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Countries have been pursuing war game strategies, amid concerns that both sides are “too entrenched” in their positions to reach an agreement before the deadline. A high-level diplomatic source in an influential member state said the no-deal schism would be painful, but it could focus the minds of both sides. They told The Telegraph: “We will have a period of chaos, but if we need to see how things turn out and how much it hurts before the politicians come to their senses, so be it.
“There is nothing that says that just because there is no agreement, there can never be trade negotiations again.
“We could have a scenario where it will not work in time, but in the future.”
Another EU source said trade negotiations with Brussels will not resume after the deal.
Instead, Britain would be forced to sign bilateral agreements with individual member countries.
Michel Barnier is expected to avoid getting involved in the details of possible compromises in the European Council, especially on fishing rights, where the EU has regressed from its initial negotiating position.
The prime minister held phone conversations with German Chancellor Angela Merkel as the countdown to the deal’s deadline loomed.
The two leaders spoke on Sunday, a day after the prime minister held similar talks with French President Emmanuel Macron.
The intensive diplomacy comes apparently with only a few days to reach agreement on a future trade deal between Britain and Brussels.
Responding to questions about his call with Merkel, a Downing Street spokesperson said: “He described the current situation regarding negotiations on the future relationship between the UK and the EU, emphasizing the UK’s desire to reach an agreement. .
“The Prime Minister emphasized that while reaching an agreement in the next few days would be beneficial to both parties, the UK was also prepared to end the transition period on Australia-style terms if an agreement were not possible.
“The Prime Minister emphasized that progress must be made in the coming days to bridge the important gaps, particularly in the areas of fishing and the level playing field, through the process of intense talks between the main negotiators.”
Both sides have said that an agreement needs to be reached in October to ensure sufficient time for ratification.
Johnson has previously said that he wants an agreement on a free trade deal before next week’s EU summit in the Belgian capital.
A spokesman for No. 10 added that Johnson “exposed the latest situation” in his phone call with Macron.
Spokesperson 10 said: “It confirmed the UK’s commitment to explore all avenues to reach an agreement.
The Prime Minister stressed that progress must be made in the coming days to close important gaps, especially in the areas of fisheries and a level playing field, through the process of intensive talks between the heads of negotiation agreed with the president of the European Commission.
“The leaders agreed to stay in touch on the issue.”
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