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Europe Daily Bulletin No. 11882
Contents Publication in full By article 16 / 30
INSTITUTIONAL / United kingdom

Deadlock on Brexit budget figures a week ahead of the European Summit

The last round of Brexit talks (on the United Kingdom’s exit from the EU) before the European Summit on 19 and 20 October ended on Thursday 12 October without any great advances, explained EU chief negotiator Michel Barnier on 12 October.  He said there was total deadlock on the question of the budget cost of leaving the EU.

At a press conference, Barnier and his British counterpart David Davis said progress had been made in the recent talks but stuck to their positions.

Disappointed, Michel Barnier said that the UK had this week told him that it was still not prepared to give details of the payments that the British PM, Theresa May, has recognised were due in her speech on 22 September in Florence (see EUROPE 1868).  Barnier said that only technical talks had been possible and for this reason, he was not certain it would be possible to open discussions on future relations.  He added that they were in an extremely worrying deadlock here for thousands of project organisers and taxpayers.

David Davis said that a rigorous examination of all the technical details of this question of finance had been done this week, but here wasn’t agreement on specific commitments, which would come later.

All the same, the British negotiator called on the European Summit to send positive signals for London.  The EU27 leaders may decide to amend Michel Barnier’s brief so that he can head discussions on a transition period of about two years requested by Theresa May.

The Brexit minister insisted again that the British government was preparing for all options, including a no-deal Brexit.  He explained that the government has already started putting money aside for such an option.

Political will

The EU’s chief negotiator said that with enough political will, obstacles could be removed and progress would be quite possible before the European Summit in December. He said he would pull out all the stops to settle these problems and reach an intermediate agreement with the UK that would make it possible to move as soon as possible to the second phase of talks on future EU-UK trade relations.

The two negotiators agreed to set new negotiations meetings on the divorce phase by December, but Barnier’s press office said on 12 October that the dates had not yet been fixed.

Progress on citizens’ rights

This week, progress was made on the question of the rights of citizens and how the Brexit deal might apply in the UK to protect Europeans still in the country or British citizens in the EU.

On this question, David Davis announced a simplified mechanism for renewing the residence status of Europeans already resident in the UK.  He said a simplified test would be set up for getting a new permanent residence status.

Michel Barnier said details were still needed on family regrouping, the export of social security and the role of the European Court of Justice, which the EU wants to have the power to interpret all areas of EU law.

Talks were also pursued on the question of Ireland, with the two sides agreeing on a number of principles to ensure full respect of the Good Friday agreement and cooperation between Ireland and Northern Ireland.  The two sides are drawing up a map of the areas of cooperation concerned.

On all these questions, the EU’s chief negotiator said on Thursday that he was awaiting certainty, but David Davis said that certainty could only be given if they talked about the future.

On Tuesday 17 October, the EU27 foreign ministers will be briefed in Luxembourg on progress in the talks by Michel Barnier, two days ahead of the meeting of EU leaders.

It is highly unlikely that the leaders will feel that enough progress has been made to move on to the next phase and discuss future relations.  There is speculation now about European leaders’ desire to make a gesture to Theresa May, who is facing difficulties, such as by making Michel Barnier responsible for discussing a transition period desired by London.  (Original version in French by Solenn Paulic)

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BEACONS
SECTORAL POLICIES
INSTITUTIONAL
EXTERNAL ACTION
ECONOMY - FINANCE - BUSINESS
SOCIAL AFFAIRS
COUNCIL OF EUROPE
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