BRUSSELS (BELGIUM) – Britain and the EU are closer to agreeing on equal social security rights for their citizens after Brexit, according to two diplomatic sources.
The European Union diplomats said Brussels was now getting prepared for negotiations until as late as mid-November to evade a damaging “no-deal” scenario.
“We seem to be getting closer and closer to a deal, even though the no-deal rhetoric in public might suggest the opposite,” said one of the two sources, who were explained to by the executive European Commission.
Sterling cut losses vs the euro on Tuesday after the report, holding near to $1.30.
At stake is an estimated trillion euros worth of bilateral trade. Investors and businesses are increasingly anxious about a split with no agreement to ensure the continuation of trade without tariffs or quotas.
A senior EU official dealing with Brexit said the talks were “in a decisive period” and “not far away from the endgame”.
“I still hope and think that we can find an agreement,” the person said.
A deputy head at the Commission said separately on Tuesday the EU was aiming to strike a deal with Britain. However, time for the same was running out and it was under threat of failing to get one by the end of the year.
Prime Minister Boris Johnson’s spokesman also said on Tuesday Britain needed to be told about by October 15 if a deal would be struck because businesses need to prepare.
The 27 national leaders are due to assess progress when they meet in Brussels on Oct.15-16. If they decide a deal is in the making, they would authorise a final stretch of extremely secretive, make-or-break negotiations known as the “tunnel”.
Brussels insisted that it will not implement any new deal without Britain goes back on proposed new domestic legislation that might breach London’s earlier divorce settlement with the EU.
A UK official said on EU sources’ assessment, “A deal is possible but not certain… We remain fully committed to seeking to reach an agreement by 15 October.”
The two EU diplomats, speaking on condition of anonymity, said Britain had agreed to proposals on nine out of 10 areas of protecting social security rights for people moving between EU member states and the United Kingdom.
These proposals included benefits for accidents at work and death grants, they said.
These protections could be critical for as many as 5 million people. However, there was no agreement on family benefits.