Barnier sets Wednesday as Brexit talks deadline - reports

The EU has set 9 December as its deadline for agreeing a Brexit trade agreement with both sides downbeat about the prospects for a deal, according to reports.

Michel Barnier, the EU's chief negotiator, told countries important points were unresolved before Boris Johnson's scheduled call with Ursula von der Leyen on Monday afternoon, the Financial Times reported.

Barnier said fishing rights and competition rules remained sticking points, dashing hopes of substantial progress over the weekend. He said talks were near an end and that Wednesday was the effective deadline before an EU summit starting the next day.

"The outcome is still uncertain," a diplomat told the FT after Barnier's briefing. "The EU is ready to go the extra mile … It is for the UK to choose between such a positive outcome or a no-deal outcome."

The UK said Prime Minister Boris Johnson did not accept Wednesday was a deadline. That was after the Conservative-supporting Sun newspaper said Johnson was ready to scrap talks "within hours" if the EU did not back down.

The apparent brinkmanship over the talks hit confidence in the pound, which fell more than 1% against the euro and the dollar.

Joshua Mahony, an analyst at IG, said:"Brexit worries are back in play today, with hopes of a breakthrough in talks fast vanishing. Tones from both sides of the channel have provided little reason for optimism as we enter a critical week of negotiations. Rumours that Boris Johnson may pull the UK out of talks entirely are likely a hardball tactic, yet the fact is that neither side has been willing to cede ground."

More than four years after Britain voted to leave the EU the two sides are at odds with the 31 December deadline for a trade deal looming. Without a deal Britain would do business with its biggest trading partner under tariffs and restrictions imposed by World Trade Organisation rules.

A UK spokesman said: "Time is obviously in very short supply and we’re in the final stages but we’re prepared to negotiate for as long as we have time available if we think an agreement is still possible."