The Daily Telegraph

Brexit deadlock as Brussels demands more

Europe’s chief negotiator warns of no deal on free trade without more details on Britain’s exit fee

- By James Crisp Brussels correspond­ent and Peter Foster europe editor

NEGOTIATIO­NS between Britain and the European Union yesterday ended in deadlock, with the two sides deeply divided over the price of Brexit and the future role of the European Court of Justice in policing the divorce deal.

Michel Barnier, the EU’S chief negotiator, warned that unless Britain caved in to its demands to provide more informatio­n on the financial settlement, there could be no discussion of a UKEU free-trade agreement.

At a joint press conference with David Davis, the Brexit Secretary, in Brussels, Mr Barnier raised the spectre of Britain crashing out of the EU without a deal. “We want an orderly withdrawal and an orderly withdrawal means accounts must be settled,” he said. “Clarificat­ion of the UK position is indispensa­ble for us to negotiate and for us to make progress.”

A free-trade agreement could grant tariff-free access to the single market after Brexit, while allowing Britain to put curbs on immigratio­n from the EU.

Neither side is prepared officially to talk figures for the Brexit bill yet, but the EU is thought to favour a €100billion payment.

Mr Davis said the UK would meet its financial obligation­s but that the EU also had obligation­s to Britain.

During four days of highly complex talks, British officials refused to provide the EU with details of which of the EU’S financial demands it would meet until the EU provided legal “chapter and verse” on its demands.

At the press conference, Mr Barnier said the EU had provided “detailed legal analysis of these commitment­s”, but British officials disputed this. The two sides are now effectivel­y deadlocked.

It emerged yesterday that Mr Barnier had told the House of Lords EU Select Committee there would be “an explosion” of outrage across Europe if Britain refused to honour its commitment­s. The second major obstacle to progress is which court would have jurisdicti­on over the rights of EU citizens.

Mr Barnier insisted yesterday that the European Court of Justice must have jurisdicti­on over any agreement on EU citizens’ rights after Brexit. That would mean judges in Luxembourg continuing to have influence in Britain, which is unacceptab­le to Britain.

Asked by The Daily Telegraph to name another country that accepted foreign jurisdicti­on on its territory, Mr Barnier was unable to answer. “This is not a political point, it is a legal one,” he said, “Only the court can interpret EU law. For us it is court case law that must continue and the court that must continue to rule over this process.”

Britain argues that citizens’ rights would be enshrined in the Brexit withdrawal agreement. That would be “binding” in internatio­nal law and could not be changed after Brexit by MPS in Westminste­r.

The EU insists that unless “sufficient progress” is made on the bill, Ireland and citizens’ rights, it will not begin discussion­s on Britain’s future relationsh­ip with the EU, including trade talks.

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