Slow divorce risks leaving future Britain-EU ties in limbo

FILE PHOTO: A worker arranges flags at the EU headquarters as Britain and the EU launch Brexit talks in Brussels, June 19, 2017. REUTERS/Francois Lenoir/File Photo

By Gabriela Baczynska

BRUSSELS (Reuters) – Divisions between Britain and the EU over mapping out their divorce will be laid bare in Brussels next week when the two sides meet for another round of talks whose timetable already looks tight.

Expectations of a breakthrough are minimal. London wants to focus on what happens after Brexit but the bloc says more ground must first be covered on settling the terms of departure, including the bill, leaving dozens of officials to pick their way through a diplomatic minefield from Monday to Thursday.

The 27 remaining EU states are also insisting on making headway on expatriate rights and the future status of the Irish border before declaring the “sufficient progress” that would allow them to broach talks about Britain’s future relationship with the EU.

Time is limited for negotiations, which started in June and should conclude before the expected Brexit date of March 2019. Otherwise Britain risks leaving the EU unclear on what happens next.

“There are no major expectations as regards next week’s round. The documents published by Britain (this week) refer more to the future relationship than the things to settle in the first place,” an EU diplomat said.

“Many matters, including the financial aspect most importantly, remain unclear from the British side… which makes any ‘significant progress’ less likely in (subsequent negotiations in) October.”

Talks have been slowed by an ill-judged snap election called by Prime Minister Theresa May that weakened her governing Conservative Party and exposed rifts among her ministers over what sort of Brexit they would seek.

Position papers released this week have made clear London will look to closely replicate many of its existing arrangements as an EU state after it leaves.

But the EU wants much more detail on the three priority areas before moving on to anything else.

“We won’t be talking about the future during this round,” an EU official said. “We need detail, the withdrawal deal …has to be a legal text.”

One key point of contention is London’s desire, reaffirmed this week, to break free from the jurisdiction of the EU’s top court, the European Court of Justice (ECJ).

For the EU, ensuring the ECJ can police the withdrawal and continue to have the final say in disputes involving EU citizens residing in Britain – and Britons living in the EU – is essential.

The bloc gave short shrift to what May called an initial “generous offer” on citizens’ rights, saying more detailed legal assurances were necessary.

While there is some common ground, sources on both sides say more technical work is needed. For a graphic, please see: http://tmsnrt.rs/2tws2uK

TIME IS MONEY

But the issue of money is seen by both sides as the hardest nut to crack for now. The EU has floated a divorce bill of around 60 billion euros ($71 billion), which London has dismissed as far too high.

“We should pay not a penny more, not a penny less of what we think our legal obligations amount to,” Britain’s foreign minister Boris Johnson said on Friday.

The bloc hopes to agree a formula with Britain for calculating the figure and sees that too as a precondition to moving to any talks about post-Brexit arrangements.

Without that, the EU has said the talks risk stalling and its chief Brexit negotiator Michel Barnier has already warned time is running out.

But British negotiators have said they will go “line by line” through the EU’s financial expectations and reiterate next week they see the EU’s sum as excessive.

“I would not want to get hopes up that we will see a breakthrough on this issue next week,” said a senior EU official involved in the talks.

“If you look at where we are and where we need to be, the gap is big. I say that in the next round it is unlikely we will make major progress in closing that gap.”

Some pieces of the puzzle should however start falling into place in more talks next month, sources said. This could include a political agreement on the future border between Britain and EU state Ireland.

Technical arrangements around the border would only come in the second phase of talks, as they would largely depend on the nature of future bilateral relationship, including customs arrangements.

A senior EU official warned Britain not to use the North Irish peace process as a bargaining chip, adding that the British government papers showed a lot of “magical thinking” about how the border could function in future.

While opening “phase two” talks had initially been expected in October, Barnier has already signaled this is now less likely to happen. London has said it was still confident the EU would move towards discussing future relations by October. ($1 = 0.8470 euros)

(Additional reporting by Philip Blenkinsop, Julia Fioretti, Robert-Jan Bartunek, Writing by Gabriela Baczynska, Editing by John Stonestreet)

UK banks behind schedule in post-Brexit preparations: ECB

Sabine Lautenschlaeger attends at a news conference at the ECB in Frankfurt October 26, 2014. REUTERS/Ralph Orlowski

FRANKFURT (Reuters) – British-based banks seeking to relocate to the European Union before Britain leaves the bloc are behind schedule in their preparations for the move, a European Central Bank supervisor said on Wednesday.

International banks based in London risk losing access to the EU’s single market once Britain leaves it in 2019, forcing many to consider moving parts of their businesses to the bloc and seek a license from the ECB, the sector’s watchdog.

