EU’s chief negotiator Michel Barnier.
In a continuation of the highly antagonistic tone that has dominated this week’s meetings, Mr Barnier used the joint appearance to launch a fresh attack on the UK’s position on citizens’ rights and outstanding financial obligations. And responding to Mr Davis’ calls for the EU to be more “flexible” in its timetabling for trade talks, he suggested too little progress has been made to justify moving on to a future relationship until a withdrawal settlement has been agreed “during the course of 2018”.
His comments form the latest in a series of critical interventions by EU leaders and officials, with the European Parliament’s head negotiator Guy Verhofstadt claiming on Wednesday that progress has been “slow”. It marks a set back for Theresa May and David Davis, both of whom have expressed optimism that the European Union will agree to move on to discussions about its future relationship with the UK – including trade – by the autumn.
Earlier this year the European Council agreed a set of directives for the formal Article 50 negotiations, including a rule that talks will not be allowed to proceed to the next phase until “sufficient progress has been achieved” on the terms of Britain’s exit. This includes an agreement on the rights of EU and UK nationals, how to manage the border between Northern Ireland and the Republic, and any outstanding payments resulting from commitments such as the latest round of regional development funding. This so-called divorce bill has proven a key sticking point throughout the Brexit process, with some estimates putting the figure at around £55bn.
Speaking to reporters in Brussels, Mr Barnier claimed that no “decisive progress” had been made this week and that it was clear the UK does not feel “legally obliged” to honour its financial obligations after leaving the bloc.
He concluded that the two parties “are quite far from being able to say that sufficient progress has taken place... 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.”
Mr Davis defended the “rigorous” examination of the EU’s demands carried out by British officials in response to the 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.”
Nobody will pretend it was anything but a tough exchange this week. Brexit Secretary David Davis.
THERESA MAY has once again been forced to defend her position as Conservative leader following a backlash over her pledge to lead the party into the next general election.
Responding to critics, the Prime Minister stood by her commitment as she insisted that the public wants to see her government “get on with the job”.
Her defiance was welcomed by some Tory MPs, who continue to argue there is no appetite in the party or the country for another leadership contest.
However, others cast doubt on Mrs May’s longevity in Downing Street, suggesting it would be “difficult” for her to steer the party through another campaign.
Question marks have hung over the Maidenhead MP’s leadership since her disastrous performance in June’s snap election.
In the space of two months, the party went from being on track for a landslide victory to losing its Parliamentary majority.
This immediately gave rise to speculation that Mrs May would stand down, triggering the second Conservative leadership contest in as many years.
Early frontrunners included the Brexit Secretary David Davis, Foreign Secretary Boris Johnson and Home Secretary Amber Rudd.
A humble appearance before a meeting of the party’s backbench 1922 Committee appeared to shore up Mrs May’s position going in to the summer recess. At the time she promised to undo the “mess” created by the election and to serve the party “for as long as you want me”.
However, in a surprise move, the Prime Minister used an interview during her trade visit to Japan to state her new ambition to remain at the helm “for the long term”. Pressed to rule out stepping down before the next election, due in 2022, she replied: “I’m not a quitter.”
Her comments were welcomed by some of her former critics, with the Ribble Valley MP Nigel Evans describing it as “great news” and the North East Somerset MP Jacob Rees-Mogg insisting “it is right to back Mrs May and for her to continue”.
Her former leadership rival, Boris Johnson, also leapt to her defence, stating that Mrs May was “ideally placed” to deliver Brexit and he was “here to support her”.
But the former party chairman, Grant Shapps, suggested it was “too early” for the Prime Minister to talk about going “on and on” like Margaret Thatcher.
He went on to add that it was “probably the case” that nobody wanted Mrs May to face Jeremy Corbyn at the ballot box again.
“I think colleagues may well be surprised by this interview last night and I think it is too early to be talking about going on and on, as Margaret Thatcher once said,” he told the BBC,
“Let’s get some progress for the British people first, I think that’s the priority.”
The former Education Secretary Nicky Morgan – who was sacked by Mrs May last summer – also cast doubt on the likelihood that she would still be in office by 2022.
She told reporters that no leader wants to put a date on their departure in advance because it is a sign of “your own political mortality”. “[But] I think it’s going to be difficult for Theresa May to lead us into the next general election,” she said.
Meanwhile, Labour MPs accused her of being “deluded” with Shadow Justice Secretary Richard Burgon comparing her to an “under-fire football manager” about to be sacked.
However, Mrs May used a joint press conference with her Japanese counterpart Shinzo Abe to hit back at her critics.
Speaking to reporters, she repeated her statement that she “wasn’t a quitter” and that “there is a long-term job to do”, adding: “There is an important job to be done in the United Kingdom; we stand at a really critical time in the UK.”
The Prime Minister also used the event to stress that her administration would not be defined by Brexit. She insisted it was also focussing on tackling “long-term challenges” to reform the economy and tackle “injustices” including in mental health care.
She said: “These are real issues that we need to be dealing with and I’m there to do it.
“For most members of the public, they would say they want the Government to get on with the job and that’s exactly what I and the Government are doing.”
I think it is too early to be talking about going on and on. Former Conservative Party chairman Grant Shapps.