Brussels says Brexit divorce bill could be even HIGHER

Brussels says Brexit divorce bill could be even HIGHER



The EU toughened its line on Brexit talks today ahead of a key summit - beefing up demands on immigration and the divorce bill.

Draft negotiating guidelines set to be agreed by the 27 member states at the weekend insist the UK must keep paying for at least a year after formally leaving the bloc in 2019.

They also say Britain must give all EU citizens permanent residency after they have lived here for five years.



The demands were apparently agreed by Eurocrats at a meeting with the EU's chief negotiator Michel Barnier this week.

The draft document is due to be endorsed at a summit in Brussels on Saturday - effectively setting 'red lines' for two years of tough negotiations.

The EU's language has notably toughened since the initial response from EU council president Donald Tusk, which came two days after Theresa May triggered the divorce process at the end of March.

The harsher approach comes as Mrs May prepares to hold talks with European Commission chief Jean-Claude Juncker and Mr Barnier in Downing Street tomorrow.



The EU has suggested that it could present the UK with a £50billion bill for leaving. But the section in the guidelines indicate that the figure could be even higher, including 'issues resulting from' the club's seven-year budget that runs up to 2020.

Previously it had been thought the UK would only be hit with costs up to withdrawal in 2019, and the new claim is likely to be unacceptable to Mrs May.

The draft makes clear the City of London will not necessarily be included in any future trade deal with the EU.

Instead the prized financial district must 'respect (the EU's) regulatory and supervisory regime and standards and their application' if it wants to do business in Europe.

The UK and the EU have both said they will prioritise protecting the rights of three million European citizens living in Britain, and one million Britons living in Europe.

But the latest draft insists EU citizens must have 'the right to acquire permanent residence after a continuous period of five years of legal residence' - a move that is likely to be opposed by London.