Brexit LIVE: EU budget talks conclude with leaders to spend billions on COVID-19 relief – Daily Express

The EU Commission has agreed to undertake mass borrowing for the first time in a landmark recovery deal. The talks, lastingover 90 hours and stretching over five days, saw tensions flaring and emotions run high between the blocs leaders. Charles Michel, the European Council president announced that the deal had been reached on Twitter at 5:30am in Brussels. French President Emmanuel Macron hailed the news, and called the agreement a historic day for Europe. THIS BLOG IS NOW CLOSED. Click HERE for today's latest Brexit updates

The recovery deal is centred on a 390 billion programme of grants to financially weakened member states.

The COVID-19 recovery plan also contains 360 billion in loans, and is attatched to a1.074 trillion seven-year budget, bringing the totalfinancial package to anabsurdly high 1.82 trillion.

The talks saw EU leaders struggle through negotiations partially due to the "frugal" members, those beingAustria, Denmark, the Netherlands and Sweden,resistingthe idea of permitting the bloc to borrow money and hand it out as budgetary expenditure for member states.

In response to those nations concerns over grants to financially weak members, they were offered rebates, withAustrias annual reduction being doubled to 565 million a year, and the Netherlands rebates set to rise to 1.92 billion from 1.57 billion.

The budget talks were just hours shy of breaking the record for the longest ever EU leaders meeting, which remains the 2000 Nice summit.

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6:04am update: EU leaders reach unprecedented 1.82 trillion budget deal

After five days of bitter negotiations, EU leaders have agreed on their new seven-year budget.

The 1.82 trillion deal includes 750 billion for coronavirus relief measures, including 390 billion in grants and 360 billion in loans for financially weakened countries.

European Council President Charles Michel announced news of the agreement on Twitter, with a one-word post saying Deal!

4:42am update: EU emergency budget talks conclude with a deal

The EU has agreed to terms for a seven year budget, plus funds for coronavirus relief

4:40am update: Day 5 of EU budget talks near conclusion, green policy to be slashed

A final negotiating document on an emergency budget has been shared with EU delegates, according to POLITICO.

The budget sees a reduction in the Just Transition Fund, designed to help EU countries move to cleaner energy, by a huge 20 billion.

3:30am update: Report on Russian interference in UK releases today

The Russia report from the UK parliaments intelligence and security committee is set to be released today.

Its release comes nine months after Prime Minister Boris Johnson blocked its publication ahead of the 2019 general election.

Publication of the document comes after the committee rejected Mr Johnsons choice of former minister Chris Grayling as the new chairman.

Members voted by five to four to support the veteran Conservative Julian Lewis instead.

12:00am update:Belgian socialists warn of new election if no coalition formed

Paul Magnette, leader of Belgiums Socialist Party, has warned the country could face another election if a coalition government is not formed in the next 50 days.

After the King tasked him with looking for a possible coalition, Mr Magnette said: We have about 50 days to find a solution, failing which we will have to call a new election.

Currently the country is governed by Sophie Wilms, who was given emergency powers for six months due to the coronavirus pandemic.

Ms Wilms, leader of the Reformist Movement party, took over as caretaker Prime Minister due toBelgium'sinconclusive 2019election results.

Dylan Donnelly takes over from Richard Percival

9:30pm update:MPs defeat Tory backbench attempt to guarantee parliamentary approval of post-Brexittrade agreements

Ministers resisted a Tory backbench attempt to give Parliament a definitive say on post-Brexit trade deals as flagship legislation appeared in the Commons this evening.

Concerns were raised that politicians in Westminster would be unable to prevent the Government reneging on commitments to protect the NHS and maintain animal welfare and food standards under the current terms of the Trade Bill.

But the Government stressed UK law offers such protections and any changes would have to come before Parliament.

They rejected new clause four by 263 votes to 326, majority 63.

