UK won't pay Brexit bill if no trade deal agree

The EU will refuse to sign any trade deal with the UK unless Theresa May guarantees that she will not use Brexit to rip up workers’ rights, its chief negotiator has warned.

Brussels has toughened the tests for a deal, as the exit talks broke up in acrimony after four days with no breakthrough on the key disputes of citizens’ rights and the divorce bill.

Michel Barnier, the chief negotiator, said Britain must give assurances it will not seek “unfair competition” after Brexit by watering down environmental and social protections.
He also laid bare his frustration over the Government’s failure to agree it must meet its financial obligations, warning of an “explosion” across Europe if Britain refuses to pay up.

Mr Barnier underlined the urgent need for Britain to change its approach, saying: “If we do not find that trust, and if we cannot find an agreement on settling the accounts, there will be no trust later.”

The comments were revealed after the chief negotiator told a Brussels press conference there was still a “fundamental divergence” between the EU and the UK on both citizens and money.

In a further sign of worsening relations, the EU has threatened that British people living in the EU face losing their automatic right to move to another member state. That stance would not change unless Britain agreed to allow EU nationals living in this country to move to another EU country and then return to the UK, Brussels sources said.

The EU is also seeking to block the Government from carrying out criminal record checks on EU nationals who apply to remain in Britain after Brexit.
This development came as a House of Lords committee warns that the information the Government relies on to set immigration policy is “woefully inadequate”. In a report released on Thursday, Lords warn that immigration policy will be made “in the dark” if ministers do not have reliable statistics.

Mr Barnier’s comments coincided with second round of Article 50 talks breaking up after yet again failing to make a significant breakthrough, despite high hopes on the British side.

The commission’s chief negotiator warned there was a “fundamental divergence” between the UK and EU as Brexit Secretary David Davis again returned from Brussels empty handed.

Brussels sources say the commission is frustrated that the UK is refusing to engage at all on the issue of Britain settling its Brexit divorce bill – but despite having little to show for the talks, British ministers are striking a far more positive tone.

Mr Davis told journalists at the same press conference that he believed the two sides had come to better understand one another’s positions, while trade secretary Liam Fox also stepped up the hubris, telling BBC News that “the free trade agreement that we will have to do with the European Union should be one of the easiest in human history”.

Theresa May has suggested the UK stands ready to launch a deregulation drive after Brexit if there is no deal in Article 50 negotiations, a position also backed by her Chancellor Philip Hammond.

Source:AFP