But Sabine Lautenschlaeger, who represents the ECB’s supervisory arm on the central bank’s board, said progress had been slower than hoped.

“Frankly, the banks are not as far advanced as we would like them to be,” Lautenschlaeger said in a newsletter article.

“Of the banks that have indicated an interest in relocating operations to the euro area, a number of the larger banks have made progress in their planning. But we have not seen many final decisions yet.”

She added the ECB would not grant licenses to “empty shells” and would take a tough stance on “back-to-back transactions”, where a bank would conduct trades out of its EU base but process and risk manage them at its London office.

“While we do not rule out this practice per se, ultimately we expect banks to manage relevant parts of their risks locally and independently,” Lautenschlaeger said.

Lautenschlaeger also said she expected banks moving to the EU to update their recovery plans, which kick in if they fail, “shortly” after moving.

(Reporting By Francesco Canepa; Editing by Angus MacSwan)

UK announces fire safety review after tests identify 82 unsafe tower blocks

A man looks at floral tributes for the victims of the Grenfell Tower fatal fire, in London, Britain July 15, 2017. REUTERS/Tolga Akmen

LONDON (Reuters) – Britain announced a review of building and fire safety rules on Friday after tests conducted following last month’s deadly tower block blaze in London found a cladding system known to be used on 82 buildings breached regulations.

Police have said they believe the system of insulation and cladding panels added during a refurbishment of Grenfell Tower may have contributed to the rapid spread of the fire in which 80 people died.

After initial testing highlighted potential fire risks in buildings across the country, a second, more extensive round of tests found a specific cladding system known to be in use on 82 buildings did not meet building regulations, the government said in a statement.

Alongside the release of the test results, ministers ordered an independent review of building regulations and fire safety.

“It’s clear we need to urgently look at building regulations and fire safety,” communities minister Sajid Javid said in a statement. “This independent review will ensure we can swiftly make any necessary improvements.”

The review will look at the existing regulatory system, compliance and enforcement of the regulations, and will draw on similar regulations overseas.

Friday’s results are the first to be published from six sets of tests involving three different types of aluminium composite material combined with two different types of insulation.

The government said immediate action was already underway to ensure the safety of residents in the affected buildings, without giving further details.

The BBC reported on Thursday that police investigating the fire believe there are grounds to suspect that corporate manslaughter may have been committed by the local council.

(Reporting by William James,; editing by Kylie MacLellan and Ed Osmond)

Britain plans to send warship to South China Sea in move likely to irk Beijing

Britain's Secretary of State for Defence Michael Fallon arrives for a media conference in Sydney, Australia July 27, 2017. REUTERS/David Gray

By Colin Packham

SYDNEY (Reuters) – Britain plans to send a warship to the disputed South China Sea next year to conduct freedom of navigation exercises, Defence Minister Michael Fallon said on Thursday, a move likely to anger Beijing.

Britain would increase in presence in the waters after it sent four British fighter planes for joint exercises with Japan in the region last year, he said.

China claims most of the energy-rich sea where neighbors Brunei, Malaysia, the Philippines, Taiwan and Vietnam also have claims.

“We hope to send a warship to region next year. We have not finalised exactly where that deployment will take place but we won’t be constrained by China from sailing through the South China Sea,” Fallon told Reuters.

“We have the right of freedom of navigation and we will exercise it.”

The presence of a British vessel threatens to stoke tensions, escalated by China’s naval build-up and its increasingly assertive stance.

China’s construction of islands and military facilities in the South China Sea has stoked international condemnation, amid concern Beijing is seeking to restrict free movement and extend its strategic reach.

Britain’s move could also upset ties between London and Beijing, undermining efforts to shore up what the two governments have called a “golden era” in their relationship as Britain heads towards a divorce with the European Union.

“We flew RAF Typhoons through the South China Sea last October and we will exercise that right whenever we next have the opportunity to do so, whenever we have ships or planes in the region,” Fallon said.

The United States estimates Beijing has added more than 3,200 acres (1,300 hectares) on seven features in the South China Sea over the past three years, building runways, ports, aircraft hangars and communications equipment.

To counter the perceived Chinese aggression, the United States has conducted regular freedom of navigation exercises that have angered Beijing.

Earlier this month, the United States sent two bombers over the region, coming just a few months after it sent a warship to carry out a maneuvering drill within 12 nautical miles of one of China’s artificial islands.

China has repeatedly denounced efforts by countries from outside the region to get involved in the South China Sea dispute.

The South China Sea is expected to dominate a regional security meeting in Manila next week, where Chinese Foreign Minister Wang Yi will meet counterparts from the Association of Southeast Asian Nations (ASEAN) countries.

Meeting ASEAN diplomats in Beijing on Wednesday, Wang told them both sides must “exclude disturbances on the South China Sea issue, and maintain positive momentum”, China’s Foreign Ministry said.

