Merkel boosts hope of progress as leaders gather in Brussels

World leaders are gathering in Brussels (Photo by Dan Kitwood/Getty Images)

German Chancellor Angela Merkel gave Theresa May a Brexit boost as EU leaders gathered for a summit in Brussels yesterday, saying there were “encouraging” signs that talks on the future UK/EU trade relationship could begin as early as December.

Britain had already given up hope of receiving a green light for trade talks at the two-day European Council, after chief EU negotiator Michel Barnier said last week that insufficient progress had been made in divorce talks to move on to the second phase, dealing with trade.

The Prime Minister made clear she was no longer expecting a breakthrough this week, characterising the summit as an opportunity to “take stock” of progress so far.

But she said she would be setting out “ambitious plans” for further negotiations in the weeks ahead, and said she wanted to inject a new “urgency” into discussions on the post-Brexit rights of EU citizens living in the UK and Britons on the continent.

Mrs Merkel held out the prospect the leaders of the remaining 27 EU states may be ready to kick off trade talks at their next scheduled summit, telling reporters that enough progress had been made to encourage her to think it will be possible to “take the work forward and then reach the start of the second phase in December”.

European Council president Donald Tusk has indicated the EU27 may agree today to begin internal scoping discussions on their position on a possible trade deal, which would allow formal negotiations with the UK to begin around Christmas if further progress is made on the divorce issues of citizens’ rights, the Irish border and Britain’s financial settlement.

But he warned on Wednesday that a move to formal trade negotiations in December would require “more concrete proposals from the British side”, in comments reflecting pressure from Brussels for further UK concessions on a so-called “divorce bill” which could reach €60 billion (£53bn).

Mrs May was also expected to urge the other 27 leaders, when she addresses them over dinner last night, to prepare for talks on an “implementation period” of around two years after the official Brexit date in March 2019 to give businesses and governments time to transition to the new relationship.

Arriving in Brussels at the start of the two-day summit, Mrs May said: “This council is about taking stock. It is also about looking ahead to how we can tackle the challenges that we all share across Europe.

“That means of course continued co-operation, co-operation which must be at the heart of the strong future partnership that we want to build together.

“Of course we will also be looking at the concrete progress that has been made in our exit negotiations and setting out ambitious plans for the weeks ahead. I particularly want to see an urgency in reaching an agreement on citizens’ rights.”

Before travelling to the Belgian capital, Mrs May issued a message to the estimated three million EU citizens in the UK, telling them that she wants them to be able to stay after Brexit and that a deal on their rights is “in touching distance”.

In an open letter posted on her Facebook page and mailed to 100,000 EU nationals, Mrs May repeated her message that “EU citizens living lawfully in the UK today will be able to stay” after Brexit.

She set out measures to make it easier for EU expats to take on the new “settled status” which will allow them to remain.

French President Emmanuel Macron said there had been attempts to create divisions within the EU, but that the 27 would show “very strong unity in the discussions on Brexit”, with shared goals and support for Mr Barnier as the EU’s sole chief negotiator.

Other EU leaders indicated that they were hopeful for a breakthrough at the 14-15 December summit.

But hardline Brexiteers tried to step up pressure on Mrs May for a no-deal Brexit, with an open letter signed by four Tory former cabinet ministers including ex-chancellor Lord Lawson urging her to walk away from talks.