Displaying items by tag: EU

In Brussels a high-stakes disagreement has emerged with a jackpot worth the total value of the EU budget until 2027 plus its €750bn Coronavirus Recovery fund. 24 member states and a majority in the EU Parliament are in opposition to Hungary, Poland, and Slovenia over the division of EU funds between member states being linked to the behaviour and the values of individual governments. The EU wants to pass a law that if a member state pursues policies that the EU feels are in conflict with its core values, it will lose access to the funds. Poland and Hungary emerged as democracies from communist dictatorship and both have gone on to elect right-wing nationalist governments, heavily dependent on EU funds. Political opposition and economic reliance has introduced a strain of toxicity into their Brussels relations.

Negotiations for a post-Brexit trade deal between the UK and EU are expected to continue next week as the deadline draws nearer. The two sides resumed talks in London this week, with a UK government source saying they were in the ‘final stage’. But big gaps still remain, and the UK described the EU’s position on fishing access as ‘wholly unrealistic’. Boris Johnson is prepared to move forward without a deal. If nothing is agreed, the UK will trade with the bloc on World Trade Organisation rules - leading to tariffs on many imports and exports, which could push up costs for businesses and consumers. Both sides say they want to avoid this outcome, but the EU will not do a deal ‘at any price’. Mr Johnson said the UK will prosper either way.

Michael Gove told the Welsh Brexit minister that Britain could ‘no longer be bound by the Common Fisheries Policy’ and won’t back down on its demands. Spain and Gibraltar want a last-minute deal to avoid having a hard border after Brexit. However a Spanish diplomatic source said they have stumbled on ‘a lack of political will’ in London. Ireland’s foreign minister claimed that a trade deal is now ‘likely’ in the next two weeks, while warning ‘major trade disruption would be the ‘new reality’ even if a UK-EU deal is struck. Bloomberg (an international news agency) thinks that the Brexit negotiators have made good progress in London this week, raising hopes they could ‘inch’ towards a deal by early November. People ‘familiar with the discussions’ claim that the two sides have begun work on the text of an agreement covering level playing field issues, and are close to finalising a joint document covering state aid mechanism.

Talks between UK and EU Brexit negotiators entered an ‘intensified phase’ on 22 October after Brussels said both sides would be required to compromise on trade issues. Michel Barnier offered an olive branch to Lord Frost as the deadline for a deal looms. Number 10 acknowledged that ‘significant gaps’ remain between the two sides, and it was ‘entirely possible that negotiations will not succeed’. Meanwhile, according to the Home Office, EU criminals could be barred from entering the UK when freedom of movement ends next year. However questions remain as to how the criminal history of travellers will be checked if the UK loses access to EU crime databases at the end of the Brexit transition period, as no agreements have yet been reached.

The prime minister is hoping for some progress at the current EU Council summit in Brussels before revealing whether he wants the trade deal talks to continue. The two-day summit is the EU’s first Brexit meeting since the start of the coronavirus pandemic. The talks began on 15 October, the day that the PM previously set as his final cut-off point for an agreement. However, on the previous da he indicated he would ‘reflect’ on the outcome of the summit before making a decision. Stark differences still remain between the two sides on fishing, and the EU wants a deal, but not at ‘any price’. France is adamant it should maintain long-term access to British waters as part of any trade deal; ‘Britain's demands for annual negotiations over fishing quotas are unacceptable’. Pray for God to give Downing Street wisdom and strength over politically sensitive issues.

On 18 August, 48 hours of Brexit talks resumed in Brussels. A source close to British negotiators said it would not accept any deal that ‘constrains’ the UK to the EU’s rules and infringes sovereignty. They reiterated that the UK was still seeking a free trade deal with the EU, similar to its agreement with Canada. The source said, ‘We remain committed to working hard to find the outlines of a balanced agreement. Our priority throughout the process has always been the return of our sovereignty.’ Former Brexit secretary David Davis said that fifty civil servants going to Brussels to negotiate was not enough. It ought to be a couple of hundred because there are so many things going on in parallel. We are also negotiating trade with America, Japan, New Zealand and Australia. The Americans and the New Zealanders are complaining we’re not moving fast enough.

Brexit talks have stalled over a series of key issues; neither the UK and EU has shown any willingness to make concessions. The future of British fisheries has remained one bone of contention since the start of the talks, as the EU continues to demand access to UK waters at the end of the transition period. Tim Bale, the deputy-director of the UK in a Changing Europe think tank, suggested Boris Johnson is unlikely to give in to EU demands because of their ‘symbolic’ importance. It’s all about the slogan that won the referendum, ‘Take back control’.

On 22 July transport secretary Grant Shapps said that the United Kingdom wants a Brexit free trade deal with the EU, but is prepared for a no deal. A spokesman for Boris Johnson said later that day that Britain remains committed to agreeing the outlines of a balanced trade agreement with the EU, but significant differences between the two sides remain. Talks on a future relationship, which are now in their fifth round, have all but stalled. Some companies fear that there will be disruption at the end of the year if the two fail to secure a trade deal. Mr Johnson’s spokesman said, ‘We will make sure that we’re prepared for all possible scenarios.’

EU leaders have agreed on a 750 billion euro coronavirus relief package, both in loans and grants. A major accomplishment: for the first time all 27 members agreed to share the financial burden to rescue some of its members. However this is just the first step on a long road to recovery. The fine print is thorny. Any individual member state can delay disbursement of funds to another member by questioning the recipient's spending plans. For example, this would allow a country to put a temporary hold on funds for another if the Hague has a bone to pick about overspending. Not a veto, but it could delay the release of much-needed funds and pit countries against each other. Also money will not be released until 2022. So if Italy and Spain continue borrowing to pay for their domestic rescue plans, they will owe much more a year from now and be in a worse financial position to respond to any second coronavirus wave.

Post-Brexit access to UK waters for EU fishermen is a major hurdle to a trade deal between the UK and Europe. Michel Barnier had a private dinner with UK’s Brexit negotiator, David Frost, at Downing Street on 8th July. It is believed they discussed UK’s fishing rights over a meal of halibut and asparagus. The meeting comes after it emerged Mr Barnier had told a House of Lords select committee in June that the bloc could water down its stance on fishing if the UK also agrees to compromise. The UK insists British fishing boats have priority as it pushes for a new scientific approach based on how many fish are in domestic waters. If both sides dig their heels in on their positions there will be no discussion on fisheries, and therefore no agreement on trade.