(Reporting by Colin Packham; Additional reporting by Ben Blanchard in BEIJING; Editing by Nick Macfie)

Britain and Australia urge China to do more on North Korea threat

North Korean soldiers watch the south side as the United Nations Command officials visit after a commemorative ceremony for the 64th anniversary of the Korean armistice at the truce village of Panmunjom in the Demilitarized Zone (DMZ) dividing the two Koreas July 27, 2017. REUTERS/Jung Yeon-Je/Pool

SYDNEY (Reuters) – Britain and Australia urged China on Thursday to do more to persuade North Korea to drop its nuclear and missile programs.

Earlier this month North Korea, which has warned Australia could be the target of a strike, said it had conducted its first test of an intercontinental ballistic missile, which experts say could reach Alaska.

The United States and other countries have indicated frustration that China, North Korea’s sole major ally, has not done more to rein in the regime of Kim Jung Un.

“With international influence comes responsibility. It is now for Beijing to use the influence it has over the North Korean regime to get it to abandon its program,” British Defence Secretary Michael Fallon told reporters in Sydney.

North Korea has been under U.N. sanctions since 2006 over its ballistic missile and nuclear programs and the Security Council has ratcheted up measures in response to five nuclear weapons tests and two long-range missile launches.

Fallon said North Korea continues to receive help in developing its missile and nuclear ambitions as he called on enforcement of the sanctions.

North Korea’s missile and nuclear program was a central element of the fourth annual meeting of Australia and British ministers.

“We are seeing a level of uncertainty that we have not witnessed in a very long time,” Australian Foreign Minister Julie Bishop told reporters in Sydney.

“It is more important than ever before for like-minded countries to find common cause in supporting that international rules-based order.”

Earlier, Bishop told the Australian Broadcasting Corp’s Radio National that China “has much more leverage over North Korea than it claims.”

“The export relationship with North Korea, the provision of remittance to workers, the foreign investment flows, the technology flows – these are all in China’s hands,” she said.

The United States could impose new sanctions on Chinese firms doing business with Pyongyang, senior U.S. officials have said.

China has rejected the criticism and urged a halt to what it called the “China responsibility theory”, saying all parties needed to pull their weight.

(Reporting by Swati Pandey; Additional reporting by Colin Packham; Editing by Richard Pullin and Neil Fullick)

Five hurt in acid attack robberies in London, two teenagers arrested

Emergency response following acid attack on the junction of Hackney Road junction with Queensbridge Road, London, Britain July 13, 2017 in seen in this picture obtained from social media. SARAH COBBOLD via REUTERS

By Costas Pitas and Paul Sandle

LONDON (Reuters) – British police arrested two teenagers on Friday after five acid attacks on moped riders in less than 90 minutes across east London left several people with facial burns, including one with horrific injuries.

Two assailants on a moped pulled up alongside a 32-year-old man in the Hackney area of east London at 2125 GMT on Thursday and threw acid in his face before one of the pair made off with the victim’s moped.

In the next hour and a half, three other men across Hackney and one in the neighboring borough of Islington had corrosive substances hurled at them, police said.

After one of the robberies in Hackney, a man was left with facial injuries described by police as life-changing.

Police said they had arrested a 15-year-old boy in Stoke Newington, northeast London, and a 16-year-old male at a separate address in north London on suspicion of grievous bodily harm.

Food delivery companies Deliveroo and UberEATS [UBER.UL] said two of their couriers had been attacked.

“We can confirm that one of the victims of these attacks had been taking food to a Deliveroo customer,” a spokesman said.

“We are in touch with the rider and will be providing him with support.”

UberEATS said it was shocked by the attack. “We have been in touch with the courier and offered to help him and his family in any way we can,” said Toussaint Wattinne, General Manager of UberEATS in London.

The company thanked all the couriers who rushed to help in the immediate aftermath of the attack.

Food delivery riders, on both cycles and mopeds, have become a common sight in London and other cities in recent years.

Metropolitan Police Commissioner Cressida Dick said the number of acid attacks appeared to have risen in the capital, though they remained relatively rare.

“I don’t want people to think that this is happening all over London all of the time – it’s really not, but we are concerned because the numbers appear to be going up,” Dick told the LBC radio station in an interview.

“Acid attacks are completely barbaric,” Dick said. “The acid can cause horrendous injuries. The ones last night involved a series of robberies we believe are linked.”

The government said it was working with the police to see what more could be done to stop the use of acid for attacks.

“It’s already an offense to carry acid or a corrosive substance to cause harm,” Prime Minister Theresa May’s spokeswoman said. “We are working with the police to see what more we could do.”

