Brexit talks will FAIL: EU making plans for NO DEAL because of ‘British loss of reality’

Angela Merkel’s allies have blasted the UK Brexit team, accusing David Davis of trying to call Brussels’ bluff and “pick the raisins from the cake”.

In a furious editorial news magazine Spiegel said: “The British still do not understand the position of the 27 member states.

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“The European Parliament is already making arrangements for a failure of the negotiations.”

Christian-Democrat EPP Group in the European Parliament said: “The British still seem to think that this is a bluff.”

The main focus is on the fight for the four fundamental freedoms – the free movement of goods, money, services and people.

Spiegel continued: “If the British did not want immigrants from the EU after Brexit, they would also lose access to the internal market.

“They won’t let the British pick the raisins from the cake. But London is always trying to do just that.”

Elmar Brok, a foreign policy expert with Angela Merkel’s CDU party, puts the risk of Britain crashing out of the EU without a deal as high as 50 per cent. 

Spiegel said: “This would be an economic disaster, particularly for the UK.”

But concrete preparations for a worse case scenario are already underway in the EU parliament.

For example, the EPP, with the support of other groups, has applied for a change in CO2 emissions trading, due to the “increasing risk” that the negotiations with London are failing.

British companies should therefore not be able to redeem emissions trading certificates that they have received free of charge after Brexit. 

Peter Liese, EPP Group spokesman for Environmental policy, said: ”In London there were unrealistic notions about a possible deal.

“That is why we are also preparing for a hard Brexit.”

The EU Commission believes the next two months will be decisive.

The next round of negotiations with the British will begin on around September 21, after Britain asked for a postponement of one week on the next phase.

In October, EU chief negotiator Michel Barnier was supposed to establish “sufficient progress” in the first phase of negotiations in order to begin discussions on future relations.

But that seems increasingly unlikely.

Mr Brok said: ”I don’t see how the October deadline can be met. 

The liberal Guy Verhofstadt, Brexit negotiator of the European Parliament, also said on yesterday “no progress has been made”.

There is still little progress on the three issues to be clarified in phase one. He says the British government has not yet submitted a specific proposal on its financial obligations.

In Brussels, it is estimated that after the withdrawal between 40 and 100 billion euros must be paid by the UK in order to meet already entered into agreements.

The British proposals on the future of Ireland and Northern Ireland have already been rejected by Mr Barnier as insufficient.

Even London’s ideas on immigration and the future rights of EU citizens in the UK and the British in the EU are not satisfactory to the rest of the EU.

Lastly, an internal paper by the British Home Office, according to which the British government wants to restrict immigration of EU citizens directly after Brexit, caused trouble.

Mr Brok said: “That would dramatically increase mistrust should it reflect government policy.”