Brexit hangs in the balance as EU doubts a deal this week

A deal to smooth Britain's departure from the European Union hung in the balance after diplomats indicated the bloc wanted more concessions from Prime Minister Boris Johnson. Picture: AP

A deal to smooth Britain's departure from the European Union hung in the balance after diplomats indicated the bloc wanted more concessions from Prime Minister Boris Johnson. Picture: AP

Published Oct 14, 2019

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London - A deal to smooth

Britain's departure from the European Union hung in the balance

on Monday after diplomats indicated the bloc wanted more

concessions from Prime Minister Boris Johnson and said a full

agreement was unlikely this week.

As the Brexit maelstrom spins, Johnson and EU leaders face a

tumultuous week of reckoning that could decide whether the

divorce is orderly, acrimonious or delayed yet again.

Johnson says he wants to strike an exit deal at an EU summit

on Thursday and Friday to allow an orderly departure on October 31.

If an agreement is not possible, he says he will lead the United

Kingdom out of the club it joined in 1973 without a deal - even

though parliament has passed a law saying he cannot do so.

But current EU president Finland said more time was needed

and that negotiations could continue even after the EU summit.

"I think there is no time in a practical or legal way to

find an agreement before the EU Council meeting," Prime Minister

Antti Rinne said after talks with the next chair of EU summits,

Charles Michel. "We need more time and we need to have

negotiations after the (European) Council meeting."

Some EU politicians such as Irish Foreign Minister Simon

Coveney said a deal was possible with more work. But EU

diplomats were pessimistic about the chances of Johnson's hybrid

customs proposal for the Irish border riddle.

"We are not very optimistic," a senior EU diplomat told

Reuters.

After more than three years of Brexit crisis that has

claimed the scalps of two British prime ministers, Johnson will

have to ratify any last-minute deal in parliament, which will

hold its first Saturday sitting since the 1982 Falklands War.

As EU ministers met in Luxembourg ahead of the leaders'

summit, Johnson's planned legislative agenda was read out by

Queen Elizabeth at the state opening of parliament.

If he is unable to clinch a deal, an acrimonious divorce

could follow that would divide the West, roil financial markets

and test the cohesion of the United Kingdom.

"Let's not wait - we can't wait: let's get Brexit done,"

Johnson told parliament. "If there could be one thing more

divisive, more toxic than the first referendum, it be would be a

second referendum."

The pound fell more than 1% to a session low of $1.2517

. Against the euro, the British currency weakened by a

similar margin to 88.11 pence.

The main sticking point remains the border between EU member

Ireland and the British province of Northern Ireland: how to

prevent it becoming a backdoor into the EU after Brexit without

erecting controls that could undermine the 1998 peace agreement

that largely ended three decades of sectarian violence.

BREXIT HANGS IN BALANCE

To get a deal done, Johnson must master the complexities of

the Irish border before getting the approval of Europe's biggest

powers and then sell any deal to the parliament in which he has

no majority and which he suspended unlawfully last month.

"Johnson doesn't have a majority for anything in

parliament," one EU official told Reuters.

The details of Johnson's proposals have not been published

but are essentially a compromise in which Northern Ireland is

formally in the United Kingdom's customs union but also

informally in the EU's customs union.

But the EU is worried it would be impossible to ensure goods

entering Northern Ireland do not end up in the bloc and is

concerned about the complexity of a system for charging tariffs

on goods moved between Britain and Northern Ireland.

"Such a hybrid customs territory like the British are

proposing for Northern Ireland does not work anywhere in the

world, it seems," an EU diplomat said.

"With this kind of system, with two sets of rules for the

same goods crossing the same border, there is more possibility

for fraud and it's extremely complicated to distinguish between

goods heading for Northern Ireland, or further to Ireland and

the single market."

In a sign that optimism which followed Johnson's meeting

with Irish Prime Minister Leo Varadkar last week may have been

premature, EU diplomats now say the best chance of a deal would

be to keep Northern Ireland in the EU's customs union.

That would be a step too far for Johnson's Northern Irish

allies, the Democratic Unionist Party, and many Brexit

supporters in his party.

If he fails to strike a deal with the EU, a law passed by

parliament obliges him to seek a delay - the scenario EU

diplomats think is most likely.

"It's up to the Brits to decide if they will ask for an

extension," European Commission head Jean-Claude Juncker said in

an interview with Austrian media outlet Kurier.

Extension options range from as short as an extra month to

half a year or longer. The other EU states would need to agree

unanimously to grant it. 

Reuters

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