Brussels: European Union leader Jean-Claude Juncker and Prime Minister Theresa May agreed on Thursday to hold further talks on Britain’s withdrawal from the bloc, after what they described as a “robust” meeting.
EU negotiator Michel Barnier will meet Britain’s Brexit Minister Stephen Barclay on Monday in Strasbourg and May and Juncker themselves will get back together before the end of February, a spokesman said.
In a joint statement issued after May met Juncker at EU headquarters in Brussels, the pair confirmed that the European Commission president had warned the British premier that the Brexit withdrawal deal cannot be renegotiated.
But he “expressed his openness to add wording” to a parallel political declaration laying out ambitions for future EU-UK ties if London wants to seek a “more ambitious” closer relationship after Brexit.
May, however, urged that the withdrawal agreement itself be changed, and reminded Juncker that the British parliament had mandated her to seek “a legally binding change to the terms of the backstop.”
This is a clause in the withdrawal agreement, signed last November, that would keep Britain in the EU customs union even after a post-Brexit transition period if no way is found to keep the Irish border open.
“The discussion was robust
but constructive,” the joint statement said.
“Despite the challenges, the two leaders agreed that their teams should hold talks as to whether a way through can be found that would gain the broadest possible support in the UK Parliament and respect the guidelines agreed by the European Council.”
If no agreement is reached on the withdrawal deal, which has yet to be approved by either the British or EU parliaments, Britain will crash out of the union with no follow-on trade arrangements on March 29.
Meanwhile, Bank of England governor Mark Carney warned on Thursday that Britain’s economy is “not yet prepared” for a disorderly no-deal departure from the European Union next month.
“Although many companies are stepping up their contingency planning, the economy as a whole is still not yet prepared for a no-deal no-transition exit,” Carney told reporters in London after the bank slashed its economic growth forecasts.
As May attempts to rescue her withdrawal agreement, Carney warned that the “fog of Brexit” has sparked volatility across financial markets, the economy, and for businesses.
“The UK is leaving the European Union, not leaving Europe, and it is pursuing an ambitious (and) broad economic and security partnership,” Carney said.
“But the exact form of that partnership — how it will be settled and when that settlement will take effect — is still unclear.
“The fog of Brexit is causing short term volatility in the economic data and more fundamentally it is creating a series of tensions in the economy. Tensions for business.”
He added: “Given the dynamic of (Brexit) negotiations, we are now assuming uncertainty remains elevated for a while and that financial conditions stay tighter for longer.”
— AFP
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