Financial News

Brexit briefing November 24: Chaos And Confusion

Chaos among Tories in London and confusion among negotiators in Brussels are holding up Brexit talks.

Both Britain and the EU appear not to know how to proceed after a stand-off lasting weeks over what to do about how much Britain should pay to leave the EU and the border between Eire and Northern Ireland.

In London, a leaked EU dossier says in-fighting between ministers over how much to pay the bloc as a golden goodbye means ‘sufficient progress’ has not been made to move on to trade talks.

In Brussels, it appears chief Brexit negotiator Michel Barnier promised British Prime Minister Theresa May that a pledge that no EU state would lose out financially due to Brexit would be enough to go on to the next phase of talks.

But he was overruled by France and Germany, whose governments want a settlement figure, not just a promise.

Brexit divisions in Westminster

The EU has pushed their clock is ticking on progress stance and if Britain has not come up with enough cash by the time leaders meet in December, starting trade talks would be delayed until next year.

Britain has said no figure would be promised until a trade deal has been made.

“These negotiations are continuing but what I am clear about is that we must step forward together. This is for both the UK and the European Union to move on to the next stage,” said May.

Recently, the EU has concentrated on Brexit divisions in the Cabinet to try and gain leverage from pitting ministers against each other.

Now, Germany and France have undermined the ability of their chief negotiator to hold to his word during negotiations.

Barnier emasculated by his bosses

From Britain’s point of view, a beneficial trade deal is worth paying the EU for, but without a trade deal, Westminster sees no point in paying any cash.

This is a tough hurdle for the EU to overcome, as Barnier’s position in the talks has been emasculated by his bosses and Britain will say unless we have a deal in writing, we have no deal at all because your negotiators may be overruled at any time.

In Addition, whatever the negotiators for either side agree, the final decision lays with the parliament of each member state and could be thrown out at the last minute anyway.

Brexit talks seem to be a complete mess for everyone involved and perhaps no deal would now be better for both sides.

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