Brexit: Boris Johnson to speak with European Commission chief ahead of crunch summit

Boris Johnson is to hold talks with European Commission president Ursula von der Leyen on Wednesday, on the eve of his self-imposed deadline for a breakthrough in Brexit trade talks.

But it is not thought the pair’s second phone contact in the space of a month heralds a surprise breakthrough in negotiations which have been mired for months in unproductive discussions over fisheries, state aid and Brussels’ demand for a level playing field on standards as the price of access to the single market.

One UK source said the planned discussion was expected to be “routine”.

The prime minister this morning told cabinet that negotiations are “at a crucial stage” but he still believes a deal can be done in time for the UK’s transition to post-Brexit trading arrangements on 31 December.

Chief negotiator David Frost is in Brussels for talks with Michel Barnier ahead of a crucial summit of EU leaders on Thursday.

But Lord Frost has recently indicated that the UK may not walk away from the talks if it does not get a deal at the 15 October summit, as Mr Johnson previously threatened. The negotiator told MPs last week that he would instead report back to the PM on the best way forward.

Mr Barnier was reported to have mocked the UK’s slipping deadlines in a meeting with EU ministers in Luxembourg, in which he noted that Mr Johnson had previously demanded agreement by the end of July.

“It is the third unilateral deadline that Johnson has imposed without agreement,” Barnier was said to have remarked. “We still have time.”

Sources said that Mr Barnier had described the negotiations as being in “a difficult phase”, adding that while the tone had become more constructive,  “movement on three key issues was still necessary”.

He reportedly told ministers that the UK was seeking to keep the issue of access to British fishing waters “on the table to the last moment to ensure it can command the highest price for it”, but was at the same time asking to remain part of the EU’s energy single market, which was worth “five times” as much as fish economically.

Mr Johnson is coming under increasing pressure from business to avoid a no-deal Brexit, which would mean the UK switching to World Trade Organisation rules from 1 January, including tariffs on a wide range of goods which would force up prices in the shops.

CBI deputy director-general Josh Hardie said: “More than three-quarters of businesses want a deal that will support people’s jobs and livelihoods amid these incredibly uncertain times. The best way to help preparations is to agree a deal in the coming weeks.”

The Republic of Ireland has framed its 2021 budget on the assumption of a no-deal Brexit reducing growth by 3 per cent, and foreign minister Simon Coveney today warned that “time is running out” for a deal, which must be reached by the end of October to allow time for ratification in European and national parliaments.

Germany’s Europe minister Michael Roth said that Britain needs to take “decisive steps” to address remaining issues.

He told reporters in Luxembourg: “I would like to emphasise again that the negotiations are now at a very, very critical stage and we are under very serious time pressure.

“We will see in the next few days whether a positive outcome can be achieved, or whether we have to intensify our preparations for a scenario without an agreement.

“And let me be very clear – and this is also a message to our British friends – no one should play down the risks of a no deal. This would be very bad news for everyone, for the EU and even more so for the United Kingdom.

“In the midst of the most serious economic downturn in decades, it would inflict our citizens yet another serious economic setback.

“The European Union continues to negotiate constructively and with full intensity to prevent this scenario. We have consistently worked in this direction on the basis of the political declaration that the UK and the EU agreed last year.

“It is now up to the UK to make the decisive steps in key areas – in particular in the level playing field, governance and fisheries.”

European Commission vice-president Maros Sefcovic played down the prospect of a breakthrough on Thursday, saying the summit would be “an important moment to take stock” of the trade negotiations.

“We continue to work for a deal, it’s very difficult but it’s still possible and our door will remain open until the last useful day,” he said.

The prime minister’s official spokesman said “time is in short supply” to reach a post-Brexit trade deal.

The spokesman said there was a need for “more urgency and realism” so that progress can be made on the “significant gaps” that remain in areas such as fisheries and the level playing field.

Asked about Mr Barnier’s suggestion that talks would continue in the coming weeks, the spokesman restated the UK’s desire for progress by the European Council summit on Thursday.

“There is a need for us to provide clarity in the middle of this month,” the spokesman said.

The spokesman said the PM had told cabinet colleagues on Tuesday morning that “there is still a deal to be done”.

But he indicated that Mr Johnson remains ready to take Britain to a no-deal Brexit, which the PM refers to as an “Australian-style outcome”, as Australia has no trade deal with the EU.

“The PM reiterated that, while we want a deal on the right terms, if we can’t get there we are ready and willing to move forward with an Australian-style outcome, which holds no fear,” said the spokesman.