8pm update: US gets involved in Brexit talks

US Secretary of State Mike Pompeo arrived in the United Kingdom on Monday to discuss China, 5G and a Brexitfree trade deal with Prime Minister Boris Johnson.

Pompeo, who did not speak to reporters on the plane, was due to be greeted by US Ambassador Woody Johnson shortly after landing.

The US State Department said ahead of his visit: "While in London, Secretary Pompeo will meet with Prime Minister Boris Johnson and Foreign Secretary Dominic Raab to discuss global priorities, including the COVID-19 economic recovery plans, issues related to the Peoples Republic of China (PRC) and Hong Kong, and the US-UK Free Trade Agreement negotiations."

6.30pm update: Sterling reaches highest rate against Euro

The Pound recovered from an early-morning 20-day low against the stronger euro, but investors remained bearish as Britain's bleak economic outlook andBrexitrisks weighed on the currency.

Against the Euro, the pound was at 90.375 pence per Euro, similar levels to last Monday's close

With a new round ofBrexitnegotiations between Britain and the EU beginning on Tuesday, hopes for a trade deal in time for the year-end expiry of the transition period following Britain's departure from the bloc are fading fast.

Kaspar Hense, a portfolio manager at Bluebay Asset Management, said: "There will be a deal but it will be a hardBrexit, probably worse than a Canada deal."

5.30pm update: Scottish Secretary urges united approach on UK internal market after Brexit

Different regulations on goods between Scotland and the rest of the UK will cost consumers, the Scottish Secretary has warned.

Alister Jack has urged the Scottish Government to work with the UK Government on the establishment of the new internal market.

In the past week, a row has developed between Holyrood and Westminster over what the Scottish Government has called a "power grab" using the new Internal Market Bill.

Mr Jack said: "For me, it's fantastic these powers will no longer be exercised in Brussels.

"But it brings a risk that different standards, rules and regulations set in Scotland, England, Wales and Northern Ireland could emerge, creating barriers to trade and extra costs for business and consumers.

"That's in no-one's interests."

4.30pm update:Brexitwill split financial markets says Bank of England

Brexit will make markets less efficient but it won't be disastrous for the UK economy, an appointee to the Bank of England's Financial Policy Committee has said.

Jonathan Hall, told a confirmation hearing in Parliament's Treasury Select Committee this afternoon: "It will cause fragmentation, it will cause inefficiency, there will be problems with regulation, but it's not going to be disastrous... for the economy."

3:30pm update: Concerns on Government commitment to a Green Brexit

Environmentalists have raised concerns that the Government is "watering down" its appetite for a greenBrexitand recovery from the coronavirus pandemic.

Environment Secretary George Eustice used a speech to environmental groups this afternoon to insist that the approach to green regulation after the UK quits the EU system will help boost nature.

During the speech, he also stressed that Prime Minister Boris Johnson and the Government want to see a green recovery for the UK as it emerges from the COVID-19 crisis.

But RSPB chief executive Beccy Speight, who was also speaking at the online conference organised by think-tank Green Alliance, voiced the concerns of many in the sector over the gap between the Government's rhetoric and action on the environment.

She said: "We're seeing patterns that show a kind of watering down around the appetite for a greenBrexit, a watering down of the appetite of a green economic recovery."

Ms Speight stressed that we "would want to see more ambition, more heart and certainly more investment in nature" in order to deliver a real, green recovery, warning that what has been announced for nature so far "did not touch the sides" of what is needed.

1.37pm update: 'We will not give up our rights as an independent state' - Downing Street

Britain will continue to engage "constructively" with the EU on a post-Brexit trade deal, but is refusing to give up its rights as an independent state, a spokesman for Boris Johnson has warned.

The spokesman told reporters: "Our position on our sovereignty, laws and fisheries is clear, we will not give up our rights as an independent state.

"We will continue to engage constructively with the EU on these key issues and will work hard to reach the broad outline of an agreement, but as we have been clear all along we are not asking for a special, bespoke or unique deal."

