Chief negotiator makes shock admission that the bloc could crumble if Britain resists payment
Michael Barnier, EU's chief Brexit negotiator, issued warning about fragile bloc
Analysts say settlement has ballooned to around 100bn euros (£85bn)
EU's latest demands were rejected by Brexit Secretary David Davis
THE EU'S TIMETABLE FOR BREXIT TALKS
JUNE: Detailed Brexit talks get under way after the general election.
The first phase will cover the 'principles' of the financial settlement, the status of expats living on the continent and in the UK, and the future border between Northern Ireland and the Republic.
OCTOBER-NOVEMBER: EU takes a decision on whether enough progress has been made to move on to the next phase of talks.
NOVEMBER TO OCTOBER 2018: Discussions on future trade arrangements.
OCTOBER 2018-MARCH 2019: Potential votes at the European Parliament and Westminster to ratify agreement.
END MARCH 2019: UK formally leaves the EU.
BRUSSELS BREXIT RULES DEMAND RIGHTS FOR LIFE FOR ANY EU NATIONALS WHO MOVE HERE UNTIL MARCH 2019
EU citizens who are in Britain on the date of Brexit in 2019 must keep all of the same rights for life, Brussels bureaucrats have claimed today.
An EU factsheet said these rights should still be enforceable in the EU's court, even after Brexit is finished. There are currently 3.2million EU nationals in Britain.
The EU Commission has agreed a 'directive' that sets out the rules for the two years of Brexit talks.
The document follows the unanimous agreement by EU leaders of negotiating guidelines that represent a hard-line opening gambit on Brexit.
It means the EU will demand all EU citizens in Britain get lifetime guarantees on rights to in-work benefits, unemployment benefits, pensions and other benefits.
It also seeks guarantees they would be able to marry a citizen of a third country and stay here with them.
An EU citizen who has worked in the UK for ten years will also be able to claim unemployment benefit to find another job elsewhere in Europe.
They currently get these rights by virtue of Britain's EU membership. Britons on the continent have similar access in their host countries.
British politicians had hoped to effectively backdate the accrual of lifetime right to either the referendum in June 2016 or the triggering of Article 50 in March 2017.
Striking an agreement on citizens rights - and on the Brexit Bill and the Irish border - is a requirement of beginning talks on the future trade deal.
The directive also makes clear that the EU will try to force the UK to accept that the European Court of Justice will decide on disputed between the sides - a prospect that Mrs May has rejected.
The divorce bill is described as an 'essential element of the negotiations on the orderly separation', with a promise that it will be based on 'objective and verifiable data'.
However, it indicates that the sum will not factor in billions of pounds of assets held by the EU, such as buildings.
Theresa May reacted with fury to a week of poisonous briefings by Brussels officials, accusing them of trying to interfere in the general election and undermine Brexit negotiations
The EU's latest demands were rejected by Brexit Secretary David Davis. He also dismissed threats from Brussels to use the issue to block a trade deal, insisting Britain will not pay a penny if talks collapse
THE BREXIT BILL
What Brussels wants: A claimed 100billion euro Brexit 'divorce bill'.
Analysis: In public, Mr Barnier claimed the demands were 'not a punishment, nor an exit tax'. But in an anonymous briefing to the Remain-supporting Financial Times, Brussels doubled its 50billion estimate. Mr Barnier said Britain must agree to pay for long-term programmes, relocating EU agencies from London and parts of the EU-Turkey refugee deal. Officials ruled out the UK getting credit for its share of the EU's 800billion euros of collective assets. Our government will honour its commitments, but will not pay anything like the sums demanded.
EU JUDGES
What Brussels wants: Huge powers for the unelected European Court of Justice (ECJ).
Analysis: The EU says the judges in Luxembourg should retain huge influence over the UK. The court should also have power to rule over cases before we leave, over UK 'state aid' support for industry, and rights of EU nationals living here. Significantly, it should 'adjudicate' in disputes over terms of the deal – particularly money. Mrs May is determined to end ECJ influence.
EU MIGRANTS/UK EXPATS
What Brussels wants: Blanket rights for EU nationals in the UK to bring in family.
Analysis: Like Mrs May, the EU wants an early deal on rights of the three million EU nationals in the UK and 1.2million British expats on the continent. Brussels demands any EU national who arrives before Brexit – even if they have been here a day – has the right to remain after five years' residency. They should also have the right to bring in relatives who would receive similar protections. While some of the EU's demands will be difficult to swallow, the government will compromise – but only if British nationals on the continent are fully protected.
POST-BREXIT TRADE DEAL
What Brussels says: Nothing.
Analysis: On the first page of its negotiating position, the EU makes clear it is addressing the UK's 'orderly withdrawal' and not future arrangements. Mr Barnier says we must secure a framework deal on money, EU migrants and the ECJ before a trade deal. Mrs May wants to discuss the issues at the same time. Yesterday she repeated her mantra 'no deal is better than a bad deal'. If trade is not on the table, Mrs May will have to walk away
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