Brussels and London mull restarting Brexit talks - reports

Speculation is growing that London and Brussels are gearing up to resume stalled trade talks, despite prime minister Boris Johnson warning the UK to prepare for a no-deal Brexit.

On Friday, Johnson suspended negotiations and said there would be no further discussion unless the European Union adopted a “fundamental change of approach”. He added that the country should prepare for a no-deal scenario on 1 January 2021.

In response, European Commission president Ursula von der Leyen tweeted: “The EU continues to work for a deal, but not at any price. As planned, our negotiation team will go to London next week to intensify these negotiations.”

That was initially rebuffed, with the UK’s chief negotiator, David Frost, reportedly telling his Brussels counterpart Michel Barnier there was no need to come to London.

However, it is understood that Barnier and Frost have now agreed to speak later today over the telephone in a bid to restart the stalled talks, according to multiple media reports.

And Mairead McGuinness, EU financial services commissioner, reiterated on Tuesday the EU’s willingness to strike a deal. Speaking at an online conference, she said the EU remained “absolutely committed to reaching a deal, our door is open and will remain open until the very last minute”, Reuters reported.

She conceded that “time is short”, but said Barnier was ready to go to London “to intensify the work with David Frost and his team to develop the legal text”.

Kallum Pickering, senior economist at Berenberg, said: “In a best-case scenario, Barnier and Frost will be able to restart official negotiations soon. If their political masters soften their positions, that could enable the negotiators to make the compromises needed to strike a deal.”

Neil Wilson, chief market analyst at Markets.com, said: “The pound is steady despite threats of a no-deal exit from the transition period. Brexit no-deal commander-in-chief Michael Gove indicated that there is a wide gap between the sides. However, we know they are talking, and both the EU and UK want a deal.

“Barnier said the EU could compromise with Britain and begin detailed discussions around the legal texts this week. No one is walking away – it’s all part of the negotiations.”