Von Der Leyen Warns Deal on Fish May Be Elusive: Brexit Update

(Bloomberg) -- U.K. and European Union negotiators are inching toward a trade deal as talks in Brussels continue around the clock. European Commission President Ursula von der Leyen said a deal is possible but that it will be difficult. “As things stand, I can’t tell you if there will be a deal or not,” she said.

Optimism has grown after the two sides agreed to continue discussions past their self-imposed Sunday deadline and the EU’s chief negotiator Michel Barnier said he saw a “narrow path” to a deal this week if differences can be bridged.

Read More: A Brexit Vote on Christmas Day? The Dash to Ratify Any Agreement

Key Developments:

(All times are U.K.)

Progress on Level Playing Field (8:39 a.m)

European Commission President Ursula von der Leyen was more upbeat on the state of the talks away from the question of fisheries, saying the two sides had found “a way forward on most issues.”

She outlined what had been agreed on the other major sticking point, that of the playing field for fair competition, which for months has looked like it could scupper a deal.

“On state aid we have made progress on common principles, guarantees of domestic enforcement and the possibility to autonomously remedy the situation where needed,” she said.

“On standards we have agreed a strong mechanism of non-regression -- that’s a big step forward -- and this is to ensure our common high labor, social and environmental standards will not be undercut,” she said. “Of course difficulties remain on how to really future-proof fair competition.”

And she said issues around how to enforce the overall deal were now “largely being resolved.”

Fisheries May Not Be Resolved, von der Leyen Says (8:32 a.m.)

European Commission President Ursula von der Leyen told the European Parliament that an intrinsic aspect of the negotiations may not be agreed on. That would almost certainly mean no overall trade deal.

“On fisheries the discussion is still very difficult,” she said. “In all honesty it sometimes feels that we will not be able to resolve this question.”

She said fishing rights in U.K. waters and the level playing field for competition were the last big remaining issues, and there had been progress on the latter.

“There is a path to an agreement now,” she said. “The path may be very narrow, but it is there and it is our responsibility to continue trying.”

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