Brexit: Angela Merkel urges both sides to keep negotiating

Brexit: Angela Merkel urges both sides to keep negotiating”

"And so with high hearts and complete confidence we will prepare to embrace the alternative", Johnson said.

With businesses and markets increasingly jittery as the deadline nears, European Union leaders demanded Britain "make the necessary moves to make an agreement possible" and made a decision to step up contingency preparations for an abrupt split.

EU chief Ursula von der Leyen said on Friday European negotiators will be in London next week to pursue post-Brexit talks.

Following a phone call with European Commission president Ursual von der Leyen and European Council president Charles Michel on Wednesday, No.10 said Mr Johnson would wait for the outcome of the summit and "reflect before setting out the UK's next steps".

"There was accordingly no basis for negotiations in London as of Monday".

"There is only any point in Michel Barnier coming to London next week if he is prepared to discuss all of the issues on the basis of legal texts in an accelerated way, without the United Kingdom being required to make all of the moves".

"He didn't say they will leave the negotiating table".

"But for whatever reason it is clear from the summit that after (more than) 45 years of membership they are not willing - unless there is some fundamental change of approach - to offer this country the same terms as Canada", he said.

Among the many disagreements between London and Brussels are questions over the EU's access to the U.K.'s fishing waters and refusals by Johnson to adhere to EU's rules on providing state aid.

Business leaders are already anxious about the prospect of a no deal, warning it would have a "devastating impact" on jobs across the board.

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"Businesses have been battling coronavirus at the same time as investing heavily in decarbonisation, all while preparing as best they can for a seismic change in trading conditions come year end", Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said in a statement.

"In the event of a no-deal Brexit, shoppers will, literally, pay a heavy price", with stiff tariffs compounded by border delays, he said.

Barnier said the talks could go on until the end of October, the rough date set by the European Union side in order to leave enough parliamentary time to ratify the deal before the Brexit transition expires on December 31.

While gaps have narrowed, both sides are struggling to find common ground on fisheries, fair competition and governance.

While Australia does not have a free trade agreement in place with Brussels, it does have a series of agreements on trade and other areas.

"They want the continued ability to control our legislative freedom, our fisheries, in a way that is obviously unacceptable to an independent country", he said.

But Lord Frost, the Prime Minister's Brexit envoy, said he was disappointed with the bloc's recent announcement. The EU and Canada do about 55 billion euros (NZ$97 billion) worth of trade a year, compared to 500 billion euros (NZ$886 billion) between the United Kingdom and the bloc.

German Chancellor Angela Merkel, Europe's most powerful leader, said after the summit that compromise would be needed for a deal.

He added: "We can not have to make all the compromises on Brexit". Mr Barnier told a news conference: "We're available, we shall remain available until the last possible day".

The EU says a deal must come in early November at the latest to allow time for ratification by its parliament and some national chambers.

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