Brexit: Boris Johnson and Ursula von der Leyen arrive to begin dinner meeting in Brussels

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Britain is teetering on the brink of no deal Brexit tonight after Boris Johnson and Ursula von der Leyen set a final deadline of Sunday for a breakthrough and warned that ‘very large’ gaps remain.

The PM and the EU chief took stock of the dire situation for more than three hours as they ate steamed turbot and scallops – the source of many skirmishes between UK and French fishing boats – at the commission’s HQ in Brussels. 

But the pair failed to find a way through the impasse that has left trade talks on the verge of collapse, a year after Britain formally left the bloc. 

Instead they are ordering Michel Barnier and Lord Frost to re-engage, on the understanding that unless a resolution has emerged within four days the plug will be pulled. However, it is not clear if they have been given any new political instructions – thought to be critical to shift the deadlock. 

In a grim assessment, a No10 source said Mr Johnson did not want to leave ‘any route to a possible deal untested’. ‘The PM and Ursula von der Leyen had a frank discussion about the significant obstacles which remain in the negotiations,’ the source said. 

‘Very large gaps remain between the two sides and it is still unclear whether these can be bridged. The PM and Ms von der Leyen agreed to further discussions over the next few days between their negotiating teams. 

‘The PM does not want to leave any route to a possible deal untested. The PM and Ms von der Leyen agreed that by Sunday a firm decision should be taken about the future of the talks.’

Ms von der Leyen said in a statement: ‘We had a lively and interesting discussion on the state of play on outstanding issues. We understand each other’s positions. 

‘They remain far apart. The teams should immediately reconvene to try to resolve these issues. We will come to a decision by the end of the weekend.’ 

Mr Barnier and Lord Frost have wrangled unsuccessfully for months over access to UK waters, level playing field rules and how to enforce the terms, and finally admitted earlier this week that they could not make any more progress. 

Mr Johnson set the tone for the showdown earlier by telling MPs no prime minister could accept the demands the EU is making, which include obeying rules it makes in the future, as well as those currently in place. 

In a bullishly optimistic performance at PMQs, Mr Johnson said the UK would ‘prosper mightily’ with or without an agreement – even thought the Office for Budget Responsibility (OBR) has suggested the collapse of talks would knock two percent off GDP next year.

Bank of England governor Andrew Bailey has warned that the long-term damage from falling back on World Trade Organisation terms would be worse than the economic hit from coronavirus.

Tory MPs urged Mr Johnson to stick to his guns, insisting his pledge to ‘take back control’ and put sovereignty first must not be sacrificed to get a deal. But Sir Keir Starmer accused the PM of bungling the negotiations, swiping: ‘Secure the deal, Prime Minister. You promised it.’

Responding to the development, Labour deputy leader Angela Rayner tweeted: ‘One year after Boris Johnson promised us an oven-ready deal he has completely failed. The failure to deliver the deal he promised is his and his alone.’

Labour’s shadow chancellor of the Duchy of Lancaster Rachel Reeves said: ‘The Prime Minister promised an oven-ready deal. He needs to get it done so we can focus on what matters to the British people: securing our economy, protecting our NHS and rebuilding our country.’

SNP Westminster leader Ian Blackford called a no deal Brexit ‘a massive failure of diplomacy and leadership which @BorisJohnson has to take ownership of’. 

He tweeted:‘On top of the health & economic impact of covid this is self induced self harm. Disruption to trade, tariffs, higher prices and lost jobs is never a price worth paying.’ 

Downing Street had been trying to play down expectations for this evening’s showdown, insisting it is not a negotiation and suggesting the best outcome would be ‘political impetus’ that could allow the two negotiating teams to engage again. 

As Mr Johnson arrived at the Berlaymont building earlier, he was given a reminder by Ms von der Leyen of the need for social distancing – with Brussels in the midst of a tough coronavirus lockdown.  

As the two leaders posed for the cameras, the Prime Minister asked if they were taking their masks off.

The commission president agreed, but told Mr Johnson to ‘keep distance’ as they briefly removed their face coverings.

Ms von der Leyen added: ‘Then we have to put it back on. You have to put it back on immediately.’

