AT LONG LAST... HAS EU FINALLY GOT THE MESSAGE
Europe’s ‘ greater appreciation’ of our demand for sovereignty
EU chiefs appear to be buckling over the PM’s demands that British sovereignty must be respected.
The Daily Express understands UK officials believe they have a better chance of a breakthrough as Brexit talks continue this week.
They think that Brussels is now showing a “greater appreciation” of Britain’s position in negotiations.
The change came as Boris Johnson and Ursula von der Leyen, European Commission president, agreed that talks would go on, having previously suggested that
yesterday would be the absolute deadline for progress.
This gives both sides a fortnight to find a way to break the deadlock before the Brexit transition period ends on December 31.
If no trade deal is agreed by then, Britain will walk away and begin trading on World Trade Organisation terms from January 1.
Sources close to the talks said each side had made progress on the “level playing field” issue – a trade policy that prevents businesses in one country gaining a competitive advantage over those operating in other countries.
It is one of the key differences between the sides after the EU dropped its “ratchet clause” demand for Britain to be permanently tied to its regulations.
The two teams are now exploring how the UK can be allowed a “managed divergence” from the EU’s rulebook, so Eurocrats will not have free rein to slap Britain with punitive trade tariffs at short notice. Negotiators were said to be working on a solution that would take future trade disputes to an independent committee if either side believed a rule change created an unfair competitive advantage.
A senior EU source said: “The defence of the single market is a red line for the European Union. What we have proposed to the United Kingdom respects British sovereignty. It could be the basis for an agreement.”
The negotiations between Britain’s chief negotiator Lord Frost and the EU’s Michel Barnier appear to be homing in on the dispute mechanism for solving any future alleged breaches of a deal.
It means the chances of a deal appear to hinge on whether both sides can agree on the make up and powers of an independent arbiter to settle any future disputes.
One senior minister said: “It all boils down to making sure any arbiter gives us the freedoms we need and the reassurances they need. It must be independent and both sides must have confidence in it.
“It’s also worth remembering that if Britain decides at any point in the future that a deal is no longer working, it can cancel the deal, which would be a lot more straightforward than leaving the EU in the first place.” Another source close to the UK team signalled that the fact talks are continuing means there is still hope of a resolution.
The insider said: “They have moved and there is a chink of light but there is more work to do.”
Speaking after his talks with Ms von der Leyen and then an emergency Cabinet meeting, Mr Johnson said both sides will try “with all our hearts” to strike a deal. But he warned the UK should get ready to trade on WTO terms as a no- deal exit remains the “most- likely” outcome.
He said: “As things stand, and this is what Ursula and I agreed, I’m afraid we are still very far apart on some key things.
“But where there is life, there’s hope. We are going to keep talking to see what we can do. The UK certainly won’t be walking away from the talks. I think people will expect us to go the extra mile.”
“What we can’t do is compromise on that fundamental nature of what Brexit is all about, which is us being able to control our laws, control our fisheries. It’s very, very simple – I think our friends get it.”
The Prime Minister also said he was willing to talk directly to EU leaders after German chancellor Angela Merkel reportedly rebuffed discussions.
A joint statement by Mr Johnson and Ms von der Leyen said: “We had a useful phone call this morning. We discussed the major unresolved topics.
“Our negotiating teams have been working day and night. And
despite the exhaustion after almost a year of negotiations, despite the fact that deadlines have been missed over and over, we think it is responsible at this point to go the extra mile.
“We have accordingly mandated our negotiators to continue the talks and to see whether an agreement can, even at this late stage, be reached.”
Talks between Lord Frost and Mr Barnier will continue today following a frantic weekend.
Encouragingly, European Council president Charles Michel said the EU was ready to accept Britain as an independent state.
He said: “We want open economies but based on fairness, on reciprocity. If the UK decides to deploy massive state aid in certain economic sectors it’s their right, it’s their sovereignty.
“But it’s the European sovereignty and right to not accept unfair competition for European businesses and therefore indirectly for the men and women of Europe who work in these companies. It’s common sense. We do not want an agreement at all costs, what we want is a good agreement that respects the principles of economic fair play.”
In a private memo to European capitals, seen by the Daily Express, EU officials seemed happy that the wrangling had been extended.
It says: “We welcome the update from the negotiations that progress and that negotiations will continue. The next days will be important.”
Meanwhile, European officials are working on plans for any free trade deal to be ratified at the last- minute – possibly as late as December 28.
Earlier, Foreign Secretary Dominic Raab insisted that EU demands on fishing – reportedly including a 10- year transition to UK sovereignty over its own waters – were “outlandish”. He did not rule out trade talks continuing into 2021, adding: “Of course if we’re 99 per cent there on the outstanding issues you wouldn’t want to leave any stone unturned but I think it’s quite a high bar.” He spoke after French president Emmanuel Macron vowed he would not give up France’s “share of the cake” when it comes to fishing rights in UK waters.
Meanwhile Labour’s Ed Miliband, the shadow business secretary, said “both sides have to compromise” and urged the PM to “stand up for the national interest”. He told the BBC: “He is playing Russian roulette with the jobs and livelihoods of people up and down the country.”