Brexit Bulletin: Stuck in summertime

Follow Us Get the newsletter What's Happening? The fifth round of negotiations between Britain and the European Union ended with both sides saying an agreement is way off. A free-trade deal is unlikely unless the U.K. backs down on its demands, Michel Barnier, the EU's chief negotiator, warned as talks broke up Thursday. David Frost, his British counterpart, said that both sides have to face the possibility an agreement won't be reached. But behind the rhetoric there were indications that both sides are showing at least some willingness to compromise. As Ian Wishart reports here, progress is being made on some of the biggest obstacles to a deal: how it will be structured, what role the European Court of Justice will have in policing it, and just how far Britain will be required to apply the EU's state aid rules. Michel Barnier (C) in London on July 23 Photographer: JUSTIN TALLIS/AFP That still leaves two major bones of contention: what rights EU boats will have to fish in U.K. waters; and the level playing field, the restrictions the EU wants in place to ensure companies face fair competition from the U.K. On the former, the EU has already indicated that it's willing to compromise — but has little incentive to make a further concession on such a sensitive topic until later in the negotiations. Progress on the latter will likely require Britain to offer a concession of its own, something it is in no rush to provide just yet. You may have spotted the pattern. In Brexit, nobody blinks until the last minute, and we're not at that point yet. A July deadline mooted in recent weeks looked like an attempt by the U.K. to exert pressure on the EU; October is the real deadline. Member states will need the time after that to implement the deal before the transition period expires in December. Brexit is going down to the wire — but only after the summer vacation. — Edward Evans Beyond Brexit The pandemic divided workplaces. Here's how to fix them. The U.K.'s virus response has been world class, says Tyler Cowen. Here's what the world thinks of Johnson's "Global Britain." Don't get depressed over those Covid-19 antibody studies. Top scientists just ruled out best-case global warming scenarios. A gaming giant faces allegations of widespread sexual misconduct.  Click here for the latest maps and data on the spread of coronavirus. Sign up here for our daily coronavirus newsletter, and subscribe to our Covid-19 podcast. Want to keep up with Brexit? You can follow us @Brexit on Twitter, and listen to Bloomberg Westminster every weekday. It's live at midday on Bloomberg Radio and is available as a podcast too.  Share the Brexit Bulletin:  Colleagues, friends and family can sign up here.  For full EU coverage, try the Brussels Edition. For even more: Subscribe to Bloomberg All Access for our unmatched global news coverage and two in-depth daily newsletters, The Bloomberg Open and The Bloomberg Close.   Before it's here, it's on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can't find anywhere else. Learn more.   You received this message because you are subscribed to Bloomberg's Brexit Bulletin newsletter. Unsubscribe | Bloomberg.com | Contact Us Bloomberg L.P. 731 Lexington, New York, NY, 10022