The Prime Minister responded, saying: ‘You run a tight ship here, Ursula, and quite right too.’

The pair then headed off for a one-on-one meeting, before dinner.

Around the table with the PM and Ms von der Leyen were the chief negotiators Mr Barnier and Lord Frost, as well as a few other key officials.

The menu for such meals is always closely watched for hints of the mood and subtle jokes by the host.

And this occasion was no exception, with two seafood courses in an apparent nod to the bitter dispute over fishing rights for UK waters. 

The starter was pumpkin soup and scallops; while the main was steamed turbot and mashed potatoes with wasabi and vegetables.

Desert was Pavolova with exotic fruit and coconut sorbet.

In the Commons this afternoon, Mr Johnson insisted a ‘good deal is still there to be done’ despite the increasingly bitter standoff. 

But he made clear that there will need to be movement on the EU’s side if there is to be a trade accord agreed and rolled out before of the end of the ‘standstill’ transition period on December 31. 

‘Our friends in the EU are currently insisting that if they pass a new law in the future with which we in this country do not comply or don’t follow suit, then they want the automatic right to punish us and to retaliate,’ Mr Johnson told MPs.

‘Secondly, they are saying that the UK should be the only country in the world not to have sovereign control over its fishing waters. I don’t believe that those are terms that any prime minister of this country should accept.’

Earlier, Cabinet Office minister Michael Gove cautioned that Mr Johnson could pull the plug on negotiations unless the EU shifts on the sticking points of fishing rights, ‘level-playing field’ rules and enforcement of the deal.

He suggested the ‘glide path’ had been made easier by a settlement of another major row over the implementation of the original Brexit divorce terms. 

But he insisted the UK will never bow to pressure over future rules and regulations – proposals that dramatically resurfaced last week after a fresh offensive from Michel Barnier and French president Emmanuel Macron. 

Mr Gove said the premier would spell out the ‘political realities’ with Ms von der Leyen later.  

As pressure grew yesterday, Mr Barnier – who increasingly looks to be a major roadblock to an agreement – warned the chances of a deal are ‘very slim’.

Mr Johnson yesterday offered a significant olive branch by agreeing to scrap controversial legislation that broke part of the original Brexit deal relating to Northern Ireland.

The EU had said it would not sign an agreement if the legislation remained. 

In another major concession the EU will be allowed to have officials stationed in Northern Ireland, a sticking point on which Britain had previously stood firm.

The DUP called it ‘unnecessary’ and ‘concerning’, while Brexiteers made clear they will be watching closely to see if Mr Johnson cedes further ground to Ms von der Leyen.

But government sources said big gaps remained between the two sides on key issues – and warned that the PM could pull the plug on negotiations if no progress was made.

One source said the two sides were too far apart for a deal to be struck tonight. But Mr Johnson hopes the two leaders can identify a breakthrough which their negotiators can finalise in the following days.

‘The aim is to unlock things so they can give their teams the authority to keep going and finalise the issues,’ the source said. 

‘But if they strike out and make no progress then that is going to be it – there is no point carrying on for the sake of it.’

German Chancellor Angela Merkel said she did not believe it will be clear tonight whether a deal will be done. 

‘I don’t think we will know by tomorrow if this will happen or not, at least I can’t promise this but we are still working on it,’ she told the Bundestag.

‘But we are also prepared for conditions we cannot accept. So if there are conditions coming from the British side which we cannot accept, then we will go on our own way without an exit agreement. Because one thing is certain: the integrity of the single market has to be maintained.’

Mrs Merkel said the ‘big, difficult question’ was over the rules on obeying future regulations, with the EU fearing the UK will gain a competitive advantage by refusing to follow its standards. 

‘There are a number of complicated questions, which mostly are down to how to deal with the dynamic,’ she said. 

‘We currently more or less have the same legal system, a harmonised legal system, but over the years the legal systems will diverge regarding environment law, labour law, health legislation, everywhere.

‘And how will the respective other side react to this, when the legal situation either in the European union or in Great Britain will change? And we can’t just say we won’t talk about this, but we not only need a level playing field for today but also for days to come.

