Pound fluctuates after EU’s Michel Barnier warns of ‘disturbing’ stalled talks over Brexit divorce bill and says no deal would be ‘very bad’
There were high hopes that EU politicians would decide there had been enough progress to move on to talking trade, but the EU have insisted that talks are still at a standstill on key issues
BRITAIN and the EU have ended the fifth session of Brexit talks with a "disturbing" lack of progress and "deadlock" over cash, the EU's Michel Barnier has declared.
In a joint press conference this morning, he said that "no deal would be a very bad deal" and the EU was preparing for "every eventuality".
Despite high hopes, Michel Barnier, the EU's chief negotiator, insisted today that he was "not able" to recommend that talks start on trade and our future relationship because of a lack of promises over money.
He said that no "massive steps forward" were taken and the UK was "still not ready" to spell out commitments.
The pessimistic official told Mr Davis today: "This week the UK told us again that it was not prepared to give more precision on its commitments, there will be no negotiations on this subject.
"On this basis, I am not ready to propose to the European Council to open negotiations on the future relationship."
He went on: "We have reached a state of deadlock which is very disturbing for thousands of project promoters in Europe and very disturbing for taxpayers."
After he uttered the phrase, the pound took a dramatic dip against the Euro, falling from 1.115 to 1.108.
But later it soared back up again later in the day - after a German newspaper report said that Mr Barnier could be prepared to offer the UK a two-year transition period as requested.
Mr Barnier said more needs to be done to secure a financial settlement, citizens rights and the Northern Ireland border before talks can carry on to trade.
The official stormed: "Let me be absolutely frank, we need to settle the accounts and we are in a position of deadlock at the moment."
Britain has said it WILL honour its financial commitments, but refused to sign off on a figure until we talk more about our future relationship we might get after we quit.
Mr Barnier went on: "I am sure with the political will on the basis of the commitments entered into by Theresa May in her Florence speech, we can find a way forward."
"Decisive progress is in our grasp within the next two months", he added.
But he insisted that there was "no question" of making ANY concessions on any of the issues.
He did admit that there was "new momentum" since Theresa May's Florence speech, and that both sides were still keen to secure a deal.
Boris Johnson calls for 'tiger in the tank' on Brexit talks
BORIS JOHNSON has called for the EU to put a "tiger in the tank
The Foreign Secretary said it was time for the EU to buck up and show greater urgency as time ticks on towards March 2019 and our exit date.
Speaking at a press conference earlier today, he said that Britain wanted to "get on with it to the next phase" where we can finally talk about our future partnership.
He said: "We are looking for some urgency from our friends and partners and it's time, I think, to put a bit of a tiger in the tank and get this thing done."
But EU officials have inisted not enough progress has yet been made - and insisted that Britain must cough up the cash in order to start the talks.
Mr Davis was more positive, telling reporters that the talks had helped to secure more "certainty" for EU citizens and "real and tangible progress" had been made in a number of issues.
He also vowed to "move heaven and earth" to secure a deal for Northern Ireland after Brexit.
The Brexit Secretary said he was "confident" that an agreement would be made but made another plea to the 27 heads of state to start talking about our future relationship as soon as possible.
"I hope the leaders of the 27 will provide ways to explore the ways forward for that in the same spirit of cooperation as the Prime Minister did in her Florence speech," he stressed.
And Theresa May said following the remarks today that she was confident that there has been "a lot of work" put into the talks and there "has been good progress made".
She told Sky News: "There are many issues on which we are very close to an agreement on this, such as citizens rights.
That is important, we want EU citizens to stay here in the UK.
But she also urged the EU to get on with talking about the future.
"That's what I set out in my Florence speech, a positive agenda for the future, we need to move on and talk about that," she said.
Following the press conference, Labour's Sir Keir Starmer wrote to the Brexit Secretary to ask him to secure an emergency round of talks with the EU to prevent the risk of no-deal.
He said that the Government had "failed to meet the target for this round of negotiations" and ministers have "wasted months fighting amongst themselves".
And he said: "The Government must recognise the gravity of the situation. They must drop their ideological red lines and work round the clock to find a resolution to the current situation."
