EU negotiator: Brexit transition period 'not a given'

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Europe

A post-Brexit transition is "not a given," the EU's chief Brexit negotiator Michel Barnier warned Britain on Friday, saying London had "substantial" objections to the European Union's offer and that parts of it were not up for negotiation.

The EU negotiator's stark message, which weakened sterling, came after EU diplomats and officials warned in recent days that sticking points in the talks were threatening the whole Brexit schedule that the two sides had agreed on to provide certainty to business and citizens.

Speaking to journalists in Brussels after the latest round of Brexit talks, Barnier listed Britain's issues with the transition period that the EU has offered until the end of 2020.

It envisages that London will remain bound by all EU laws and pay into the bloc's budget, but have no say in decisions.

EU's chief Brexit negotiator Michel Barnier arrives to address a news conference at the EU Commission headquarters in Brussels, Belgium, February 9, 2018. /VCG Photo

London has said it wants to reach a deal on transition in March.

"If these differences persist, a transition is not a given," Barnier said. "If these disagreements were to persist, there will undoubtedly be a problem."

Britain's Brexit negotiator David Davis said he was "surprised" at Barnier's comments.

Barnier said Britain rejected giving lifetime residency rights to EU citizens who arrive after Brexit but before 2021, wanted mechanisms to avoid any new EU laws it dislikes, and opposed a clause to unilaterally suspend Britain's access to the single market in case of disputes.

"Frankly, I am surprised by these disagreements," he said. "In demanding the benefits of the single market, the customs union ... the United Kingdom should logically accept all the rules and obligations until the end of the transition."

Britain's Secretary of State for Exiting the EU David Davis (R) and the EU's chief Brexit negotiator Michel Barnier speak inside 10 Downing Street, London, February 5, 2018. /VCG Photo

Barnier stressed the EU was waiting for London to explain what sort of future relationship it wanted with the bloc and how to avoid border controls between Northern Ireland and the Irish Republic if it leaves the bloc's customs union, as Prime Minister Theresa May has said it will.

May's cabinet, however, is deeply split on how close to the EU it sees Britain eventually landing.

"The sooner the UK makes its choices, the better," Barnier said. "A UK decision to leave the single market and leave the customs union would make border checks unavoidable."

He added: "We focus on solutions to avoid a hard border ... any solution must be precise, clear and unambiguous."

British Prime Minister Theresa May speaks as she hosts a roundtable with Japanese investors in the UK at 10 Downing Street in central London over the risks of Brexit, February 8, 2018. /VCG Photo

Barnier said Britain had to sort out all issues related to its divorce from the bloc – including ties with the EU nuclear agency Euratom and personal data protection – to win a transition period after it leaves the EU in March 2019.

"There is no transition possible without a withdrawal agreement," he said.

London particularly dislikes the EU retaining the right to to cut Britain off from its market. Davis on Friday also called its approach "discourteous."

"You will not find in our attitude ... the least trace of discourtesy or willingness to punish," Barnier responded.

He said the next round of Brexit negotiations, which the EU has penciled in to start on February 26, would look again at the transition, as well as whether Britain would be covered by EU deals with third countries during that time.

Source(s): Reuters