European Union tells members to plan for ‘worst possible outcome’ from Brexit talks

Lloyd Doyle
July 20, 2018

Barnier also raised several practical problems with the plan, including the "major risk of fraud", and significant financial and administrative costs for businesses under the new dual system, and suggesting the United Kingdom operating lower tariffs than the European Union would hand them a competitive advantage which damaged the European Union 27 countries financially.

The EU says it is "working day and night for a deal ensuring an orderly withdrawal", but that even if there is a deal, "the UK's withdrawal will undoubtedly cause disruption, for example in business supply chains".

Mark Carney, governor of the Bank of England, has been urging the EU to come to a deal on derivatives, without which European banks and corporations would... "We need an all weather insurance policy", he said. The Commission likes to say it began its preparedness research when the United Kingdom government began the mantra of "no deal is better than a bad deal" though that, I think, is questionable. "We [EU] have to be calm and prudent not to put oil on the fire", the official said.

The commission's document pointed out that important issues, such as the protected geographical indications, the protection of personal data transferred to the United Kingdom, the police and judicial cooperation, dispute settlement in the withdrawal agreement including the role of the EU's top court, still have to be hammered out.

The French government has said Theresa May's capitulation to Brexiters in parliament since the publication of the Brexit white paper has made the task of negotiating a deal "even harder".

Getting an outline on those is vital to solving the biggest obstacle to the urgent withdrawal treaty - how to avoid customs and other friction on the new EU-UK land border in Ireland.

Pro-Brexit MPs managed to push through an amendment this week to a trade bill, that excludes the possibility of the establishment of a customs border in the Irish sea - so practically ruling out this backstop option.


"But we have to protect the consistency of the single market and we have to make sure we keep our autonomy of decision".

Michel Barnier has said Theresa May's plan for a future trade relationship with the European Union could weaken the single market and create burdens for business.

The plan has infuriated fervent Brexit supporters, who think sticking close to the bloc would limit Britain's ability to strike new trade deals around the world. "I'm looking forward to intensifying, heating up the negotiations", the new Brexit minister said in Brussels.

Barnier is due to report back on his meeting with Raab to ministers from the other 27 European Union states on Friday.

But noone expects a unified message coming out of that meeting as the commission's negotiating team is still clarifying some of the white paper's proposals.

However, Barnier added many questions remained and the proposals in the white paper needed to be workable and should not create more bureaucracy.

It stresses that an exit deal must be ready by October 18's summit of the EU leaders in 13 weeks" time; it says this should be accompanied by a "political declaration" on wishes for the future UK/EU relationship (to form the basis of further talks in a transition period) and if this is achieved it will be "just in time' to allow for ratification by the UK and EU parliaments.

Other reports by Iphone Fresh

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