Brussels is preparing for a no-deal Brexit
BRUSSELS is secretly preparing for Britain to leave the European Union without a deal, a senior EU official admitted yesterday.
Stefaan De Rynck, a key adviser to Michel Barnier, the EU’s chief negotiator, stressed it was ‘not a scenario’ the bloc wants.
But he conceded it was one they were getting ready for in a sign they believe Theresa May could walk away from talks if both sides do not come to an agreement.
His comments contradict those of European Council President Donald Tusk, who earlier this month said member states were not preparing for a no deal scenario.
He tweeted then: ‘EU27 is not working on “no deal” scenario. We negotiate in good faith and hope for “sufficient progress” by December. #Brexit.’
The revelation came after European leaders suggested Britain was ‘bluffing’ about a ‘no deal’ divorce after a high-stakes summit in Brussels.
Mr De Rynck told the Institute for Government think-tank yesterday: ‘There is a clear negative impact from no deal, I think that that is clear, for both sides but especially for the UK economy. But it is not a scenario people want to work towards.
‘We are preparing for it, that is for sure, but it is not a scenario that we in the negotiation room want to bring in that negotiation room.’
Tory MP Jacob Rees-Mogg said: ‘Our preparations for no deal are clearly putting pressure on the EU which desperately needs our money. Our tougher negotiating stance is clearly giving Brussels the collywobbles.’ But Mr De Rynck said a no deal would have ‘serious consequences’, including Britain falling out of international agreements.
If no trade agreement were to be reached by March 2019, he said the UK would become a ‘third country’ reliant on World Trade Organisation rules in many sectors of the economy.
A No10 spokesman said: ‘Both sides are obviously preparing for all scenarios as you would expect.’
Mr De Rynck also said transitional arrangements could be ‘wrapped up very quickly’ but only once progress has been made in divorce talks. He dismissed claims by Brexit Secretary David Davis that Brussels will push the deal down to the wire.
The EU does not want to ‘add risk’ to the exit process by ‘playing with time’, he said, adding ‘sufficient progress is not far away’.
Pro-European Tory MPs yesterday warned Mr Davis they are ‘deadly serious’ about rebelling against the Government unless they get the final say on Britain’s Brexit deal. Nicky Morgan told Mr Davis the rebels are not bluffing about supporting an amendment to Brexit legislation that would put the requirement for a vote into law.