EU's Juncker upbeat on Brexit accord, no-deal not an option

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The European Union will reach a deal with Britain on Brexit in November if it does not do so this month, European Commission President Jean-Claude Juncker told Austrian newspapers.

Juncker, whose optimism was echoed in comments on Saturday by European Council President Donald Tusk, said that the potential for a rapprochement had grown in the last few days.

"We are not there yet. But our will to reach an understanding with the British government is unbroken," he was quoted as saying by Der Standard and Kurier and Der Falter.

On Friday, EU Brexit negotiators told ambassadors of the 27 states remaining in the bloc that there was no breakthrough on the Irish issue and much would depend on what their British counterparts bring to Brussels next week.

British Prime Minister Theresa May arrives with her husband Philip May ahead of her speech on the final day of the Conservative Party Conference in Birmingham, October 3, 2018. /VCG Photo

"We have to get away from this no-deal scenario. It wouldn't be good for Britain or for the rest of the (European) Union," Juncker said.

Britain and the EU are trying to push for the divorce deal, as well as an agreement on post-Brexit relations, over the line in time for leaders' summits scheduled for October 17-18 and November 17-18.

"My assumption is that we will reach an accord which will achieve the conditions of the withdrawal treaty," Juncker said, adding that it was not possible to predict whether there will be a conclusion to the Brexit negotiations in October.

"If not, then we will do it in November."

Tusk also said it was possible to agree on a deal with Britain on leaving the European Union by the end of 2018.

"I have hope close to certainty that we will manage to reach an agreement both on exit and on best possible future relations. I hope that it will be possible to avoid major losses on both sides," he said on the sidelines of a conference in Krakow, Poland.

"We will try for it in October and I think there is a chance to have an accord by the end of the year," he added.

Juncker told the Austrian papers that a political declaration on future relations between Britain and its former European partners was needed to accompany the Brexit deal.

"You can't absolutely keep separate the withdrawal treaty and the declaration of the future relationship between the United Kingdom and Europe," he said.

(Cover: European Council President Donald Tusk (L) and European Commission President Jean-Claude Juncker (R) during a news conference in Austria, September 20, 2018 /VCG Photo)

(With inputs from Reuters)