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Oris Johnson has been warned that failure to reach an agreement with the EU would cause “colossal” damage to the economy after he said failure to reach an agreement was now a “great possibility.”
The prime minister, as talks with the bloc continued to falter, ordered his cabinet to prepare for a no-deal at the end of the Brexit transition period.
He said that “the deal on the table is really not the right one at the moment,” adding that it would leave the UK vulnerable to sanctions or tariffs if it does not follow new EU laws.
Tobias Ellwood, a leading Conservative supporter, told the prime minister that a no-deal would cause “colossal” long-term damage to the UK economy and urged the two sides to show “political courage” to negotiate a deal.
Prime Minister says no-deal Brexit is now a ‘strong possibility’ amid deadlock in negotiations
“Let’s not go away and provoke a no-deal that would be devastating not only for Britain but also for the European Union,” the chairman of the Commons defense committee told BBC News.
Scotland’s Prime Minister Nicola Sturgeon, speaking after Johnson suggested the chance of not reaching a deal was increasing, said such an outcome would be “catastrophic.”
The SNP leader told CNN: “I think the chances of an agreement now are almost infinitely small. They are not non-existent, and I am hopeful, I suppose, because not reaching an agreement would be catastrophic.”
“But I’m starting to worry not only that the prospect of not reaching an agreement is now overwhelming, but that Boris Johnson is almost planning that.”
Johnson said the current proposals will keep the nation “as if locked in the orbit of the EU,” but insisted that negotiators “will go the extra mile” to try to get a treaty in time for Dec. 31.
However, he said he told his cabinet on Thursday night to “go ahead and make those preparations” for a departure without a deal, or in an “Australian relationship,” as he puts it.
“I think we have to be very, very clear, now there is a great possibility, a great possibility, that we have a solution that is more like an Australian relationship with the EU than a Canadian relationship with the EU.” he said.
The prime minister’s warning came after his dinner with European Commission President Ursula von der Leyen in Brussels on Wednesday failed to produce a breakthrough.
When negotiators resumed talks, Ms Von der Leyen set up no-deal plans for emergency legal agreements to keep planes flying into the UK and trucks crossing Europe.
Raab admits ‘significant differences persist’ in Brexit trade talks
The two leaders agreed that a decision will be made on the future of the negotiations at the end of the weekend.
On Thursday, von der Leyen told a summit of EU leaders that the negotiations are “difficult”.
In his first interview since dinner, Johnson said the UK will do “everything possible” to reach an agreement when asked if it would be a policy failure not to do so.
He said he would be willing to return to Brussels, or head to Paris or Berlin to close a deal, in a clear reference to French President Emmanuel Macron and German Chancellor Angela Merkel, who are seen as two inflexible figures not to give in. to British demands.
“At the moment, I have to tell you quite frankly that the treaty is not there yet and that is also the strong opinion of our Cabinet,” Johnson added.
He said sticking points include “equivalence,” which he said would keep the UK “locked” in the bloc’s regulatory orbit, and fishing, which under current proposals would mean “we would not yet have control of our waters.”
Johnson insists the UK can “prosper mightily” without a deal, but the financial watchdog at the Office of Budget Responsibility has suggested that a no-deal result could wipe out 2% of gross domestic product, a measure the size of the economy. – in 2021.
Experts have indicated that it could be around 45,000 million pounds sterling.
Meanwhile, the EU’s contingency proposals for no deal included for European fishing vessels to continue to have access to UK waters next year.
In response, the prime minister’s official spokesman said: “We will never accept arrangements and access to UK fishing waters that are incompatible with our status as an independent coastal state.”
But he said the government will “closely examine” the mini-agreements proposed by the EU if there is no blanket agreement.
Ms Von der Leyen was updating EU leaders on the situation during the Brussels summit.
The fact that negotiators Lord Frost and Michel Barnier met again on Thursday at least gave some hope.
Irish Taoiseach, Micheal Martin, said a deal was “within reach” when he reached the summit.
“I think the fact that they met for quite a long period of time and that frank exchange of views is in itself a good thing, and the fact that the negotiators are mandated to go back in and try to break the stagnation, “he added. Said the Irish Prime Minister.
The UK has not ruled out the possibility of talks continuing beyond Sunday, but ministers stressed the need for “finality” in the process.
Chancellor Dominic Raab said it is “unlikely” that the talks will continue after that deadline, but added: “I cannot categorically exclude it.”
Negotiations have failed on fishing rights, a level playing field (measures aimed at preventing the UK from undermining the EU on state rules and subsidies) and how any deal will be governed.
