No deal Brexit likely: EU starts ‘contingency planning’ instead of ‘necessary compromises' - Daily Express

According to Ireland's Foreign Minister, the EU has now stepped up no deal preparations over fears an agreement will not be reached before the end of this month. Although talks will continue this week, he claimed the "mood" in Brussels had now moved towards planning for a no deal rather than finding a compromise to reach a trade agreement. He said: "I think there is a great deal of frustration on the EU side, not just within the EU negotiating team, but also across member states.

"Many of the ministers I spoke to today are just getting increasingly frustrated and increasingly resigned to the fact that there may be no deal.

"In Brussels, the mood is starting to shift to contingency planning for a no deal as opposed to the compromises that are necessary to get a deal done".

Today, the Irish official had also warned Wednesday was the final deadline for a deal to be agreed. 

He also called for further intervention at the national level in order to break the deadlock. 

He said earlier today: "Beyond Wednesday we're into a European Council meeting and I think if there is no deal by Thursday, then leaders within the EU will certainly start to think about contingency planning for a no trade deal Brexit."

Today, Boris Johnson and EU Commission President, Ursula von der Leyen, held a call to discuss the current state of play. 

It was the second call the two have held in the last week and lasted for 90 minutes with both concluding the areas of divergence still remain. 

Mr Johnson will now travel to Brussels in order to attempt to break the current impasse between the two sides. 

JUST IN: Brexit LIVE: Remainers delight at Macron's demands for extension

"Whilst we do not consider this process to be closed, things are looking very tricky and there's every chance we are not going to get there."

It is thought Mr Barnier revealed the Wednesday deadline during a meeting with MEPs today. 

The EU needs any deal to be ratified by both the European Parliament and due to its nature, national governments.

Due to the short timetable, Brussels may ask national government to ratify the deal at a later date in order for it to be implemented as soon as possible. 

The areas of divergence being the level playing field, the dispute mechanism and fisheries have all remained throughout crunch talks. 

It is thought the EU's chief negotiator was pressured not to back down to the UK's demands over fisheries last week.  

At the heart of the issue is the quantity of fish caught by EU ships and the amount of access they are given. 

If the two sides failed to reach a deal, they will revert to annual negotiations on fisheries from January 1. 

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2020-12-07 20:17:00Z
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Johnson to go to Brussels in search of way out of Brexit stalemate - Financial Times

Boris Johnson is to travel to Brussels for make-or-break talks on a UK-EU trade deal, with negotiations deadlocked and warnings that there was “every chance” they may fail.

The British prime minister will meet Ursula von der Leyen, European Commission president, “in the coming days” as nine months of talks on a post-Brexit relationship between the two sides come to a head.

“We have made no tangible progress,” said a senior British official. “It’s clear this must now continue politically. Whilst we do not consider this process to be closed, things are looking very tricky and there’s every chance we are not going to get there.”

Mr Johnson and Ms von der Leyen agreed on Monday after a 45-minute phone call that their chief negotiators should “prepare an overview of the remaining differences to be discussed in person”.

Timings have not been confirmed, but the meeting could take place on Wednesday ahead of Thursday’s European Council meeting in Brussels. Both sides said Mr Johnson would not attend the 27-country summit.

Number 10 played down the idea that the scheduling of face-to-face talks might be a positive sign. One ally of the prime minister said: “The differences are every bit as big as they were before.”

The fact that talks are continuing in spite of disagreements on a fair competition “level playing field”, fisheries and the governance of any trade deal offered some hope that an agreement was still possible.

But Ireland’s foreign minister said there had been “no progress at all” in two days of intensive talks since the negotiation resumed on Sunday, saying other EU member states were becoming “increasingly frustrated”.

“In Brussels certainly the mood is starting to shift to contingency planning for a no-deal,” Simon Coveney told RTE television after arriving in Dublin from talks in Brussels. 

Mr Johnson’s allies have made it clear the prime minister is willing to walk away from talks, but Downing Street said he remained “keen” to strike a free trade agreement on the right terms.

People briefed on the Johnson-Von der Leyen call said that both sides felt it was time for political-level talks © Andrew Parsons/No10 Downing Street

The call between Mr Johnson and Ms von der Leyen was not intended to be an opportunity to cut deals on key sticking points, but rather to take stock of the two sides’ existing positions. Officials on both sides of the negotiations remained downbeat about the significant divisions that remain in key areas of the negotiations, and were making no predictions about the likelihood of a deal.

