Is EU softening its line on trade?

THE EU’s chief Brexit negotiator has softened his stance on a key Brussels red line, it emerged last night, and is willing to link the UK’s £39billion ‘divorce’ bill with a trade deal.

The significant concession by Michel Barnier, who had previously insisted there should be no link between the two major issues, came after a series of one-on-one meetings with new Brexit Secretary Dominic Raab.

Mr Raab has been demanding a link between the payment of the Brexit bill, which has been set at £39billion, and a commitment from the EU to a future trading relationship.

Privately, ministers believe it would be almost impossible to persuade MPs to sign off on the divorce bill this autumn without any trade guarantees or clear detail about what the UK would receive from the EU in return. The disclosure was made in the minutes of a meeting that Mr Barnier held with British MPs from the Exiting the European Union Committee in Brussels on Monday, and could ease the Government’s task of getting the Brexit withdrawal agreebut ment through Parliament. The minutes show Mr Barnier signalled the shift of tone while under questioning from Tory MP Jacob Rees-Mogg. Mr Barnier said: ‘We may work on a possible link. I don’t know what legal form that will take there may well be a link. There might be a link between the Withdrawal Agreement [which includes the Brexit Bill] and the political declaration.’

Mr Raab’s regular meetings with his EU counterpart, in contrast to former Brexit Secretary David Davis, is believed to have helped him press the political necessity of securing such a guarantee. The pair are said to have a good working relationship.

However, the minutes show Mr Barnier remained firm on other red lines – and even defended the European common market by quoting Margaret Thatcher. He also ruled out the idea that a series of ‘mini deals’ could be done to keep things running normally in the event of ‘no deal’, raising the prospect of chaos at ports and on roads.

He told the MPs: ‘Now if there is a no deal there is no more discussion. There is no more negotiation.’

Yesterday Chancellor Philip Hammond used a meeting of finance ministers in Vienna to insist it was equally important for the remaining 27 EU states to avoid a no-deal Brexit, as it could impact on European elections being held just after Britain leaves on March 29.

He said: ‘It’s not in anybody’s interests to have a Brexit without a deal.’

Good working relationship