EU tells May to find ways to break the Brexit impasse
October 17, 2018
Ahead of a Brexit summit on Wednesday, the EU has urged the UK to make "concrete proposals" to break a stalemate in negotiations. German Chancellor Angela Merkel compared any solution to "squaring a circle."
Image: Reuters/H. McKay
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With time running out to reach a Brexit deal, European Council President Donald Tusk (right) has called on British Prime Minister Theresa May to forward new ideas to solve the Northern Irish border that has deadlocked negotiations.
"Tomorrow I am going to ask Prime Minister May if she has concrete proposals on how to break the impasse," Tusk said late on Tuesday. "Only such proposals can determine if a breakthrough is possible."
May is set to discuss the talks with other EU heads of state in Brussels for a major Brexit summit on Wednesday.
Tusk warned that chances of the UK crashing out of the EU without a deal were greater than ever, and warned there were "no grounds for optimism" ahead of the Wednesday summit.
"We need something really creative to protect our values, to protect our single market," Tusk added, while pledging to also respect British sovereignty. "For this we need a new method of thinking."
The two sides appeared to be close to reaching a deal on Sunday, but talks stalled over disagreements over how to avoid a hard border between Northern Ireland and the Republic of Ireland after Brexit.
Irish headaches
If the UK leaves with no deal by March 29, it could lead to border checks between the Republic of Ireland, an EU member, and Northern Ireland, which is part of the UK. Both the EU and the UK have vowed to avoid that outcome.
Brexit negotiations: What are the key issues?
Brexit talks began in June and both sides have been frustrated at the lack of progress. DW has taken a look at key issues being debated in Brussels as the clock ticks toward Britain's scheduled departure in March 2019.
Image: picture-alliance/dpa/o. Hoslet
Two phases
EU leaders agreed to negotiating guidelines during a summit in April 2017 that divided the divorce talks into two phases. Phase I, in which both sides aimed to settle the basic terms of Britain's departure, started in July and ended with an agreement on "sufficient progress" in December. Officials are now holding Phase II negotiations on the post-Brexit relationship between Britain and the EU.
Image: Reuters/File Photo/Y. Herman
The "Brexit Bill"
London agreed to a formula for calculating what it owes in its "divorce bill" to the EU in early December after months of haggling by British officials. The current EU budget expires in 2022 and EU officials have said the divorce bill will cover financial obligations Britain had committed to before triggering article 50. The final bill will reportedly total around £50 billion (€67 billion).
Image: picture-alliance/empics/D. Martinez
Citizens' rights
Both sides agreed in early December that the 3 million EU citizens currently in Britain and the 1.1 million British citizens in the EU keep their residency rights after Brexit. British courts will have immediate jurisdiction over EU citizens living in Britain. But the EU's highest court, the ECJ, can hear cases until 2027 if British judges refer unclear cases to them.
Image: picture-alliance/dpa/B. Smith
The Irish border
Britain and the EU also agreed in December that no border checks between the Republic of Ireland and Northern Ireland would return post-Brexit. How feasible the commitment will be is unclear, as Britain's commitment to leaving the EU Single Market and Customs Union makes it difficult to avoid customs checks at the Irish border.
Image: Reuters/C. Kilcoyne
Transition period
Theresa May envisages a two-year transition period after March 2019. Both sides still have to hash out the details of the transition period in Phase II, including the exact end-date, whether new EU laws passed during the period will apply to Britain, and whether Britain can negotiate its own free trade deals. British officials hope to agree on the terms of the transition by March 2018.
Image: Imago
Trade
May has repeatedly said Britain will leave the European Single Market and the EU Customs Union. Leaving both could disrupt British-EU trade, but allow Britain to negotiate its own free trade deals and restrict EU migration — key demands by pro-Brexit politicians. London has said it wants to negotiate a new EU-UK trade deal during Phase II to minimize trade disruption before March 2019.
Image: Picture alliance/empics/A. Matthews
Immigration
Britain has also vowed to restrict EU migration into Britain after Brexit. However, some British lawmakers are wary that a sharp drop in immigration could lead to shortfalls in key sectors, including health, social care and construction. The EU has warned that Single Market access is out of the question if London decides to restrict the ability of its citizens to live and work in Britain.
Image: picture alliance/PA Wire /S. Parsons
Security
Recent terror attacks across Europe including a string in Britain underline both sides' support for continued security cooperation after March 2019. But access to EU institutions such as Europol and programs such as the European Arrest Warrant require compliance with EU laws. Whether Britain will still be compliant after it leaves is unclear.
Image: picture-alliance/dpa/o. Hoslet
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The EU has suggested including a "backstop" clause into the Brexit deal that would keep Northern Ireland within the EU's customs union and aligned with EU regulations.
Although this would keep the Irish border open, the UK has rejected the proposal out of fear that it could create a customs border between Northern Ireland and the rest of the UK. It has instead suggested that the whole of the UK should stay in a temporary customs arrangement with the EU until both sides have negotiated a post-Brexit free trade deal.
The EU has nevertheless said it would not agree to time-limited arrangements due to concerns that an automatic expiration of the customs agreement could trigger a hard border in the future.
Bracing for impact
On Tuesday, The Financial Times reported that the EU's chief negotiator Michel Barnier was open to extending the UK's post-Brexit transitional period by one year in exchange for the UK making concessions over Northern Ireland.
But May has faced strong pressure from hardline Brexiteers in her Conservative party against making any compromises to the EU. The Northern Irish Democratic Unionist Party (DUP), the conservative and euroskeptic party on whose support she relies to maintain a parliamentary majority, has also opposed EU proposals.
German Chancellor Angela Merkel signaled the difficulty both sides face in achieving a final deal on Tuesday, comparing attempts to solve the border problem to "squaring a circle."
At Wednesday's summit, EU heads of state are also set to discuss preparations for a no-deal Brexit.
"We cannot close our eyes to the fact that we are now in a situation where we can't rule out anything," said Michael Roth, Germany's minister for European affairs.
