Michel Barnier phones EU27- prepare for no deal Brexit – three main issues not resolved - Daily Express

The Brussels diplomat has told a private meeting of EU27 ambassadors that there may not be a trade agreement with Britain in place by the end of the year. He also revealed that the three main sticking points – fishing rights, common standards, including state aid, and governance – are still blocking progress. Mr Barnier debriefed the EU envoys on the state of play in the negotiations from London where he is currently locked in intensive talks with UK counterpart Lord Frost.

Sources say the two sides have been working around the clock in an attempt to break the current deadlock.

But it has emerged they are still far apart on the most contentious issues of fisheries and the so-called level playing field.

An EU diplomat said: "Differences still persist on the three main issues.

"A deal still hangs in the balance."

A source added: "Barnier says the three main issues are still unresolved and he can't say for sure that there will be a deal."

A third EU diplomat said: "We are quickly approaching a make or break moment in the Brexit talks. Intensive negotiations are continuing in in London. As of this morning it is still unclear whether negotiators can bridge the gaps on issues like level playing field, governance and fisheries.

"As we are entering the endgame of the Brexit negotiations, some member states are becoming a bit jittery. So this was mostly an exercise to calm nerves in Paris and elsewhere and to reassure member states that team Barnier will continue to defend core EU interests including on fisheries."

The pound slumped on the news, weakening by as much as 0.5 percent against the dollar – to below $1.34.

And the pound also hit a near-month low against the euro. 

Mr Barnier was ordered to hold the meeting by European capitals concerned he could offer too many concessions to get a Brexit trade deal over the line.

Diplomatic sources said the near-radio silence from the wrangling over a UK-EU trade agreement had unnerved some EU states. 

Last night, a source told Express.co.uk: “The main question is will what Barnier and Frost negotiate stand up in capitals?

“States are becoming more nervy as they receive less information from the talks.”

The source added: “To make that gap some large concessions are required and it remains to be seen whether some EU capitals are going to sell those back home.”

The French government was said to be spearheading the resistance against potential last-minute compromises in the Brexit trade talks.

Paris believes the bloc has "moved enough" to secure a deal and it is now down to Boris Johnson to edge towards the EU's position. 

President Emmanuel Macron yesterday threatened to sink a UK-EU trade deal as tensions over fishing right intensified.

He warned Brussels negotiators that his government could veto any agreement that doesn’t guarantee French fishermen access to Britain’s coastal waters.

Mr Macron lined up with Belgian premier Alexander De Croo in rejecting the possibility of a Brexit trade deal “at any cost”. 

Speaking at a joint news conference, the French President said: “Our two countries are among the most concerned by a Brexit we didn't choose. We are particularly vigilant on the level playing field, today and in the future, and the question of fishing.

“The preservation of the activities of our fishermen in British waters is an essential condition, the fair rules of the market in the future are equal.

“On the subject of Brexit our position has been constant - a deal must allow for a fair future relationship and France won't accept a deal that doesn't that doesn't respect our interests in the future.”

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2020-12-02 08:18:00Z
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