‘For this we need to find agreements about how each side can react when the other changes their legal situation. Otherwise there will be unfair competition conditions, which we can’t do to our companies.’

In a round of interviews this morning, Mr Gove refused to give a percentage chance for a deal.

‘I’m hopeful that the Prime Minister will be able to lay out, over the course of dinner, where movement is required,’ he told Sky news.

‘The conversation between the Prime Minister and the president tonight, I hope, will create further political momentum, which will make sure that we do reach an agreement.’

Mr Gove insisted the UK ‘holds the cards’ in the talks, with fishing rights and as a major purchaser of EU goods. That was why the bloc had been trying to ‘claw back advantage’ over the past week, he argued. 

‘I think that the political realities that he will share with Ursula von der Leyen tonight give us the best chance of reaching a deal,’ Mr Gove added.   

He confirmed that ‘level-playing field’ rules are now the main issue that needs to be overcome.

‘The issue of particular contention is that last week the EU negotiators didn’t simply want an arrangement whereby we pledge what we call non-regression – which is common in most trade treaties, which means you maintain the standards at the point of entry – they actually wanted an arrangement that meant if the EU adopted new laws, that the UK would have to (follow them) or the EU would retaliate,’ he told BBC Radio 4’s Today programme.

‘We can accept the non-regression principles, which are common to free trade agreements, which indeed Canada entered into and that’s the point we’ve always made – we want an arrangement similar to the one Canada has with the European Union.’ 

Mr Barnier and his UK counterpart Lord Frost are both due to attend this evening’s dinner between Mr Johnson and Ms von der Leyen.  

Many in Westminster are unsure whether the PM’s trip to Brussels should be seen as a good sign or as a bad sign for the chances of a deal being done. 

One Cabinet minister said: ‘None of us really know what is going on. Is he going because he thinks there is a chance that he can return victorious with a piece of paper?

‘Or does he already know it’s probably No Deal and just wants to be seen to be doing everything he can?

‘Either way, it is entirely his call. Everyone wants a deal, but no-one is pushing him to take it at any price. It is down to his judgment.’

The crunch talks between Mr Johnson and Ms von der Leyen will take place just hours before European leaders will meet for an EU Council summit in Brussels tomorrow.

Charles Michel, the President of the European Council, said the summit would not formally discuss the negotiations with the UK but Ms von der Leyen is expected to brief leaders on the state of play.  

There had been fears Mr Macron could use the summit to grandstand on his opposition to a compromise, effectively wrecking hopes of a deal.

Downing Street blamed Mr Macron for torpedoing talks last week by pressuring Mr Barnier into toughening his stance just as progress was being made.

Two EU diplomats told the Mail that the chances of a Brexit deal were ‘now out of Barnier’s hands’.

Mr Johnson said the situation was ‘very tricky’ but he hoped the ‘power of sweet reason’ could still clinch an agreement in the final days before the Brexit transition ends later this month.

He acknowledged there may be a point where it is ‘time to draw stumps’ and accept that a deal is impossible.

Talks have stalled on the vexed issues of fishing access and the UK’s right to set its own destiny without having to follow EU rules after Brexit.

The EU is prepared to accept only modest cuts to its fishing quotas and wants them phased in over ten years.

Brussels is also demanding that the UK compete on a so-called ‘level-playing field’ in future.

Former Conservative leader Iain Duncan Smith said the outstanding issues in the negotiations with the European Union were about sovereignty and not trade.

He told BBC Radio 4’s Today programme: ‘I think at the moment the problem that the Prime Minister faces is that this is not any longer about a trade deal – a trade deal is sitting in the wings.

‘What this is all about is sovereignty, the question of how far can the EU insist that their courts and their rules and their regulations apply to the UK as we go forward, leaving the UK trapped in the orbit of the EU without any say, and that’s simply unacceptable to the Prime Minister.’

Mr Johnson is willing to guarantee the UK will not lower existing standards in areas such as state aid subsidies, workers’ rights and the environment, but Brussels also now wants the UK to adopt future EU regulations, and is demanding the power to levy ‘lightning tariffs’ if we diverge – an idea No 10 says is unacceptable.

