EU chief negotiator, Michel Barnier, has suggested that Brexit talks will not make any progress unless the UK agrees to honour all its financial commitments.
Barnier has said the UK has yet to decide on what they owe the bloc when it leaves in March 2018.
Brexit Secretary David Davis said on Thursday: “It’s positive that Theresa May’s speech made it possible to unblock the situation to some extent and give a new dynamic,”
“But we are far from the stage, and it will take weeks or maybe even months, where we will be able to say yes there has been sufficient progress on the principles for the orderly withdrawal,” said Davis, speaking in Brussels.
Also speaking in Brussels, Barnier said: “The UK explained also that it was not in a position yet to identify its commitments taken during membership. For the EU, the only way to reach sufficient progress is that all commitments taken at 28 [member states] are honoured at 28.
“We have had a constructive week, yes, but we are not yet there in terms of achieving sufficient progress. Further work is needed in coming weeks and coming months.”
Following Barnier commenting on the “constructive week”, the pound climbed to the day’s high against the weakening dollar.
Neil Jones, Mizuho’s head of hedge fund FX sales, said: “Sterling (is rallying) on the ”considerable progress“ comments regarding Brexit talks,”
Speaking in Florence earlier this week, Theresa May said Britain would respect the financial commitments and pay into the EU budget for two years after leaving.
“We both want to get this done as swiftly as possible and it is up to leaders to set the tone – one of friendship and cooperation. If we get the spirit right we will find we are able to resolve the issue where we disagree respectfully and quickly.”