French revolt opens door to EU climbdown on Brexit
FRANCE and other EU nations have signalled they are willing to begin Brexit trade talks as early as October in a move that opens the door to a climbdown by the EU, The Daily Telegraph has learnt.
Senior French diplomats have made clear they want to see the deadlocked Brexit talks make progress, in the first sign of splits emerging in the EU.
Under the terms of a proposal set out by France, the UK is being encouraged to request a three-year transitional deal if it continues to pay into the EU Budget and accepts EU law.
This position puts Paris at odds with hardliners in Brussels and Michel Barnier, the EU’S chief negotiator, who are insisting there can be no trade talks until the Brexit divorce bill is settled.
It represents a significant boost for David Davis, the Brexit Secretary, who today travels to Brussels for face-toface talks with Mr Barnier.
Mr Davis will tell Mr Barnier that Brussels must show more “flexibility and imagination” as he seeks to break the deadlock in negotiations. He said: “For the UK, the week ahead is about driving forward the technical discussions. We want to lock in points where we agree, unpick where we disagree, and make further progress on a range of issues. But in order to do that, we require flexibility and imagination.”
It came as the German Chambers of Industry and Commerce urged the
EU to push ahead with discussions on a future trading relationship amid concerns that Brexit will have a “major negative impact” on businesses.
The French overture on a transition deal was confirmed by two separate senior UK sources and points to underlying cracks in EU unity.
British ministers are adamant the UK will not write any cheques unless payments are linked to a future trade deal, while Mr Barnier insists there can be no trade talks until the money question is settled.
Tensions between the two sides increased further last week after Brussels officials accused Theresa May’s government of “magical thinking” over Brexit.
EU officials have warned they are “increasingly doubtful” that talks can progress onto future relationship questions in October as originally envisaged, while British officials are demanding “more flexibility” and accusing the EU of “dragging its feet”.
However the French position on transition arrangements offers the potential to break the impasse, leading EU analysts said last night, and reflects growing concerns among EU member states that time is running out to achieve a non-disruptive Brexit.
According to information seen by The Daily Telegraph, the French version of transition would see the UK continue accept EU law for a fixed two or three year period after Brexit while paying €10billion (£922.8 million) a year.
The payments would fill the immediate €10billion-a-year “black hole” left by Brexit in the EU’S seven-year budget cycle after 2019 and satisfy moderate voices in Brussels.
Charles Grant, director of the Centre for European Reform, said: “Many top officials in the EU and in governments would welcome an offer of €10billion-ayear for three years as part of a transitional deal that would move the talks process forward.
“If the British get their act together and make a serious offer on the money to their partners they will not only put the EU on the defensive, they will also expose the divisions in the EU on how to respond to the money deadlock.”
Officials believe that the €10billion-ayear payment will make it more difficult for Brussels hardliners to claim that Britain is not prepared to commit to making substantial payments towards a divorce bill.
“There are actually a large number of member states that want to start talking about future trade relations,” said Mujtaba Rahman, chief EU analyst at the Eurasia Group political consultants, though adding that no one was prepared to break ranks for now.