Things remain “very difficult”, said one EU official. The fact that Mr Johnson was coming to Brussels showed “things are not falling off the cliff, but we haven’t solved the issues in the past days that the negotiators were here. It shows more work needs to be done.”

Officials on both sides stressed that it was not surprising that Mr Johnson should be the leader who travelled, given that the two leaders last face-to-face meeting was in London.

People briefed on the call said that both sides felt it was time for political-level talks and Ms von der Leyen suggested she should play host after going to Downing Street earlier this year.

The independent Office for Budget Responsibility has warned that a no deal Brexit on January 1 would inflict a 2 per cent hit on the UK economy — about £40bn — and add around 300,000 to the jobless total next year.

Sterling fell as much as 1.6 per cent against the US dollar to touch a two-week low just above $1.32, before picking up later in the day, leaving it 0.8 per cent lower at $1.33 by late afternoon in London. 

People briefed on the talks said that negotiators on Monday had sought to tackle continued deep-rooted splits over fishing rights in UK waters and “level playing field conditions” for business.

On fisheries, a problem going into Monday’s talks was the UK’s continued resistance to guaranteeing access for European boats to its waters 6-12 nautical miles from the coast, as well as the length of a transition period covering fishing grounds further out.

Splits over the level playing field concern the EU’s determination to secure means of taking rapid redress against the UK if it seeks to gain an unfair competitive advantage through the use of subsidies or through having weaker environmental and labour regulations.

Earlier on Monday Mr Johnson attempted to lift the gloom hanging over the talks by offering to scrap controversial lawbreaking clauses from UK legislation relating to Northern Ireland.

Mr Johnson said that if the two sides reached an agreement on the operation of the NI protocol, part of Britain’s EU withdrawal deal, the contentious clauses would not be necessary.

Although welcomed in Brussels, one EU diplomat said that the move amounted to the UK “trying to use rogue behaviour as leverage”.

Mr Johnson had insisted on clauses in the UK internal market bill as a “safety net” to ensure the free flow of goods between the mainland UK and Northern Ireland in the event London and Brussels could not reach an understanding over how to apply last year’s deal and trade talks failed.

Ministers admitted the clauses would allow ministers to break international law, since the legislation would override Britain’s withdrawal treaty with the EU; the issue has dogged trade talks ever since.

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2020-12-07 19:49:00Z
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Brexit: Boris Johnson to go to Brussels as 'significant differences' hamper EU trade talks breakthrough - Sky News

Boris Johnson will head to Brussels for post-Brexit trade talks after a phone call with the EU Commission president ended with "significant differences" unresolved.

The pair spoke on Monday afternoon - their second conversation in 48 hours - but were unable to overcome the three remaining stumbling blocks: Governance, the level playing field and fisheries.

In a joint statement, the prime minister and Ursula von der Leyen revealed they asked their negotiators to "prepare an overview of the remaining differences" and will meet face-to-face "in the coming days".

Image: Ursula von der Leyen held a call with the prime minister on Monday

There is less than a month to go until the end of the transition period - due to expire on 31 December. It came into force after Brexit happened on 31 January.

Tensions are rising as talks go down to the wire, with businesses unsure exactly which rules they will be operating under and what costs products may incur for being exported or imported.

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Image: There is less than a month until the transition period ends

Both sides' had set a deadline of mid-October for the talks to conclude, but that has been continuously pushed back and may now continue towards a summit of EU leaders on Thursday.

A senior UK government source said "no tangible progress" had been made since Friday, when Brussels' chief negotiator Michel Barnier was in London.

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Image: Deal or no-deal will have big implications for businesses who export or import

"Whilst we do not consider this process to be closed, things are looking very tricky and there's every chance we are not going to get there," they added.

Rachel Reeves, Labour's shadow minister for the Cabinet Office, said the UK and EU should "get on with reaching an agreement".

She added the government was "failing to deliver their promises" and warned that clinching a deal was "critical to the British national interest for jobs and security".

On Monday morning, the pound had fallen by more than two cents against the US dollar to just over $1.32 as investors grew more anxious about the possibility of a no-deal outcome.

