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Brace for Brexit crash, EU warns, as Raab brings ‘vigour and vim’

BRUSSELS (Reuters) – London’s new Brexit secretary mentioned he introduced new “vigour and vim” to talks on his first journey to Brussels on Thursday, because the EU warned business to prepare for Britain crashing out of the bloc with out agreed phrases to cushion the financial disruption.

Brexit campaigner Dominic Raab, appointed to the government final week after his predecessor give up over Prime Minister Theresa May’s proposals to tie Britain near EU buying and selling guidelines, mentioned he needs talks to “heat up” forward of a gathering to put out her concepts to EU chief negotiator Michel Barnier.

The resignation of his predecessor David Davis and others, and May’s battles in parliament with pro- and anti-Brexit wings of her personal Conservative occasion, have fuelled new questions in Brussels over whether or not London is able to agreeing any deal this 12 months to keep away from chaos when it leaves in March.

That, the manager European Commission insisted on Thursday, was not the rationale for its warning on stepping up preparedness for a “no deal” or “cliff edge” Brexit.

Raab mentioned he would strategy negotiations “with renewed energy, vigour and vim” and quoted his counterpart’s oft-repeated warning that the clock is ticking on reaching a deal.

“I am looking forward to intensifying, heating up the negotiations, and making sure we are in the best position to get the best deal,” Raab advised reporters.

EU officers and diplomats nonetheless suppose some type of deal, together with a 21-month established order transition interval to permit additional talks, is extra probably than not, if solely as a result of the price for either side could be so excessive.

“While the EU is working day and night for a deal ensuring an orderly withdrawal, the UK’s withdrawal will undoubtedly cause disruption, for example in business supply chains, whether or not there is a deal,” the Commission mentioned in an announcement.

“Preparedness is not a mistrust in the negotiations,” an EU official added, saying large corporations gave the impression to be advancing of their plans however smaller firms which had by no means traded outdoors the only market earlier than would face challenges of their paperwork.

A senior British regulator additionally warned Britain’s banks and insurers on Thursday to plan for a “hard” Brexit.

The International Monetary Fund mentioned on Thursday that EU international locations will endure long-term injury equal to about 1.5 % of annual financial output if Britain leaves the bloc and not using a free commerce deal subsequent 12 months.

BARNIER BRIEFS

Barnier is because of report again on his assembly with Raab to ministers from the opposite 27 EU states on Friday.

Britain’s Secretary of State for Exiting the European Union Dominic Raab, European Union’s chief Brexit negotiator Michel Barnier and employees members attend a gathering in Brussels, Belgium July 19, 2018. Olivier Matthys/Pool by way of Reuters

Ahead of talks with Raab, Barnier mentioned the EU was providing an “unprecedented” partnership on future commerce relations and that sustaining a detailed partnership on safety was “more important than ever given the geopolitical context”.

EU officers and diplomats have mentioned final week’s White Paper is a welcome if overdue place to begin for negotiations on an overview of post-Brexit relations that’s to accompany a binding treaty on the fast facets of withdrawal. But Barnier may even be posing many questions on simply how some points, notably round customs and sharing regulatory requirements would work.

Getting an overview on these is important to fixing the largest impediment to the pressing withdrawal treaty — find out how to keep away from customs and different friction on the brand new EU-UK land border in Ireland.

Officials getting ready Friday’s EU ministerial assembly mentioned it could focus on points round preparedness however not the query of what would occur to the Irish border with none deal. Dublin and London say they’re dedicated to avoiding a “hard border” however the EU can also be decided to keep away from creating an enormous loophole within the exterior frontier of its single market and customs union.

With time operating quick and little signal of May quelling the revolts in her occasion, there has been renewed dialogue amongst Brussels diplomats and officers about whether or not a deal can actually be achieved by October, or on the newest December, to permit parliaments on either side to ratify a withdrawal treaty earlier than March 29.

“When I see the dynamics in Westminster, I don’t think that there is, at this stage, a majority for whatever type of thing we could ever agree with them,” one senior EU official mentioned.

However, whereas EU leaders have made no secret of being prepared to increase the deadline for just a few weeks, there are deep reservations about any longer delay on Brexit, wanting a revolutionary U-turn in Britain and a transparent name from London to name Brexit off.

Slideshow (eight Images)

Among issues for delaying Brexit is a European Parliament election in late May 2019 which might create questions over when and the way it may ratify a late Brexit deal, assuming Britain doesn’t elect members to the brand new legislature.

Reporting by Alastair Macdonald, Alissa de Carbonnel and Robert-Jan Bartunek; Editing by Catherine Evans

Our Standards:The Thomson Reuters Trust Principles.

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