Free Trial

MNI EXCLUSIVE: EU May Be Flexible With UK, Expects Little Soon

MNI (London)
--EU Could Accept Level Playing Field Divergence
--Brussels Expects Little From Monday Meeting With UK's Johnson
By David Thomas
     BRUSSELS(MNI) - The European Union is willing to accept UK standards might
diverge after what it still hopes will be a free trade deal before the end of
this year's Brexit transition period, and is prepared to step up meetings over
the summer, but officials in Brussels told MNI they expect nothing substantive
from Monday's meeting between the British prime minister and EU leaders.
     "We will have longer meetings, more meetings and also physical meetings in
Brussels and London - where possible," an official said ahead of the video call
between Boris Johnson, European Commission President Ursula von der Leyen and
other EU leaders.
     The EU side is willing to be pragmatic on level playing field issues and
accept that UK and EU standards will be subject to evolution, the official said.
This will allow for several more negotiation rounds in late June, July and
August as well as meetings on a weekly basis between EU chief negotiator Michel
Barnier and UK counterpart David Frost.
     "It's like the situation with Covid now -- we restrain rules on state aid.
Or in the financial crisis we restrained the rules on banks to avoid the doom
loop."
     "We need to accept that we have comparable standards and as time goes on we
evolve, but things should go in the right direction," an official said.
     "We need to get away from the symbolism and get to the substance. And find
a way of phrasing all this that won't offend UK ideas of sovereignty."
     Asked if the outline of an eventual 'landing zone' for agreement between
the UK and EU could be imagined, one source replied positively, while declining
to say what it might be.
     --SIGNALLING
     But Brussels officials are hoping for little on Monday beyond signalling.
     "It will be a non-event. All we can expect is that there is some positive
noise and that they will commit to working al summer," one source close to the
talks said.
     The comments follow the official confirmation from the UK on Friday that it
would not pursue any extension to the talks on a future EU-UK partnership.
     Officials indicated that they have not been impressed by a UK announcement
that it would not impose checks on imports from the EU after the end of the
year, and that the EU is not in a position to reciprocate.
     "We always thought that the UK border checks would never be ready."
--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com
[TOPICS: M$B$$$,M$E$$$,MC$$$$,MI$$$$,MT$$$$,MX$$$$,MFB$$$,MGB$$$]
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.