Brexit talks end with both sides warning a deal is far away

Talks between the U.K. and European Union over their future relationship ended in deadlock, with neither side appearing willing to make a significant compromise with just weeks remaining to reach a deal.

After a round of talks in London, Michel Barnier, the EU’s chief negotiator, told reporters on Thursday that “big differences” remain between the two sides. He added that the U.K. hasn’t shown willingness to break the deadlock.

“I don’t believe in brinkmanship in negotiations when they’re this complex,” Barnier said. “I don’t think we’ve got time for these games.”

The two sides won’t reach an outline agreement this month, David Frost, Britain’s Brexit negotiator, said in a statement. “Although we will continue energetically to seek an agreement with the EU, we must face the possibility that one will not be reached,” he said.

Officials on both sides had hoped this week would see significant progress after last month’s call between Prime Minister Boris Johnson and the EU’s leadership appeared to inject fresh impetus into negotiations. Barnier and his British opposite number have since met three times for informal talks—but they have been unable to remove the main stumbling blocks.

After five months of negotiations, the two sides are still in deadlock over the same issues, namely the right to fish in British waters, the “level playing field” rules to ensure fair competition between businesses and how to resolve disputes arising from the agreement.

Over the past month, Barnier has signaled where the EU is willing to compromise—but European officials have expressed frustration that the U.K. hasn’t done the same. British officials say they are holding out for more because in many areas, such as fishing, European countries would be left worse off in the event no deal is reached.

If the two sides fail to reach an agreement, tariffs and quotas will be re-imposed when the U.K. parts ways with the bloc at the end of the year. While the U.K. has been pressing for an agreement by the summer, the EU has considered the deadline to be the summit of EU leaders in October. Any deal would then go to all the EU governments for ratification.

Fishing, in particular, remains a key stumbling block to a deal, with little progress being made on how stocks will be shared between the two sides.

But in a sign of some progress, Frost said he welcomed the EU’s concession on the role of the European Court of Justice, and said that he heard the bloc’s concerns about governance. While Britain wants to strike a free trade agreement and leave other issues to a series of mini deals, the EU is pushing for a single, over-arching single agreement.

Barnier and Frost will hold informal talks next week before a formal round of negotiations start on Aug. 17.