It was a sharp reverse from market optimism over the talks last week which saw sterling climb above $1.35 for the first time this year.

However, the UK currency was trading above $1.33 in the wake of the joint statement - and just below €1.10.

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2020-12-07 19:18:45Z
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Pound sinks as UK-EU trade talks enter 'critical stage' - BBC News

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The pound has fallen to its lowest level against the euro in more than six weeks, as traders reacted to the growing prospect of a no-deal Brexit.

In late afternoon trading in London, sterling was about 1% down against the single European currency at €1.098.

It also lost ground against the dollar, falling 0.83% to $1.3325.

UK-EU trade talks have entered a critical stage as they bid to reach a post-Brexit deal before 31 December, when the UK's transition period ends.

Disputes over fishing and business rules remain, with the UK government saying discussions in Brussels have reached "a critical moment".

The EU mood was described as "gloomy" as chief negotiator Michel Barnier met UK counterpart Lord Frost.

EU chief negotiator Michel Barnier and his UK counterpart Lord Frost are still locked in talks.

Cabinet Office minister Penny Mordaunt told the House of Commons: "We are at a critical moment in the negotiations."

She added: "We are all working to get a deal, but the only way that's possible is if it's compatible with our sovereignty and takes back control of our country's trade and waters."

Post-Brexit trade talks 'at critical stage'

Asked when the cut-off point for a deal was, a European Commission spokesman said: "We are not going to speculate on a last-chance date.

"We are fully committed to substantial negotiations. We've always said and continue to say it's the substance that prevails over timing."

Earlier, Irish Foreign Minister Simon Coveney described the EU negotiating team's frame of mind as "gloomy" and "downbeat".

The FTSE 100 share index drifted in and out of positive territory during the day, and finished virtually flat at 6,555 points.

Investors are also awaiting an EU summit starting on Thursday to break an impasse over a 1.8 trillion-euro coronavirus aid package, as well as the last European Central Bank policy meeting of the year on the same day.

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2020-12-07 17:20:00Z
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Brexit: Boris Johnson and Ursula von der Leyen to hold second phone call in 48 hours as olive branch offered - Sky News

Boris Johnson and European Commission President Ursula von der Leyen will hold a telephone call this afternoon as Brexit trade talks go down to the wire.

The prime minister will speak with the EU chief at 4pm (5pm in Brussels) to assess whether a post-Brexit trade agreement can still be reached.

Meanwhile, the government offered a concession to the EU and said it would drop the most controversial parts of its Internal Market Bill - which could break international law - following "good progress" in talks over Irish border arrangements.

This afternoon's phone call between Mr Johnson and Ms von der Leyen will be their second within 48 hours, after they agreed over the weekend to make a "further effort" to reach a deal, despite months of deadlock on key issues.

Saturday's call preceded another day of negotiations, which continued late into the night.

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Internal Market Bill is an 'insurance policy'

However the EU's chief negotiator, Michel Barnier, was said to have been "very gloomy" about the prospects of a deal when he spoke to the bloc's national ambassadors on Monday morning.

Irish foreign minister Simon Coveney told RTE news: "Having heard from Michel Barnier this morning, really the news is very downbeat.

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"I would say he is very gloomy, and obviously very cautious about the ability to make progress today."

One EU diplomat said: "EU-UK negotiations have entered the endgame, time is running out quickly.

"Despite intensive negotiations until late last night, the gaps on level playing field, governance and fisheries are still not bridged.

"The outcome is still uncertain, it can still go both ways."

Meanwhile, an EU source told Sky News they were "not expecting anything substantial yet" although they predicted "some more drama" and said trade talks were "moving in the right direction on fishing".

Image: There is less than a month until the end of the Brexit transition period

Downing Street said on Monday that "significant differences remain on critical issues", including fisheries, which was still being negotiated by the UK's team in Brussels.

The prime minister's official spokesman said: "Our negotiations are ongoing but we remain committed to trying to reach a free trade agreement, and that is what our team is there trying to achieve today, but we are clearly in the final stages now."

The spokesman also said the UK government was "prepared to negotiate for as long as we have time available if we think an agreement is still possible", after Mr Barnier reportedly told members of the European Parliament the deadline for talks succeeding is Wednesday.

In a bid to soothe tensions, the UK government also confirmed it would "be prepared to remove" two parts of the Internal Market Bill.

