The EU’s chief Brexit negotiator, Michel Barnier, declared Thursday that talks had reached “deadlock” over the U.K.’s financial obligations and that he would not recommend the European Council authorize a shift to the second phase of talks during a summit in Brussels next week.
Barnier, citing U.K. Prime Minister Theresa May’s speech in Florence, in which she promised Britain would meet its obligations, said the EU now needed to hear the U.K. spell out its specific financial commitments.
“This week, however, the U.K told us again that they were not prepared to specify these commitments,” Barnier said. “Therefore, there hasn’t been any negotiations … We made do with only technical discussions. On this basis. I am not ready to propose to the European Council to open negotiations on the future relationship.”
Barnier added: “On this question, we have reached a state of deadlock, which is very disturbing.”
The U.K.’s lead negotiator, David Davis, confirmed that there had only been technical discussions around the money question in the fifth round of negotiations.
“This is not a process for agreeing specific commitments, we have made clear this can only come later,” Davis said.
Still, one British official who didn’t want to be named said Barnier’s remarks were being interpreted in an overly negative light and took issue with the European Commission’s translation of the French “impasse” as “deadlock.” Impasse can also refer to a “dead end.”
Nothing was lost in translation: When it comes to the money, negotiators have hit a brick wall.
As in previous rounds, Davis was keen to emphasize the positives. “While there is still work to be done, much work to be done, we have come a long way,” he said. “And it is important to recognize the significant progress we have made since June.”
He also pointed out that he is still waiting for a response from the EU on an offer on citizens’ rights that he made in the previous round of talks two weeks ago, that would give EU citizens living in the U.K. an automatic “right to return” in exchange for “onward movement” for U.K. citizens in the EU 27. That would mean a British citizen living in France at the time of Brexit would be able to move to, say, Italy or Poland in the future.
“We are taking a pragmatic approach, as demonstrated by our offer of a guaranteed right of return for settled citizens in the U.K. in return for onward movement rights for U.K. citizens currently living in the EU,” Davis said. “We look forward to hearing the European Union’s response to this.”
The U.K.’s pressure on that issue suggested that London saw a potential weak spot, in which Brussels could be pressed to compromise on the “freedom of movement” — one of the four pillars that EU leaders have said must be upheld in order to get access to the single market.
The EU has repeatedly said that London cannot “cherry pick” benefits such as freedom of movement, and that a loss of membership privileges was an unavoidable consequence of leaving.
Trust = progress
Davis on Thursday again called on EU leaders to give Barnier more flexibility, reflecting London’s frustration over Brussels’ staunch refusal to discuss a transition period and future trade deal.
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EU leaders are due to decide next week whether “sufficient progress” has been achieved on the core divorce issues in order to allow the negotiations to proceed to phase 2 — talks about the U.K.’s future relationship with the bloc. But the leaders, and Barnier, have already made clear the verdict.
Barnier said that sufficient progress would only come when there was greater trust between the two sides and this hinged on resolving the question of financial obligations.
“That confidence will flow from clarity and the honoring of all commitments that we entered into together as the 28,” he said.
At the same time, he held out hope of better results by the December European Council summit.
“I remain convinced … that with political will, decisive progress is within our reach in the coming two months,” he said — adding that he and Davis would set “several negotiation meetings from now on to the end of the year.”
While there was minimal forward motion toward resolving the overarching divorce terms, the negotiators did report some concrete advances, particularly on the question of citizens’ rights.
Barnier said the EU would “study” a plan put forward by the U.K. for a new registration process for EU citizens residing in Britain, and Davis boasted that it would be “entirely new,” “streamlined” and “low cost.” The U.K. has faced criticism over its costly and bureaucratic process for requesting residency, which includes an 80-page application form.
The absence of any breakthrough gave reporters in the press room at the Commission headquarters ample basis to pummel the negotiators, and several did so with relish. The Commission’s chief spokesman, Margaritis Schinas, seemed to take pleasure in asking British reporters to ask questions.
“You have consistently talked up progress throughout these past five weeks, you don’t appear to have got much progress at all,” Mark Stone, of Sky News, told Davis. “It looks very much as if Britain is losing this one.”
Chris Morris of the BBC was no kinder, “It’s obvious the hope and expectation was that progress would have moved a lot further by now, especially given the two-year Article 50 timetable,” he said. “You both pride yourselves on being good negotiators. What are you doing that’s so badly wrong?”
Tom McTague contributed reporting.