London and Brussels blamed each other for the lack of progress in reaching an agreement on their post-Brexit relationship on Friday. Europeans point “a waste of precious time“while the British accuse them of giving up the negotiations”unnecessarily difficult“.
“At this stage, an agreement with the United Kingdom and the European Union seems unlikely. I just don’t understand why we’re wasting precious time“, launched the European negotiator Michel Barnier, at the end of the 7th negotiating session, saying”disappointed and concerned“.
Competition and fishing: the two annoying subjects
At the same time his British counterpart David Frost criticized Europeans for “make unnecessarily difficult“these discussions wanting to impose in London”a continuity“the same rules on state aid, which are part of the conditions of competition, and fishing, two hard points of the discussions, before moving forward on the other subjects of the agreement.
“The negotiations are blocking the EU’s insistence on making us accept their position (on these two points), so it’s freezingé “, commented a British negotiator.
“For the Europeans, it is out of the question to leave the conditions of fair competition and fishing for the end of the negotiations. We cannot continue to advance on other subjects when we have a gaping hole on central subjects“, underlined a European source.
Agreement is always possible
Yet time is running out since the divorce on January 31, 2020 between the United Kingdom and the EU. An agreement must be reached by the end of October at the latest, the time in particular for ratifications by the European and British Parliament, before the end of the transition period at the end of 2020 to have an agreement in place on January 1, 2021.
While acknowledging the impasse in which the discussions find themselves, the two negotiators still deem an agreement possible.
As from the start, the negotiations stumble on the conditions of competition (social, environmental, fiscal and state aid standards), the EU refusing to see a deregulated economy appear at its doorstep, and the fisheries file, essential for several European countries including France while London wants to regain control of its fish-bearing waters.
New appointment in September
To illustrate these deep differences on the conditions of competition, Michel Barnier took the example of road transport, asserting that the British did not want certain rules to apply to their drivers when they circulate on the European continent like the times of driving or rest when these are imposed on Europeans.
“There will be no card access to the single market“European,” he warned.
In the absence of an agreement before December 31, the only rules of the World Trade Organization (WTO), with their high customs duties and their extensive customs controls, would apply to trade relations between the Union and its former partner.
The next round of talks is due to take place in London from September 7th. In the meantime, MM. Barnier and Frost will be “in close contact”, assured the British negotiator.
Failure to find a compromise would have potentially disastrous consequences for economies already hit hard by the Covid-19 pandemic.
The UK economy suffered a record 20.4% drop in its economy in the second quarter and, in the first six months of the year, its worst recession on record. As for the euro zone (19 EU countries), it also saw its GDP plummet sharply between April and June (- 12.1%).
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