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The Brussels bureaucrat said that the government’s proposals on future state subsidy policy “do not significantly meet the commitments” signed by Boris Johnson less than a year ago. He also insisted that the UK had failed to live up to expectations regarding a level playing field for workers’ rights, the environment and health and safety standards. Speaking after the eighth round of trade talks, Mr Barnier said: “Significant differences remain in areas of essential interest to the EU.
“The United Kingdom refuses to include essential guarantees of fair competition in our future agreement, while requesting free access to our market.
“We have taken note of the UK government’s statement on ‘a new approach to controlling government hikes.’
“But this falls far short of the commitments made in the Political Declaration.
“In the same way, we still lack important guarantees regarding the non-regression of social, environmental, labor and climate standards.”
Michel Barnier is stepping up Brexit preparations without an EU deal (Image: PA)
The British put forward plans to follow the World Trade Organization rules for state aid after the post-Brexit transition period expires at the end of the year.
Barnier also insisted that Downing Street would have disclosed more of its food safety plans to avoid being phased out of food imports from third EU countries.
“More clarity is needed for the EU to make the assessment for the UK’s inclusion in third countries,” added the French.
After a furious trade dispute erupted following the publication of British plans to allow ministers to overwrite large sections of the EU Withdrawal Agreement, Barnier said the bloc would step up its preparations for a no-deal Brexit.
“To conclude a future partnership, mutual trust and confidence are and will be necessary,” he said.
“At the same time, the EU is intensifying its adaptation work to be ready for all scenarios on January 1, 2021.”
Meanwhile, the Commission has given Downing Street until the end of the month to make significant changes to its controversial new Brexit plan or face the end of trade talks.
The commission’s vice chairman, Maros Sefcovic, called for the immediate withdrawal of the government’s internal market bill during a tense standoff with Michael Gove.
The Brussels bureaucrat accused Downing Street of threatening the Good Friday Agreement with its plans to give ministers the power to invalidate parts of last year’s EU Withdrawal Agreement.
He also insisted that the bloc could take legal action against Britain, including massive financial and trade sanctions.
The warning came during an emergency meeting of the Joint Brexit Committee demanded by the bloc following the publication of the legislation.
Mr Sefcovic said that “the UK government should withdraw these measures from the bill in the shortest time possible and in any case before the end of the month”.
He added: “By introducing this bill, the UK has seriously damaged the trust between the EU and the UK. It is now up to the UK government to restore that trust. “
A statement from the European Commission said: “If the bill were adopted, it would constitute an extremely serious violation of the Withdrawal Agreement and international law.
“The EU does not accept the argument that the aim of the bill is to protect the Good Friday Agreement. In fact, she thinks it does the opposite.
“He reminded the UK government that the Withdrawal Agreement contains a series of legal mechanisms and remedies to address violations of the legal obligations contained in the text, which the European Union will not hesitate to use.”
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