BRUSSELS • The European Union's chief Brexit negotiator Michel Barnier warned yesterday that he cannot guarantee he will strike a trade deal with Britain, and the next few days will be crucial.
"We are quickly approaching a make-or-break moment in the Brexit talks," Mr Barnier told a video meeting of European envoys, a diplomat said.
"Intensive negotiations are continuing in London but, as of this morning, it is still unclear whether negotiators can bridge the gaps on issues like level playing field, governance and fisheries," he said at the meeting for the 27 member states' envoys in Brussels.
EU member states had urged him not to be rushed into agreeing to an unsatisfactory trade deal with Britain just because the Dec 31 deadline is looming. A senior EU diplomat said that several member states would rather see negotiations, which have been stuck for months, continue past the end of Britain's transition phase on Dec 31 even if that means there is a brief "no deal" period.
"There is a worry that, because of this pressure of time, there is a temptation to rush," the diplomat said after the meeting. "We told him, 'Don't do that'."
The EU and Britain are negotiating a trade deal that would regulate their business relationship from next year, after the end of Britain's transition period following its exit from the EU. But negotiators cannot overcome differences on three longstanding issues: the access to British fishing waters, a level playing field for business, and how the overall agreement is enforced.
The next few days are crucial, with the two sides hoping that an agreement can be reached tomorrow or over the weekend, officials said.
People familiar with the EU position said negotiators are trying to avoid talks running into next week to prevent them from having an impact on preparations for a summit of EU leaders that starts next Thursday. Not only are European governments occupied with a row over the EU budget, the bloc's negotiating team is also concerned that presenting leaders with anything other than a signed-and-sealed deal would leave an agreement vulnerable to being unpicked at the last moment.
The EU has outsourced its negotiations to Mr Barnier and the European Commission, and some countries - especially France and the Netherlands - are uneasy about what sort of compromises are being made in their name, said an EU official.
If the two sides fail to reach an accord by Dec 31, businesses and consumers will be left facing the cost and disruption of tariffs and quotas, while relations between Britain and the EU risk being poisoned for a generation.
AGENCE FRANCE-PRESSE, REUTERS, BLOOMBERG
