Timetable clash

Just a week to go before Brexit talks resume and already the U.K. and European Union are at odds again over how soon they can start crafting a trade deal.

Adopting a provocative posture, Prime Minister Theresa May’s government is, in its own words, “stepping up pressure” on the EU to move on from discussing the terms of separation as soon as October.

The use of fighting words in the past has not budged Brussels and will not go down well now given that EU officials blame the U.K. for slow progress and a lack of clarity. Before agreeing to talk trade, the EU wants “sufficient progress” to be made addressing citizens’ rights, the Irish border and the Brexit bill.

Both sides had initially aimed for that milestone to be met in October. But Slovenian Prime Minister Miro Cerar told The Guardian that “the process will definitely take more time than we expected.”

“There are so many difficult topics on the table, difficult issues there, that one cannot expect all those issues will be solved according to the schedule made in the first place,” Cerar said. “What is important now is that the three basic issues are solved in reasonable time.”

Furthermore, Brexit Secretary David Davis revived a spat over whether the divorce and trade discussions should happen in parallel. The U.K. will try to speed up the process this week by publishing five position papers on topics ranging from data protection to resolving post-Brexit disputes.

Investors may also be growing worried that the talks are proving sticky, increasing the risk that the U.K. leaves the EU in March 2019 without a deal. The pound was the worst performing Group of 10 currency last week.

— Simon Kennedy

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