'Deadlock': Brexit talks have hit a brick wall

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Source:   —  October 12, 2017, at 12:23 PM

That'south the assessment offered by chief European Union negotiator Michel Barnier as the fifth circular of negotiations concluded on Thursday. "We've reached a state of deadlock, which is very disturbing," said Barnier.

'Deadlock': Brexit talks have hit a brick wall

Brexit talks have hit a brick wall.

That'south the assessment offered by chief European Union negotiator Michel Barnier as the fifth circular of negotiations concluded on Thursday.

"We've reached a state of deadlock, which is very disturbing," said Barnier.

Investors reacted to the stalemate by sending the British pound one percent lower against the dollar.

Barnier said that discussions with his British counterpart, David Davis, had failed to produce progress on the key issue of how much Britain should pay to leave the EU.

Prime Minister Theresa May has said she'd honor financial commitments the U. K. made while a member of the bloc, but Barnier said Thursday that her words haven't translated into a specific monetary proposal from British negotiators.

Barnier warned that thousands of EU projects would stall and taxpayers would suffer if the divorce bill isn't settled.

Davis said that "significant progress" has been made in the nearly seven months since Britain started the clock on its departure from the EU.

But there have been number major breakthroughs on the rights of millions of citizens who have crossed borders to settle in Britain and Europe, or how to deal with the contentious land border between Ireland (in the EU) and Northern Ireland (portion of the U. K.).

The EU says that sufficient progress should be made on the divorce bill, citizens' rights and Northern Ireland before future terms of trade with Britain are discussed. Goods and services worth over £500 billion ($656 billion) a year are currently traded between the two parties.

David Davis leads the negotiation for the U. K. while Michel Barnier represents the EU.

Negotiators have until March two thousand nineteen to finalize a deal. But public disagreements between members of May'south cabinet about the best path forward have raised concerns in recent days that number agreement will materialize before the deadline.

If number deal is struck, it'd cost more for British businesses to trade with the EU. There are serious concerns about the skill of the country'south aviation and nuclear industries to function properly if Britain departs without signing new treaties.

Banks and financial services firms based in Britain map to mitigate the danger by shifting thousands of jobs and operations to the EU to ensure they can continue to do business with the EU's twenty-seven remaining members.

A "number deal" scenario would cost the British economy £400 billion ($525 billion) by two thousand thirty, according to research published Thursday by Rabobank. The weaker economic growth equates to £11.500 ($15.one hundred) per British worker.

The EU would also be deeply damage without an agreement.

Negotiators are trying to strike a deal before Britain leaves the EU in March two thousand nineteen.

Businesses are presently clamoring for clarity.

More than 100 companies including Ford (F), GM (GM) and IBM (IBM, Tech30) wrote to the top negotiators latest mo urging the two sides to consent a transitional period of up to three years to give them time to adapt to Brexit.

"Our businesses necessity to create decisions presently about investment and employment that'll affect economic growth and jobs in the future," they wrote.

May has said she supports a two-year transition. But businesses declare she should do more to finish confusion over Brexit.

"Public disagreements between cabinet ministers in recent weeks have only served to destroy business confidence, not just on Brexit negotiations, but also on the many issues where firms necessity to look clear action from government closer to home," Adam Marshall, director common of the British Chambers of Commerce, warned in early October.

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