The draft legislation has been condemned by critics both in Westminster and across European capitals for allowing ministers to override the Withdrawal Agreement - the UK's divorce deal with the EU that was agreed last year.

The government has admitted the legislation could see the UK breach international law, but argue it is needed to protect the integrity of the UK and the Good Friday Agreement in Northern Ireland.

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'Significant differences remain'

Senior cabinet minister Michael Gove met with European Commission vice-president Maros Sefcovic in Brussels on Monday.

Following their meeting, the UK government released a statement saying it could scrap the controversial parts related to state aid and export declarations.

The bill is being debated on on Monday in the Commons after the Lords took out the same sections, but the government is expected to successfully reinsert them - setting up a "ping pong" battle between the two Houses.

Foreign Office minister James Cleverly told Sky News' Kay Burley those clauses would be reintroduced to the bill when it returns to the House of Commons today, with MPs set to vote on whether to keep or scrap the Lords' amendments this evening.

"It contains clauses that we may need to rely on and, if we do need to rely on them, better that they're there," Mr Cleverly said.

"It's an insurance policy, like all insurance policies you'd prefer not to have to use it. But you would kick yourself if you need it and it isn't there."

Asked whether it was worth risking the EU's anger by reintroducing the controversial legislation in full, Mr Cleverly replied: "Not having that in place would weaken our position and actually give an advantage to the EU negotiators.

"And, in a negotiation like this, it is really key that both parties negotiate hard - I'm sure the EU negotiators are negotiating hard, but so is David Frost (the UK's chief negotiator) and our negotiating team.

"We do it in a spirit of positivity, but we do want to get a deal that works for the UK, an agreement that works for the UK."

The EU's national leaders will gather for a summit in Brussels on Thursday, which will come just three weeks before the end of the Brexit transition period on 31 December.

The pound fell by more than two cents against the US dollar on Monday morning to just over $1.32 as investors grew more anxious about the possibility of a no-deal outcome.

It was a sharp reverse from market optimism over the talks last week which saw sterling climb above $1.35 for the first time this year.

Without a post-Brexit trade deal being agreed by the end of this month, the EU and UK are likely to have to trade on World Trade Organisation rules with tariffs imposed in both directions.

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2020-12-07 16:07:30Z
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Manchester Arena bomber's brother Hashem Abedi admits involvement - BBC News

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The brother of the Manchester Arena bomber has admitted his involvement in planning the attack for the first time.

Hashem Abedi, 23, was jailed for murdering the 22 people who were killed in the bombing at an Ariana Grande concert in May 2017.

During his trial, Hashem denied helping his brother Salman, 22, plan the attack that also left hundreds more injured.

But a public inquiry into the bombing heard Hashem Abedi had made the admission in prison in October.

The inquiry heard how during an interview with inquiry lawyers, he admitted he had "played a full part and a knowing part in the planning and preparation for the arena attack", in which his brother also died.

The 23-year-old's admission was confirmed to the inquiry by Det Ch Supt Simon Barraclough, from Greater Manchester Police, who was the senior investigating officer on the case.

• What is the Manchester Arena inquiry?

Paul Greaney QC, counsel to the inquiry, said to him: "You are aware, on 22 October this year, in prison serving his sentence, Hashem Abedi was interviewed by members of the inquiry legal team?"

Mr Barraclough told the inquiry he knew of the admission and agreed it was a "fair summary" to say Abedi admitted he had played "a full part and a knowing part".

GMP

The detective added that there was "no doubt in my mind" that the prosecution of Abedi was "entirely well founded".

Mr Greaney said: "So the point you are making is that it didn't need him to tell you that you had got it right?"

Mr Barraclough responded: "I think we had got there with the trial."

No further details of the prison interview were provided.

The court heard how the brothers spent months ordering, stockpiling and transporting the materials required for the attack.

They joined their parents in Libya the month before the blast, but Salman Abedi returned to the UK on 18 May.

He bought the final components needed for the bomb before carrying out the attack as fans left the arena on the evening of 22 May 2017.

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Abedi was arrested shortly afterwards and extradited to Britain to face trial.

He did not give evidence during his trial, providing only a statement in which he denied 22 counts of murder, attempted murder and plotting to cause an explosion likely to endanger life.

Abedi originally claimed he did not hold extremist views and had been "shocked" by what his brother had done.

