Brexit negotiations are stuck on three critical issues and “further effort” is needed to break the deadlock, UK and European Union leaders have said.

Prime Minister Boris Johnson and European Commission President Ursula von der Leyen issued a joint statement following an hour-long discussion on Saturday.

They said that while “progress has been achieved in many areas… significant differences remain on three critical issues: level playing field, governance and fisheries”.

Boris Johnson spoke with Ursula von der Leyen by phone for over an hour
Image:
Boris Johnson spoke with Ursula von der Leyen by phone for over an hour

The level playing field refers to state subsidies and standards: the EU fears that Britain could become a low-regulation economic rival, cutting standards and heavily subsidising its industries.

In their statement, Mr Johnson and Ms von der Leyen said: “Both sides underlined that no agreement is feasible if these issues are not resolved.

“Whilst recognising the seriousness of these differences, we agreed that a further effort should be undertaken by our negotiating teams to assess whether they can be resolved.

“We are therefore instructing our chief negotiators to reconvene tomorrow in Brussels.

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“We will speak again on Monday evening.”

In a post on Twitter, the EU’s chief Brexit negotiator Michel Barnier said: “We will see if there is a way forward. Work continues tomorrow.”

Following the joint statement, Sky’s Europe correspondent Adam Parsons said: “We’ve had months of ever-more intensive talks, and very little progress.

“A breakthrough will depend on compromise. And that will mean Michel Barnier being told he can go beyond his long-established mandate.”

Ireland’s Prime Minister Micheal Martin said he welcomed that negotiators will resume their discussions in Brussels tomorrow.

“An agreement is in everyone’s best interests,” he tweeted.

“Every effort should be made to reach a deal.”

The negotiations on a potential trade deal between the UK and EU have gone down to the wire, with time for an agreement rapidly running out.

Ireland’s Prime Minister Micheal Martin said he welcomed that negotiators will resume their discussions in Brussels tomorrow.

“An agreement is in everyone’s best interests,” he tweeted.

“Every effort should be made to reach a deal.”

The negotiations on a potential trade deal between the UK and EU have gone down to the wire, with time for an agreement rapidly running out.

It comes after a week of intense negotiations in London, with late night sessions fuelled by deliveries of sandwiches and pizza.

Britain wants to “take back control” from Brussels and set its own economic policies.

The fishing industry is another obstacle – a small part of the European economy at large, but very important to nations such as France.

The EU wants to continue to fish in British waters, but Britain wants to control access and quotas.

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