Barnier: Brexit deal ahead if Britain stops backtracking
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Britain can still achieve a post-Brexit trade deal with the European Union as long as the UK stops “backtracking” on its commitments, the EU’s chief negotiator said today.
In a virtual think-tank event this afternoon, Michel Barnier called on Prime Minister Boris Johnson to give “clear signals” that the UK is ready to work towards a trade deal with the EU.
“Our problem is not related to timing, but to substance, in particular that the UK keeps backtracking on its commitments in the political declaration,” Barnier said, referring to the 31-page document published last year that set out the direction of future trade discussions.
Barnier added that he was neither optimistic nor pessimistic about achieving a deal, describing himself as “determined” to break the stalemate. “I believe that the deal is still possible,” he said.
The EU chief negotiator cautioned that a failure to secure a post-Brexit trade deal with the European Union would damage the UK’s economy irreparably.
“It’s in the UK’s particular interest to avoid a no-deal,” he said, adding that the EU was willing to “find a margin of flexibility” on the sticking point of Britain’s fishing waters.
Talks between the EU and UK are set to intensify in the coming weeks, as the UK inches closer to its 1 July deadline for extending the transition period, which is due to expire on 31 December.
The UK formally left the EU on 31 January, and the government has repeatedly ruled out any extension to the transition, meaning any deal must be formed by the end of the year.
If a UK-EU trade deal is struck by the end of the year, the UK could begin the new trading relationship as soon as the transition period ends.
It comes as chancellor Rishi Sunak yesterday said the UK will “tailor” capital rules for insurers inherited from the EU, as he set out how Britain will regulate the City after the Brexit deadline.
Sunak yesterday said the UK would make reforms to maintain the soundness of capital markets and manage future risks.
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