ADVERTISEMENT

U.K. Welcomes Barnier Words in Sign Brexit Talks Could Restart

EU’s Barnier Highlights U.K. Sovereignty in Bid to Resume Talks

The U.K. welcomed European Union chief Brexit negotiator Michel Barnier’s remarks on the importance of the U.K.’s sovereignty, in a sign the two sides are ready to resume trade talks.

“What’s at stake in these negotiations is not the sovereignty of one side or the other,” Barnier told the European Parliament. The EU’s principles in the talks “are fully compatible with the respect of British sovereignty, a legitimate concern of Boris Johnson’s government,” he said.

When it broke off talks last week, the U.K. government cited not being treated by the EU as a “sovereign equal” as one of the reasons.

Shortly after Barnier spoke, a U.K. spokesperson said the government was studying his words carefully and that he’d spoken “in a significant way.”

Barnier and his British opposite number, David Frost, will speak on Wednesday for the third time in as many days in a bid to get negotiations back on track.

‘Incredibly Positive’

The Frenchman said that despite Boris Johnson’s suspension of talks last week, a deal is within reach. He said the agreement must reflect a “balanced compromise” between the two sides.

The pound rose as much as 0.9% to $1.3065, the highest in a week.

So far, the U.K. had said the EU hadn’t done enough to prove it has fundamentally changed its approach.

“It sounds incredibly positive that he’s talking about the sovereignty of the United Kingdom,” U.K. Business Minister Nadhim Zahawi said in an interview with Bloomberg Television. “We have always entered these negotiations on the prerequisite, which is only fair and right, that we are treated as a sovereign and that we negotiate as an independent sovereign nation.”

U.K. Welcomes Barnier Words in Sign Brexit Talks Could Restart

The U.K. wants the EU to show that it is fully committed to getting a deal and is willing to make concessions. For its part, the EU wants the British government to compromise on the so-called level playing field for business, notably on how it will use state aid.

On this too, Barnier signaled there could be light at the end of the tunnel.

“The level playing field remains a fundamental concern,” Barnier said. “The past few weeks we’ve seen that the U.K. is willing to look at this demand and to move forward and shift.”

The U.K. is “willing to do things in a different way to what exists in current trade deals among other countries,” he said.

If the EU and the U.K. fail to reach a trade agreement, consumers and businesses will face the cost and disruption of tariffs and quotas in just 10 weeks’ time.

©2020 Bloomberg L.P.