Both sides will resume talks on Tuesday after the UK's chief negotiator David Frost hosts EU counterpart for dinner on Monday evening.

12.39pm update:EU told to do Brexit deal in bid to avoid global unemployment spike like Great Depression

Liam Fox has warned of a possible spike in global unemployment higher than anything since the Great Depression.

During an interview with Sky News, Dr Fox urged the UK and European Union to agree a good open trading relationship post-Brexit.

The former International Trade Secretary stated that a deal between Britain and the EU would give a boost of confidence to the global trading system when it is desperate need of a positive signal.

Mr Fox said: "We want to see Brexit done, I still hope we will see a good open trading relationship between Britain and the European Union.

"I think that now goes beyond the bilateral relationship.

"It is obviously good for Britain and our European partners to have open liberal trade between us.

"I think now the global trading system is slowing down because of COVID, we have the COVID emergency on top of that.

"We may well be seeing problems with global unemployment, a spike higher than we have seen since the Great Depression.

"It is very important that all countries understand that they need to do even more to keep trade moving.

"I think a good agreement between Britain and the EU would give a boost of confidence to the global trading system at a time when it very much needs one."

11.51am update: Liam Fox exposes key 'incentive' for EU to agree quick trade deal

Brexit negotiations could benefit from a new "incentive" the coronavirus pandemic has exposed, according to former International Trade Secretary Dr Liam Fox.

The UK and EU have been struggling to find common ground to secure a final trade agreement as both sides remain firm over their red lines.

But according to former International Trade Secretary Dr Liam Fox the coronavirus pandemic has exposed a new "incentive" that could push Brussels into a deal.

Speaking to Times Radio, he said: "I think there is an added incentive now for Britain and the EU to come to a good trade agreement.

"Weve got not only a slowing down of the system but weve got the emergence of COVID.

"Weve probably got an incipient global financial crisis on our hands, or certainly an economic crisis.

"The world lacks one thing at the moment and that is confidence. If we can manage to come to a good trade agreement with the European Union I think that will give a good boost to the international system."

10.55am update:Three quarters of UK hauliers could be shut out of EU if no trade deal agreed

Up to three quarters of British hauliers could be shut out of the EU if a post-Brexit trade deal is not agreed, triggering new fears over shortages of food and other goods.

The Freight Transport Association (FTA) warned permits would be made available for only 2,088 businesses from January - significantly down from the 8,348 that were registered for journeys last year.

The trade group warned companies are already under financial pressure because of the coronavirus crisis, and need a resolution within weeks as it prepares for its "Christmas peak".

The FTA's European policy manager Sarah Laouadi said: If you learn whether you have the right to continue operating as a company on Dec 28 and the only fallback plan is the ECMT system, which requires applications and allocations for permits, it will be too late."

10.38am update: Brexit talks could COLLAPSE as stubborn EU digs in heels - UK told to cave over fishing

Brexit talks are in danger of completely collapsing and a no deal scenario becoming increasingly probable, with EU member states digging their heels in on fishing and the level playing field - the UK's red lines.

The UK and EU are resuming talks on a post-Brexit trade deal in London today as the two sides desperately try to thrash out an agreement and overcome a number of hurdles.

Negotiations began in March but following several rounds of talks, both sides have lamented the lack of progress and significant differences that still exist.

This means Britain's future relationship with the bloc remains undecided - more than four years after the UK voted to leave the EU in a historic referendum.

Now allies of Boris Johnson say he believes Brexit talks could completely collapse over the next few weeks as EU member states take an increasingly tough stance against British demands.

Those close to the Prime Minister have warned he is prepared for leaders of the EU27 pulling out next month because of what one source described to The Times as a chasm between the sides.

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Brexit LIVE: EU budget talks conclude with leaders to spend billions on COVID-19 relief - Daily Express