May Still Aims to Leave Bloc Before EU Election: Brexit Update

(Bloomberg) -- European Union leaders met in Brussels to hash out the terms of an extension to Brexit day. The risk now for Theresa May is that a long deadline will provoke a backlash at home.

Read more: No-Deal Brexit Is Like Skydiving for This British MP, Just Easier

Time stamps are Brussels time.

Key Developments:

• EU leaders will debate new exit dates of December or next March. A few member states are leaning toward a shorter delay but don’t object to a long one, according to one EU diplomat
• May still aims to leave by May 22 to avoid EU elections
• France is pushing for conditions to make sure the U.K. can’t disrupt EU business; but officials say that may not be legally possible
• Leaders meet at 6 p.m. Expect a late night.

Varadkar Says Britain’s in a ’Bit of a Fix’ (5:04 p.m.)

Irish Prime Minister Leo Varadkar continued his campaign to give the U.K. some breathing space, suggesting the EU should show Theresa May “some flexibility by giving them a little bit more time.”

The problem is Britain has found itself in a “bit of a fix.” “They don’t want to vote for the deal at the moment — and they half don’t want to leave at all,” Varadkar told reporters.

Lithuania Says Date Less Important than Decision (5 p.m.)

Lithuanian President Dalia Grybauskaite said the EU will give the U.K. a longer extension than the one May has asked for.

"The date is not the priority. The most important task is for the U.K. to make a decision. We’ll be flexible to help them achieve this," she told reporters.

May Says She’s Still Aiming to Leave by May 22 (4:45 p.m.)

Theresa May told reporters she’s still working to leave the EU by May 22 so Britain won’t have to take part in European elections.

She didn’t comment on expectations that the EU will push her into a longer extension that the one she’s asked for, saying the important thing is to be able to leave as soon as the divorce deal is ratified.

"I know many people will be frustrated that the summit is taking place at all, I greatly regret the fact that Parliament has not been able to pass a deal," she said on her way into the gathering.

Germany Said to See Extension to Around Year-end (3:45 p.m.)

Germany’s position is that an extension should last until around the end of the year, but the exact date is less important than securing a consensus among the 27, according to a person familiar with the situation.

Merkel and Macron are due to meet before the summit. Macron has been pushing for a shorter delay, and tougher conditions.

May Not Making Real Compromise: Labour (2:30 p.m.)

Theresa May’s government isn’t showing any real evidence of compromising in Brexit talks with Labour, leader Jeremy Corbyn’s spokesman told reporters in London. Even so, he said some members of Cabinet are “clearly committed” to the process, and Labour isn’t backing away from the discussions.

Labour has shown it’s willing to compromise by supporting options in Parliament votes that run counter to its core position on Brexit, and has indicated to the government that it will move away from the party’s core position, the spokesman said. It’s now the government’s turn to move, he said.

Exchanges between the two negotiating teams are continuing today, with more discussions expected Thursday, the spokesman said.

Merkel Backs Extension of Several Months (2 p.m.)

German Chancellor Angela Merkel said she’d back an extension of “several months,” but wants it to be as short as possible.

“I will support -- and see if there’s broad majority for -- an extension of several months, but not far beyond that so that when the U.K. decides, an exit can proceed successfully,” she said.

“The extension should be as short as possible, but it should give us a certain amount of calm so that we don’t have to return to this issue every two weeks,” Merkel told lawmakers in the lower house of parliament.

May asked for a short delay until June 30, but European Council President Donald Tusk said that wouldn’t be long enough and is asking leaders to back an extension of up to a year.

Barclay Signals Openness to Long Extension (Earlier)

Brexit Secretary Steve Barclay signaled the U.K. is open to a long delay -- as long as it can leave the bloc earlier if it ratifies the divorce deal. He reiterated, though, that the option he and the prime minister want is a short delay to June 30.

“If there were to be an extension beyond that, then it has to be one that is terminable,” Barclay told BBC Radio. “The sooner we can get our exit the better.”

Barclay also said talks with the opposition Labour Party to find a compromise have been happening “at pace” and have been “ constructive,” but added that the process is “difficult” because “it’s contrary to the normal tradition of British politics to be operating in this way.”

Barclay said he’s not in favor of a post-Brexit customs union with the EU -- a key Labour demand -- because the government has negotiated “something better in the political declaration.’’ He said Labour, as much as the government, needs to compromise.

Earlier:

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