Mr Johnson said yesterday: ‘Our friends have just got to understand the UK has left the EU in order to be able to exercise democratic control over the way we do things.

‘There is also the issue of fisheries where we are a long way apart still. But hope springs eternal, I will do my best to sort it out if we can.’

Mr Barnier told MEPs this week that today was the final deadline for a deal, as it had to be signed off by leaders at tomorrow’s EU summit.

But the EU yesterday played down his comments, and suggested that talks could carry on until the end of this month – and possibly even into next year.

Downing Street said the UK was willing to continue talks for ‘as long as we have time available’ – but ruled out any extension into next year.

Tory Eurosceptics urged Mr Johnson not to back down on the UK’s red lines tonight.

In a message to the PM on Twitter, former party treasurer Lord Ashcroft said: ‘At dinner in Brussels, grip your marbles tight, pour lead in your pencil, don’t go wobbly and don’t cross your stated red lines… good fortune.’

Former Brexit minister David Jones said a deal was now only possible if the EU gave ground.

He said: ‘We will never again allow our trade and regulatory policy to be dictated by other countries. A free trade agreement is one thing; subservience is another. 

Michael Gove says Northern Ireland companies will not need to fill out forms to export goods to Britain as he claims the UK rejected EU demands for a ‘mini-embassy’ in Belfast  

Michael Gove today insisted Northern Ireland businesses will not need to fill out export forms to send goods to Britain when the post-Brexit transition period ends. 

The Minister for the Cabinet Office said a deal on border arrangements struck with the EU means firms in Northern Ireland will have ‘unfettered access’ to the mainland.  

The announcement represents a win for Boris Johnson who previously vowed he would not agree to terms that would allow checks to be carried out on goods travelling between Northern Ireland and Great Britain. 

The Prime Minister had memorably told business leaders to personally phone him if border officials ever asked to see their paperwork.

Meanwhile, Mr Gove claimed the UK had rejected an EU demand to have a ‘mini-embassy’ based in Belfast. 

The terms of the so-called Northern Ireland Protocol will allow EU officials to monitor border checks but Mr Gove said they ‘will not have any powers to carry out checks themselves’. 

Setting out the details of the protocol to MPs in the House of Commons this afternoon, the Minister for the Cabinet Office said there will be no additional requirements placed on Northern Ireland businesses.

He said: ‘This deal protects unfettered access for Northern Ireland businesses to their most important market as the Prime Minister underlined.

‘This had to be protected in full and that meant removing any prospect of export declarations for Northern Ireland goods moving from Northern Ireland to Great Britain.

‘As for what our agreement will do, there will be no additional requirements placed on Northern Ireland businesses with a very limited and specific exception of trade in endangered species and conflict diamonds.’

Mr Gove sought to downplay the role which will be played by EU officials under the new arrangements.  

He told MPs: ‘There’ll be no Belfast mini-embassy or mission, as some in the EU originally sought, and the EU officials will not have any powers to carry out checks themselves.

‘There will, instead, be sensible, practical arrangements – co-operation, reciprocal data-sharing – so that both sides can have confidence in these unique arrangements.’ 

The protocol is due to come into effect from the start of next year and is set to keep Northern Ireland in line with some EU regulations on the single market to allow an open border and free flow of goods and services across the island. 

Mr Gove confirmed there will be a three-month ‘grace period’ for supermarkets and traders ‘in order to make sure that they are ready for any health export certificate requirements’.  

‘This deal would keep goods flowing between Great Britain and Northern Ireland in January, and indeed provide some necessary additional flexibilities,’ he said.  

‘It protects Northern Ireland’s supermarket supplies. We heard throughout the year that traders needed time to adapt their systems, that’s why we’ve got a grace period for supermarkets to update their procedures.

‘Our agreement also prevents any disruption at the end of the transition period on the movement of chilled meats. British sausages will continue to make their way to Belfast and Ballymena in the new year.’

The implementation of the protocol which is underpinned by the Brexit divorce deal was agreed by a joint EU-UK committee earlier this week.  

The breakthrough meant controversial clauses in the Internal Market Bill which related to Northern Ireland and which the Government had previously admitted broke international law could be removed.