One last chance to avoid No Deal
BORIS Johnson was given a stark warning last night that Britain is heading for a disastrous no-deal Brexit unless he concedes more ground to the EU.
The PM had what one insider called a “frank and realistic” telephone chat with European Commission president Ursula von der Leyen.
Between them the pair salvaged the stalled negotiations from total collapse.
But Mr Johnson and Ms von der Leyen said in a joint statement there will be no trade deal unless deep-seated differences are resolved.
They failed to make any progress on unravelling the stalemate over state aid, fisheries and who has the right to police future relations.
With time running out before the end of the transition period on December 31, UK negotiator Lord David Frost and EU counterpart Michel Barnier will meet today with a deadline of Monday to reach an accord so MPs and European counterparts can scrutinise it.
Mr Barnier said. “We will see if there is a way forward.”
But Ms von der Leyen ominously warned “no agreement is feasible” without a resolution of the sticking points. And a European Commission source said of the call: “There was not a great meeting of minds on the outstanding issues. Both expressed the desire for a deal, but the EU President was strong on the need for compromise.”
She said the Commission now regards hopes of a deal as resting on Mr Johnson’s shoulders.
Crashing out with no deal risks plunging the UK into greater economic and political chaos on top of the damage caused by Covid.
It could lead to massive job losses, especially in the services and finance sectors.
The EU accounts for 47 per cent of Britain’s total trade, with a UK deficit of £79billion. We have a surplus in trade with other countries of £49bn, but most of that is wrapped up in 40 deals done by the bloc. Up to 20 of these should roll over, covering 50 countries.
A £39bn deal was signed with China last month and negotiations are under way with the US, Australia and New Zealand.
Tory MP Andrew Bridgen, a hardline Brexiteer, praised Mr Johnson for standing up for the “bottom” line of sovereignty, adding: “We are now stretching the very elasticity of the wire”.
There was no great meeting of minds between the two on issues that remain
EU SOURCE ON THE PM’S CHAT WITH COMMISSION PRESIDENT
But Rachel Reeves, Labour’s Shadow Minister for the Cabinet Office, said: “The British people were promised a deal and we urge both sides to get on with reaching an agreement.
“We can then focus on the job at hand which is securing the economy and rebuilding our country from the pandemic.”
After growing optimism last week, the talks were derailed when Emmanuel Macron upped demands for fishing rights in British waters.
The French president, who faces an election in 2022, was playing to his domestic audience.
The dispute was also a cover for deeper-seated worries in France and the Commission over the “level playing field” on state aid.
They claim British industries will have unfair advantages unless levels of permitted state support to businesses are specifically limited in the deal.
The clash goes to the heart of the PM’s election promise to “level up” the country. His plan will involve boosting public spending on industry in deprived areas and former “red wall” seats, which were flipped by the Tories last year.
Even if a deal is agreed by Monday, the PM must sell it to Parl iament wi th MPs demanding time to check it. Ms Von der Leyen must win agreement from the 27 EU heads of state by this Thursday’s European summit.
Former Brexit Secretary David Davis believes final ratification could drag on “for months” and a temporary transition extension will be needed.
A deal will mean Britain avoids the imposition of trade tariffs at midnight on December 31, which would send food prices rocketing.
But chaos is still expected at the border, with queues of up to 7,000 lorries turning parts of areas around Dover into giant truck parks.
Drivers could be stuck for days, with cargoes of rotting food. From January there will be other changes for UK travellers to EU countries.
Pet passports will no longer be valid and animals will require certificated anti-rabies jabs.
Labour leader Keir Starmer faces deep splits in the party’s senior ranks, with several Shadow Cabinet members threatening to resign rather than vote in favour of any deal.
A sticking point is the Government’s plan to bring back the Internal Market Bill which would allow ministers to break international law.
Sir Keir, who faces a showdown party summit tomorrow, believes failing to support a deal would be like putting “two fingers up to voters”. But Shadow Chancellor Anneliese Dodds and former leader Lord Kinnock are among those within the party who argue its MPs should abstain in a vote, so Mr Johnson “owns” economic damage caused by Brexit. Ireland’s Taoiseach Micheal Martin said: “Every effort should be made to reach a deal.”