Brexit: Warm words but no trade deal as EU leaders shun Theresa May's summit plea

Brexit: Warm words but no trade deal as EU leaders shun Theresa May's summit plea

Brexit: Warm words but no trade deal as EU leaders shun Theresa May's summit plea

Updated 21 October 2017, 1:30 AEDT

EU leaders shun Theresa May's summit plea to negotiate a post-Brexit trade deal but give the British Prime Minister warm words and a gesture toward future talks.

EU leaders have shunned Theresa May's summit plea to negotiate a post-Brexit trade deal but sweetened the pill for the fragile British Prime Minister with warm words and a gesture toward future talks.

Key points:

  • Ms May again refused to confirm how much the UK would pay the EU upon leaving
  • Angela Merkel told reporters the "talks are moving forward step by step"
  • EU leaders ordered EU negotiators to start preparing for Brussels' needs in a transition period

Ms May asked the other 27 over dinner in Brussels on Thursday to help her quell calls in Britain for her to walk out of deadlocked talks on a divorce settlement by giving assurances they expect to get to a deal in the coming weeks.

They obliged with some long anticipated language in a formal statement.

But perhaps as important for the Conservative leader were markedly upbeat remarks from German Chancellor Angela Merkel and images of Ms May engaged in animated, friendly conversation with Ms Merkel and French President Emmanuel Macron.

With talks on the divorce package deadlocked mainly over a refusal by Ms May to detail how much she is willing to pay of the around 60 billion euros ($90.3 billion) that Brussels is demanding, she said again that a final figure would depend on what future relationship is negotiated.

She also urged the EU to move ahead and open talks on a post-Brexit free trade pact.

EU diplomats said some leaders present at the dinner understood that Ms May had gone somewhat further than she did in a keynote speech last month in Florence, while others believed she had stuck to an insistence that the EU's financial demands had "no legal framework" but that London would make a contribution.

Britain will 'honour its commitments'

Asked at a news conference whether she had improved her offer, which officials calculate as representing about 20 billion euros ($30.1 billion), Ms May said she had repeated what she said in Italy — namely that the other 27 countries would not lose out in the current EU budget plan and Britain would "honour its commitments".

EU officials said she would not disclose what those are.

She told reporters on Friday that she was "positive and optimistic" about getting a deal that would benefit both sides but added: "We still have some way to go."

Ms Merkel told a late-night news conference after the dinner: "In contrast to how it is portrayed in the British press, my impression is that these talks are moving forward step by step".

The German Chancellor said suggestions in Britain that talks should be broken off were "absurd".

"I have absolutely no doubts that if we are all focused … that we can get a good result," she said.

"From my side there are no indications at all that we won't succeed."

Leaders hold hope for deal at December summit

After Ms May left on Friday morning, the other 27 took less than two minutes to endorse a prepared statement that Britain had failed to make "sufficient progress" on offers to settle three key issues on a withdrawal treaty — namely rights for EU citizens in Britain, the new Irish border and the "Brexit bill".

However, the leaders held open the hope of reaching a deal at the next regular summit in December.

And in a move that could save weeks of delay, they ordered EU negotiators to start preparing for what Brussels will want in a transition period.

Maltese Prime Minister Joseph Muscat called Ms May's speech her "best performance yet" and "a warm, candid and sincere appeal," while Ireland's Leo Varadkar said it was "very strong".

But others complained they had heard little new of substance and rejected Ms May's repetition of London's view that demands for money from Brussels have "no legal framework".

Austrian Chancellor Christian Kern said "rhetorical progress" needed to be followed by "tangible conclusions".

Reuters