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| Davis and Barnier at odds over Brexit bill and transition period | Davis and Barnier at odds over Brexit bill and transition period |
| (35 minutes later) | |
| The Brexit secretary, David Davis, and the EU’s chief negotiator, Michel Barnier, have clashed over the UK’s exit bill and Britain’s request for a transition period after Theresa May’s Florence speech failed to unlock the negotiations stalemate. | The Brexit secretary, David Davis, and the EU’s chief negotiator, Michel Barnier, have clashed over the UK’s exit bill and Britain’s request for a transition period after Theresa May’s Florence speech failed to unlock the negotiations stalemate. |
| On the first day of the fourth round of talks on Monday, Barnier told reporters in Brussels that the prime minister’s €20bn (£17.6bn) offer during her Italian address did not mean the UK would be given a transition period or that negotiations could move on to the detail of a future trading relationship. | On the first day of the fourth round of talks on Monday, Barnier told reporters in Brussels that the prime minister’s €20bn (£17.6bn) offer during her Italian address did not mean the UK would be given a transition period or that negotiations could move on to the detail of a future trading relationship. |
| “It remains more necessary than ever to create the trust that we need to set up and build upon our future relationship,” he said, adding that it was up to Britain to provide “clarity” with time running out before it leaves. | “It remains more necessary than ever to create the trust that we need to set up and build upon our future relationship,” he said, adding that it was up to Britain to provide “clarity” with time running out before it leaves. |
| During a joint appearance, Davis had insisted there “could be no excuses for standing in the way” of progress this week and it was “obvious” that discussions on the financial settlement needed to be had in the context of talks over the future relationship. | During a joint appearance, Davis had insisted there “could be no excuses for standing in the way” of progress this week and it was “obvious” that discussions on the financial settlement needed to be had in the context of talks over the future relationship. |
| But Barnier, coming out of a meeting with EU ministers from the 27 other member states, suggested little had changed in the state of the discussions. Brussels continues to insist that it needs to see “sufficient progress” on citizens’ rights, the financial settlement and the Irish border before it will discuss future trade. | But Barnier, coming out of a meeting with EU ministers from the 27 other member states, suggested little had changed in the state of the discussions. Brussels continues to insist that it needs to see “sufficient progress” on citizens’ rights, the financial settlement and the Irish border before it will discuss future trade. |
| “A discussion that is going to take place because the UK is asking for it on this transitional period does not mean we will no longer need to achieve sufficient progress,” Barnier said. | “A discussion that is going to take place because the UK is asking for it on this transitional period does not mean we will no longer need to achieve sufficient progress,” Barnier said. |
| “We are not going to mix up discussions on debts and discussion on the past commitments. We are not going to mix up those subjects, which are part of an orderly withdrawal, on a discussion of our future relationship.” | “We are not going to mix up discussions on debts and discussion on the past commitments. We are not going to mix up those subjects, which are part of an orderly withdrawal, on a discussion of our future relationship.” |
| The Brexit secretary said he expected this week’s round of talks to build on May’s speech, in which she made a series of pledges, including the transposing of an agreement on citizens’ rights directly into UK law and a further two years of payments into the EU budget, even after Britain has left. | The Brexit secretary said he expected this week’s round of talks to build on May’s speech, in which she made a series of pledges, including the transposing of an agreement on citizens’ rights directly into UK law and a further two years of payments into the EU budget, even after Britain has left. |
| “The UK is absolutely committed to working through the detail,” Davis said. “We are laying out concrete proposals and there are no excuses for standing in the way of progress ... It will take pragmatism from both sides to make headway and I hope we can achieve that this week.” | “The UK is absolutely committed to working through the detail,” Davis said. “We are laying out concrete proposals and there are no excuses for standing in the way of progress ... It will take pragmatism from both sides to make headway and I hope we can achieve that this week.” |
| But Barnier offered little succour to the UK’s cause and directly contracted Davis’s claims over the weekend that Britain would no longer be under EU law in 2019, should it seek a transition period. | But Barnier offered little succour to the UK’s cause and directly contracted Davis’s claims over the weekend that Britain would no longer be under EU law in 2019, should it seek a transition period. |
| “The EU has to decide whether to have a transitional period and whether it is in its interest. Any trasition has to respect the regulatory and financial framework of the single market,” he said. | “The EU has to decide whether to have a transitional period and whether it is in its interest. Any trasition has to respect the regulatory and financial framework of the single market,” he said. |
| “As we said, we are talking about prolonging and extending EU legislation for a certain amount of time. That would mean we would have to continue with [such] things as the budget, supervision, judicial control and controls of EU rules and regulations. So that would have to continue to apply.” | “As we said, we are talking about prolonging and extending EU legislation for a certain amount of time. That would mean we would have to continue with [such] things as the budget, supervision, judicial control and controls of EU rules and regulations. So that would have to continue to apply.” |
| The latest round of Brexit talks come amid intensifying debate in Brussels about the EU’s post-Brexit budget. | The latest round of Brexit talks come amid intensifying debate in Brussels about the EU’s post-Brexit budget. |
| Barnier said Davis had not previously mentioned the UK’s desire for a transition period, but the terms of such a phase, including the jurisdiction of the European court of justice, should be well known in London. | |
| “If the UK is asking for a transition period, it is the UK asking for it, we are not asking for it ... Perhaps I can just remind you that these rules that go hand in hand with the single market are well known to the UK, as they helped us build these rules over the last decades,” he said. | |
| Günther Oettinger, the European commissioner for the budget, said the EU would lose €12bn-€15bn a year when Britain leaves. Speaking at a conference in Brussels, he said: “We need to save 50% and find 50% of new money to fill the gaps because of Brexit.” | Günther Oettinger, the European commissioner for the budget, said the EU would lose €12bn-€15bn a year when Britain leaves. Speaking at a conference in Brussels, he said: “We need to save 50% and find 50% of new money to fill the gaps because of Brexit.” |
| Beyond the UK’s departure, he said the EU would need another injection of cash to pay for new policies, such as greater controls on its external frontiers and EU defence projects. | Beyond the UK’s departure, he said the EU would need another injection of cash to pay for new policies, such as greater controls on its external frontiers and EU defence projects. |
| The European commission sees Brexit as a way to simplify the EU budget, which has spiralled in complexity since Margaret Thatcher secured the British rebate in 1984. Other net payers to the EU budget, including Germany, Austria, the Netherlands, Denmark and Sweden, get rebates that are tied to the British one. “When the British leave, if the British leave, the mother of all rebates will go with them,” Oettinger said. “All rebates should go.” | The European commission sees Brexit as a way to simplify the EU budget, which has spiralled in complexity since Margaret Thatcher secured the British rebate in 1984. Other net payers to the EU budget, including Germany, Austria, the Netherlands, Denmark and Sweden, get rebates that are tied to the British one. “When the British leave, if the British leave, the mother of all rebates will go with them,” Oettinger said. “All rebates should go.” |
| His remarks underline the fact that if Britain decided to remain in the EU or apply to rejoin, it would be almost impossible to recover existing benefits, such as the rebate, which gives the UK a £4.4bn annual discount on EU membership. | His remarks underline the fact that if Britain decided to remain in the EU or apply to rejoin, it would be almost impossible to recover existing benefits, such as the rebate, which gives the UK a £4.4bn annual discount on EU membership. |