"Had I any idea of it I would have reported it to my mother initially and then to other family members to prevent it from happening," he said in his statement.

But Abedi, formerly of Fallowfield, Manchester, was convicted by a jury at the Old Bailey and jailed for life in August with a minimum term of 55 years.

The Manchester Arena inquiry, which is being chaired by Sir John Saunders, started in September and is expected to last until the spring.

It aims to explore the circumstances leading up to and surrounding the attack and whether it could have been prevented.

The inquiry is being held at Manchester Magistrates' Court, less than a mile away from where the bombing happened.

Why not follow BBC North West on Facebook, Twitter and Instagram? You can also send story ideas to northwest.newsonline@bbc.co.uk

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2020-12-07 13:22:00Z
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Michel Barnier tells EU officials he ‘cannot guarantee’ Brexit trade deal - Financial Times

Michel Barnier has warned he “cannot guarantee” there will be a Brexit trade accord as Brussels saw Wednesday as its deadline to seal an agreement and sterling fell on no-deal fears.

The EU’s chief negotiator told the bloc’s national ambassadors and MEPs that important sticking points remained ahead of UK prime minister Boris Johnson’s stocktaking call with European Commission president Ursula von der Leyen at 4pm on Monday.

In closed-door meetings on Monday morning, Mr Barnier said that about 10 hours of talks with his UK counterpart David Frost and his team on Sunday had failed to yield breakthroughs on the main outstanding issues of fishing rights in UK waters and fair competition rules for business. 

He dismissed claims that a deal on fisheries was at hand, despite negotiators working until midnight, and insisted that talks remained difficult. He told MEPs that the talks were in their final days, with Wednesday the effective deadline, according to one participant at the meeting.

“The outcome is still uncertain, it can still go both ways,” said one diplomat following Mr Barnier’s briefings. “The EU is ready to go the extra mile to agree on a fair, sustainable and balanced deal . . . It is for the UK to choose between such a positive outcome or a no-deal outcome.”

Sterling lost more than 1 per cent against both the euro and dollar on Monday, on track for its worst one-day performance since September, amid news that the talks remained on a “knife-edge”.

Negotiations resumed on Monday, with time critically short to get a deal in time for the end of Britain’s post-Brexit transition period on December 31. EU leaders meet in Brussels for a planned summit on Thursday.

In parallel with the negotiations, UK Cabinet Office minister Michael Gove arrived in Brussels to discuss the implementation of last year’s divorce treaty with the EU, including its arrangements for avoiding a hard border on the island of Ireland. 

Increasing the strain on this week’s talks is Mr Johnson’s decision to press ahead with two contentious pieces of legislation that violate the terms of the EU withdrawal agreement. British MPs are expected on Monday to reinstate treaty-breaking clauses in the government’s internal market bill, while on Wednesday the House of Commons will hold its second reading of the taxation bill that also violates the withdrawal deal.

The UK government argues the new laws are necessary to safeguard intra-UK trade in case future-relationship negotiations fail with Brussels. But EU chiefs, such as European Council president Charles Michel, have warned that ratification of any future-relationship agreement will be impossible unless the UK scraps the controversial clauses.

Mr Barnier suggested to MEPs that he believed the offending provisions would be dropped if there were a trade deal.

Claims that a deal on fisheries was at hand were dismissed by Mr Barnier © Balint Porneczi/Bloomberg

On the question of fisheries the UK is resisting EU demands for countries such as France and Belgium to retain their historic fishing rights in the area six to 12 nautical miles off the British coast. The two sides are also still negotiating over the length of a multi-year transition period during which access for EU fishing boats to UK waters would be safeguarded.

EU diplomats said that a new complication had arisen because of British demands relating to the ownership of UK-registered fishing vessels.

Mr Barnier told MEPs that the UK was still resisting Brussels’ demands that European companies be able to challenge the British government before UK courts if London broke its commitments to a “level playing field” for EU and UK companies. 

The EU is continuing to ask for clear guarantees from Britain that the treaty’s restrictions on the use of state aid can be enforced, including by making sure illegal subsidies are reimbursed. Mr Barnier said this was a problem for sectors such as energy and aviation.

Brussels also wants the right to take unilateral action to restrict UK access to the EU market in response to level playing field violations. 

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2020-12-07 12:36:06Z
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