Ok, another crunch week (one of many). Here are my latest thoughts on the state of play.

The big issues now are: how long can the talks go on, what impact will the upcoming Finance Bill have, and will an averted Covid rebellion free Boris Johnson's hand in going for a deal.
1/ If there are new clauses in the Fin Bill which override the NI Protocol + it lands the week when both sides conclude a deal it would put Michel Barnier in a ludicrously difficult position: ie, concluding an agreement with a partner which has twice breached the previous deal
2/ A senior EU diplomat said: "It would make sense for the Commission not to conclude until they've seen the Finance Bill, given the experience we've had with the Internal Market Bill."
3/ The diplomat said a Bill with more clauses breaching the Protocol would short circuit the entire talks process and go down very badly. While the European Commission will want to show they can conclude a deal, an offensive Finance Bill "will not fly in the Council [MS] or EP"
4/ All that assumes a deal can be done + signs are that it may not be possible this week, not least because Johnson is consumed with Covid Tiers + backbench revolts. One theory: with the Tiers vote out of the way the path might be clearer for Johnson to relax his position on LPF
5/ Both sides appear to be some distance apart on LPF, especially the non-regression/evolution clauses, despite briefing from the UK over the weekend that it was now all about fish
6/ Diplomats believe that for London to frame the talks as only about fisheries, then it creates the useful narrative for the UK that the EU is entirely unreasonable in bringing down the talks just because they want to "keep our fish"
7/ Indeed, Michel Barnier and member states had hoped to avoid a situation where fisheries was the last bowling pin standing. As per 10 days ago large parts of the legal text were closed...
8/ ...but things like energy, road haulage and rules of origin were kept open (as well as fish, LPF, governance) to ensure that Barnier's team could link these issues (ie, you want access to our energy market, but deny us access to your fishing grounds)
9/ Even if Boris Johnson does decide he wants to compromise, would it be a swift acceptance of LPF and a suboptimal deal on fisheries? It seems unlikely, as that would seem like surrender. So the talks may go on for some time
10/ The Finance Bill has to appear soon so it may well be that it could come ahead of a Free Trade Agreement breakthrough. If there are new clauses breaching the NI Protocol then that's a problem.
11/ But there is already a choreography of sorts around the Internal Market Bill. Both sides have been working thru the issues that the UK wants movement on and that indirectly relate to the IMB (supermkt food consignments GB-NI, the EU presence in NI, exit summary declarations)
12/ If the Finance Bill gives ministers the powers to override the Protocol provisions on NI remaining in the EU VAT system for goods, or to unilaterally decide what GB-NI goods are at risk of crossing the border and thereby attracting a tariff, then that spells trouble
13/ Again, these are issues being dealt with by the Joint Committee. I'm told that while there are still technical challenges, there are currently no political stand-offs between EU and UK over the most sensitive parts of the NI Protocol
14/ So it may well be that the Finance Bill does not needlessly contain more "offensive" provisions. If it does, then there's an agenda there that may be linked to a No Deal scenario. It's hard to say...
15/ Either way, while separate, the Joint Committee's work is profoundly linked to an FTA deal. Of course, the Protocol comes into effect on January 1 whether there's an FTA or not, but issues like "goods at risk" and state aid rules will be simpler if there is an FTA

ENDS

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More from @tconnellyRTE

2 Dec
Some new developments on the Brexit fish negotiations, which have proven so difficult:
1/ The focus now is not on the quota share but on access. On quota share, the EU is offering 15-18pc of the value of what EU fleets catch in UK waters, while the UK wants 80pc. That has been parked and there's big scrap on that to come.
2/ All the effort in the past few days has been on the question of access. The UK is demanding more abolute "control" over British waters by having the power to deny EU boats access on an annual basis when it comes to individual species.
Read 14 tweets
27 Nov
New: EU and UK officials are expressing confidence that an overarching agreement on the outstanding issues of the Northern Ireland Protocol can be agreed in the coming weeks.
2/ Sources say that officials are making progress on all the key obstacles that have held up the full implementation of the Protocol in recent months.
3/ The Protocol is due to enter into force on January 1, when Northern Ireland remains within the EU’s single market for goods and the rest of the UK formally leaves the European Union.
Read 14 tweets
27 Nov
Quick update on @MichelBarnier's briefing to EU ambassadors this morning at 0830 on Brexit state of play. The same sticking points are there: LPF, fisheries, governance, but a lot of work is being done. "They're still talking, which is good," acc to one diplomat
2/ Diplomat adds: "They are working hard. It's positive that they are talking. They are seriously engaged, but the political decisions have not yet been taken in the UK."

Barnier did not speculate about when a deal might be reached. Acc to source he was keeping his cards close
3/ "The calendar is in everybody's minds: it's five weeks to go. But he didn't speculate."

Mr Barnier will travel to London tonight to resume face to face talks over the weekend.
Read 4 tweets
25 Nov
How significant were @vonderleyen's remarks to the European Parliament this morning?

One senior EU diplomat says takes note in particular of her opening words. "Frankly, I cannot tell you today if in the end there will be a deal."
2/ That this sentiment is being expressed by the European Commission President on Nov 25 with just over a month to Jan 1, is significant. In Brussels there are only two questions: will there be enough time to ratify any deal? Is @BorisJohnson prepared to take a big political step
3/ Yes, it takes two to tango, etc. But it's clear from Von der Leyen's comments that the EU is going to stand firm on the level playing field issue.
Read 21 tweets
25 Nov
Commission president @vonderleyen tells the European Parliament that three big issues remain in the Brexit negotiations: level playing field, governance, fisheries. These issues “can make the difference between a deal and No Deal”
2/ “We are ready to be creative but we are not ready to put into question the integrity of the single market, the main safeguard of European prosperity and wealth
3/ “That is why we need to establish robust mechanisms ensuring that competition is free and fair over time”
Read 9 tweets
20 Nov
New: Member states have been told by the European Commission that 95pc of the EU-UK future relationship treaty has been completed, but that wide gaps remain on the three key issues of the level playing field, governance and fisheries
2/ This came during a briefing of EU ambassadors this morning by the sec gen of the European Commission Ilze Juhansone, standing in for Michel Barnier
3/ Although 95pc complete, there are square brackets in key areas of the text, meaning bits that remain open and that are linked to an overall deal. These are in the field of energy, road haulage, aviation, rules of origin
Read 14 tweets

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