Brexit talks may crash

‘Vital’ for UK to increase offer on its exit bill. BRITAIN GETS ULTIMATUM ON KEY ISSUES

EU Brexit chief Michel Barnier said yesterday he is making contingency plans for the “possible” failure of divorce talks with Britain, which he has given two weeks to reach preliminary agreement on key issues. He told French weekly Le Journal du Dimanche: “It’s a possibility. Everyone needs to plan for it, member states and businesses alike. We, too, are preparing for it technically.”

He said that without a deal on post-Brexit trade terms, the EU and Britain would revert to World Trade Organisation tariffs, with trade ties “like those we have with China”.

On Friday, Barnier gave Britain a two-week ultimatum to make concessions on a divorce agreement to unlock the next phase of talks in December.

He said it was “vital” for Britain to increase its offer on its exit bill, which a figure senior EU officials put at up to €60 billion (R1 trillion) to open up talks on a future trade deal.

EU leaders decided at their last summit, in October, there was insufficient progress on the exit bill, Northern Ireland and the rights of three million Europeans living in Britain.

They said they hoped to open talks on future relations and a post-Brexit transition period at their next meeting, on December 14 and 15, but officials have warned that could now slip to February or March. –