Labour's Sir Keir Starmer writes to David Davis to ask him to secure another round of talks
Full text of the letter:
Dear David
Article 50 negotiations between the United Kingdom and the European Union
I write regarding the Article 50 negotiations between the UK Government and the European Union (EU) following today’s press conference.
The announcement of further progress on the rights of EU citizens and the issue of Northern Ireland is welcome. It is also encouraging to see a more constructive tone in the talks.
However, I am deeply concerned that more than six months on from the triggering of Article 50 this round of discussions has ended without an agreement, with the European Union warning of a “disturbing deadlock” over the divorce settlement. It now looks likely that the EU Council next week will not be able to agree negotiations have proceeded sufficiently to open up trade talks.
The deadlock in negotiations increases the risk of Britain crashing out of the EU without a deal. That would be catastrophic for jobs and living standards and must be rejected as a viable option.
That is why Labour is calling on the Government urgently to request an additional emergency round of talks with EU negotiators in the coming days to try and reach an agreement before next week’s EU Council meeting. The Government must recognise the gravity of the situation, must drop the ideological red lines and work round the clock to find a resolution to the current situation.
Given the significant interest in this matter, I am making this letter public.
Yours sincerely
Keir Starmer MP
Shadow Secretary of State for Exiting the European Union
David Davis replies to Sir Keir Starmer over Brexit talks
12 October 2017
Dear Keir,
Thank you for your letter today reacting to my press conference with Michel Barnier.
I am glad that you are encouraged by the progress made so far. As I said in negotiations with the EU, and in the press conference afterwards, we are negotiating in the spirit of pragmatism in order to deliver a new partnership with the EU that delivers for the whole country.
You are of course right to raise the importance of enabling the negotiations to move onto discussions about our future relationship. So to that end, I wonder why it is that your party has not taken action against the eighteen Labour MEPs who voted last week to block further talks. I recently wrote to your party leader on this subject, but am awaiting a response. Perhaps you could use this opportunity to clarify your party’s position on the European Parliament resolution passed last week?
On your specific point about ‘additional emergency talks’, it is not a question of time or effort - I have praised the diligence and hard work of both our teams, as has the European Commission - but of scope and content. As I said today, the key to answering many of these issues is to open up a discussion about the future. I hope you will join me in impressing on the EU27, when they meet at the October European Council next week, the importance of allowing Mr Barnier the ability to make progress.
It is not clear to me what you mean by ideological red lines. We are intent on delivering Brexit in a way that delivers control of our laws, borders and money, in line with the wishes of voters, and the national interest.
If you are prepared to spell out exactly how much taxpayers’ money you think we should offer the European Union in order to progress talks, or set out what role you see for the European Court of Justice after we leave the European Union, I would be happy to engage on your points in detail.
Yours sincerely,
RT HON DAVID DAVIS MP
SECRETARY OF STATE FOR EXITING THE EUROPEAN UNION
Yesterday EU Council boss Donald Tusk insisted that Brussels was still working towards a deal with Britain, but he put a December deadline on a Brexit breakthrough before the EU would start planning for n0-deal.
Mr Tusk, who represents all EU leaders, insisted Brussels was still working towards a deal with Britain adding “we are negotiating in good faith and hope for ‘sufficient progress’ by December.”
Last night it emerged that Germany were plotting to try and kick talks about a transition deal into the New Year.
The German government are trying to put a three month pause on separate negotiations about a transition phase for the UK out of the bloc.
Businesses have warned they will trigger their Brexit contingency plans - which could see them leave the UK - if clarity is not given soon.
But last night a briefing document from the Germany Finance Ministry said that they WANT the EU to give them access to Britain during any transitional arrangement.
It says that they need "national transition arrangements" in place between the EU/Germany and Britain when we quit in March 2019 - which will be a boost for Mrs May who has been fighting for an interim deal.
Mrs May has admitted that there are plans for a no-deal Brexit that have begun - but Philip Hammond has said he doesn't want to dish out the money just yet.
The PM turned on the spending taps to prepare and told the Commons that £250million was being handed out to make preparations.
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