Friday, 24 November 2017

MAY AND TUSK MEET TODAY IN BRUSSELS

Yesterday the FT carried a report that the UK and EU were looking to finalise a divorce deal in three weeks. This was behind a paywall so I can't see the article itself but it seemed a bit optimistic. Now Reuters have a report more or less on the same lines (HERE). Although there has been only one or two days of negotiations since the last round, the article claims negotiations have been continuing behind the scenes. There does seem to be hope that a deal is in sight.

Theresa May is meeting with Donald Tusk today in Brussels. Last Friday he professed that he was more optimistic after a meeting with the PM in Downing Street. Let's see what the day brings.

Last night The Telegraph were reporting (HERE) that Mrs May "hasn't ruled out" giving details of what we think our financial commitments are but apparently we want a written guarantee that if we do increase the amount we're prepared to pay, the EU will agree to move on to trade talks. This is something the EU have point blank refused so I'm pretty certain this won't break the deadlock.

Quite apart from the Irish border issue, for which there seems no obvious solution, the EU will not link the settlement of outstanding financial issues with future trade talks. They are not related except insofar as we won't get to talk about the future partnership unless we settle our account. This has always been clear but we have constantly tried to circumvent it.

It's not clear if or how the logjam is to be broken. I assume we have capitulated on money since the unnamed EU source is saying they will be able to offer some presentational flexibility, as far as money is concerned. Effectively, they are discussing how the wool might be pulled over Brexiteer's eyes. They are a notoriously suspicious bunch so it will be interesting how they react to more money being offered. The fact that Gove and Johnson are behind it may help but I assume they are also responsible for wanting the "written guarantee" on trade talks which may well scupper things anyway.

We always knew the citizens rights issue was close but how the Irish border problem can be resolved is not at all clear. The sides seemed a long way apart last week with no breakthrough in sight. 

If some sort of deal is cobbled together you can be sure that both sides will spin it as a victory for their position.