BREXIT: EU Says Up To UK To Come Up With Irish/NI Solutions

--New EU Paper Says Onus On UK To Find Ireland Solutions

--Financial Settlement Disagreements 'More Serious', Says Barnier

By Tara Oakes

     BRUSSELS (MNI) - EU negotiators have told the UK that it was up to the

Westminster government to come up with solutions to the Irish border question in

a new "guiding principles" paper published Thursday.

     Issues surrounding Ireland and Northern Ireland are one of the key areas

where "sufficient progress" is required by October for the EU to allow for talks

on future relationship to be launched -- something the UK has been pushing for

with increasing fervour in recent weeks.

     "The onus to propose solutions which overcome the challenges created on the

island of Ireland by the United Kingdom's withdrawal from the European Union and

its decision to leave the customs union and the internal market remains on the

United Kingdom," the EU paper reads.

     The UK has itself published a position paper on issues surrounding the

island of Ireland -- but few in the EU are convinced by their proposals.

     Key questions remain about how to ensure the continuation of the Common

Travel Area (CTA) allowing for free movement across the border which predates

membership of the EU, and the subsequent Good Friday Agreement drawn up under

the assumption that both countries were and would remain members of the bloc.

     The 500-km stretch of land border will effectively become an external

border of the EU at the moment of Brexit.

     "The UK proposes that the UK and the EU seek to agree text for the

Withdrawal Agreement that recognises the ongoing status of the CTA and

associated reciprocal arrangements following the UK's exit from the EU," the

UK's position paper reads.

     But the EU are keen to protect their single market, which Britain has

repeatedly stressed it no longer wants to be a member of.

     "What I see in the UK's paper on Ireland worries me," Michel Barnier, the

Commission's lead negotiator told journalists at a briefing in Brussels

Thursday.

     He said that Britain's stance amounted to using Ireland as a "test case"

for future customs relationships.

     "This will not happen," he added.

     CUSTOMS AND TRADE

     Four other position papers were published by the EU Thursday, covering

public procurement, intellectual property, data use and customs-related matters

"needed for an orderly withdrawal of the UK from the Union" -- not

future-related customs arrangements.

     Barnier said that the UK could not pick and choose elements it liked from

other deals the EU had struck with third countries on trade and customs.

     "It will not be possible to combine the Norway model with the constraints

of the Canada model," the EU's chief negotiator said.

     The UK doesn't just want to speed up talks on a new trade deal with the

EU27, but also make progress on FTAs elsewhere.

     But as long as they remain a member of the bloc, they are legally not

allowed to strike out on their own to make such deals before the day they leave.

     "As long as they are member, they cannot negotiate a trade deal on their

own," EU Trade Commissioner Cecilia Malmstroem reminded journalists in Brussels

Thursday. They will automatically drop out of existing EU-negotiated FTAs on

departure day, she added.

     ALL ABOUT THE MONEY

     A financial settlement remains the key sticking point in talks, with

documents released by the EU Wednesday detailing minutes of a July 12 Commission

meeting accusing Britain of "tactics ... deferring any progress on the budgetary

issue until the second phase of negotiations, which would not be compatible with

the European Council's political guidelines and the mandate from the Council".

     Little progress has been made since except the UK admitting it does have

some obligations to the EU on withdrawal.

     At the last round of talks, the UK disputed that the legal obligation for

this stems from the 7-year Multiannual Financial Framework (MFF) signed up to

when still a member, but rather from annual EU budgets.

     But Barnier Thursday accused the UK of "backtracking" on commitments where

people and projects were already counting on EU funding.

     "We can't have 27 paying for what was promised by 28," he said.

     PRESENCE COUNTS

     The same July meeting minutes showed unease on their side about a lack of

commitment from British negotiators.

     "[Barnier] noted in this regard that David Davis, the Secretary of State

for Exiting the European Union, did not regard his direct involvement in these

negotiations as his priority," the document reads.

     "[H]e emphasised the importance for himself personally of being able to

negotiate with a stable, accountable and authorised interlocutor who was

available for the negotiations, in his view a fundamental condition for their

smooth conduct," it adds.

     Barnier's concerns were shared by EC President Jean-Claude Juncker at the

meeting, the minutes say.

     "[Juncker] expressed his concern about the question of the stability and

accountability of the UK negotiator and his apparent lack of involvement, which

risked jeopardising the success of the negotiations. He invited Mr BARNIER to

remain firm on this point and not to accept discussions at the purely technical

level with negotiators who had no political mandate, while fundamental political

questions still remained," the paper reads.

     Any push made by the EU to ensure a more consistent presence from Davis

throughout the week after the July EC meeting clearly had no great effect: he

left on the Monday of August's round of talks, only to return on Thursday.

     Asked whether the Commission was still concerned, EC Deputy Chief

Spokeswoman Mina Andreeva said that minutes of the latest meeting of

commissioners would be published in two weeks' time.

     "We've clearly moved on since July," she said.

--MNI Brussels Bureau; +44 203-865-3851; email: tara.oakes@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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