(Reporting by Costas Pitas, Elizabeth Piper and Paul Sandle; Editing by Guy Faulconbridge and Gareth Jones)

UK government declines to publish review on funding of extremism

FILE PHOTO: Britain's Home Secretary, Amber Rudd, arrives in Downing Street for a cabinet meeting, in central London, Britain June 20, 2017. REUTERS/Eddie Keogh

By Michael Holden

LONDON (Reuters) – The British government said on Wednesday it would not publish in full its report on the sources of funding of Islamist extremism in Britain, prompting opposition charges that it was trying to protect its ally Saudi Arabia.

The report, commissioned in November 2015 by then-Prime Minister David Cameron, was handed to the government last year and ministers have been under pressure to release its findings following three deadly attacks in Britain since March which have been blamed on Islamist militants.

Home Secretary (interior minister) Amber Rudd said that though some extremist Islamist organizations were receiving hundreds of thousands of pounds, she had decided against publishing the review in full.

“This is because of the volume of personal information it contains and for national security reasons,” she said in a written statement to parliament.

The review found the most common source of support for these organizations was from small, anonymous donations from people based in Britain, according to Rudd.

But it also found overseas funding was a significant source of income for a small number of organizations.

“Overseas support has allowed individuals to study at institutions that teach deeply conservative forms of Islam and provide highly socially conservative literature and preachers to the UK’s Islamic institutions,” Rudd’s statement said. “Some of these individuals have since become of extremist concern.”

Critics were quick to see a cover-up to shield Saudi Arabia, a powerful Gulf ally of Britain and the world’s biggest oil exporter. The Home Office later released a statement denying this.

“Contrary to suggestions by some media outlets, diplomatic relations played absolutely no part in the decision not to publish the full report,” the statement said.

Lawmaker Caroline Lucas, co-leader of the Green Party who had been pressing the government to release the report, said Rudd’s statement was unacceptable.

“The statement gives absolutely no clue as to which countries foreign funding for extremism originates from – leaving the government open to further allegations of refusing to expose the role of Saudi Arabian money in terrorism in the UK,” she said.

That view was echoed by the Liberal Democrats and the main opposition Labour party.

“There is a strong suspicion this report is being suppressed to protect this government’s trade and diplomatic priorities, including in relation to Saudi Arabia,” said Labour’s home affairs spokeswoman, Diane Abbott.

Britain’s Henry Jackson Society (HJS) think tank last week released a report which said foreign funding for Islamist extremism in Britain primarily came from governments and government-linked foundations in the Gulf, as well as Iran.

“Foremost among these has been Saudi Arabia, which since the 1960s has sponsored a multimillion dollar effort to export Wahhabi Islam across the Islamic world, including to Muslim communities in the West,” the report said.

The Saudi government has demanded the HJS provide evidence for its claims, saying it was committed to fighting terrorism and violent extremism at home and across the world.

“If there is a list of names of Saudi individuals or organizations with proven links to UK terrorism, the think tank should present them and Saudi Arabia will deal with them,” Saudi Information Minister Awwad Alawwad said in a statement.

(Additional reporting by Kylie MacLellan and William MacLean in Dubai; Editing by Mark Heinrich)

Foreign hackers probe European critical infrastructure networks

Cables and computers are seen inside a data centre at an office in the heart of the financial district in London, Britain

By Mark Hosenball

LONDON (Reuters) – Cyber attackers are regularly trying to attack data networks connected to critical national infrastructure systems around Europe, according to current and former European government sources with knowledge of the issue.

The sources acknowledged that European infrastructure data networks face regular attacks similar to those which the Washington Post newspaper said on Sunday had been launched by Russian government hackers against business systems of U.S. nuclear power and other companies involved in energy production.

One former senior British security official said it was an “article of faith” that Russian government hackers were seeking to penetrate UK critical infrastructure though the official said he could not cite public case studies.

A European security source acknowledged that UK authorities were aware of the latest reports about infrastructure hacking attempts and that British authorities were in regular contact with other governments over the attacks.

UK authorities declined to comment on the extent of any such attempted or successful attacks in Britain or elsewhere in Europe or to discuss what possible security measures governments and infrastructure operators might be taking.

The Washington Post said recent attempted Russian hacking attacks on infrastructure related systems in the United States appeared to be an effort to “assess” such networks.

But there was no evidence that hackers had actually penetrated or disrupted key systems controlling operations at nuclear plants.

The Post cited several U.S. and industry officials saying that this was the first time hackers associated with the Russian government are known to have tried to get into US nuclear power companies.

The newspaper said that in late June the Federal Bureau of Investigations (FBI) and the U.S. Homeland Security Department warned energy companies that unnamed foreign hackers were trying to steal login and password information so they could hack into networks.

U.S. officials have acknowledged that many key computer systems which run critical infrastructure ranging from power grids to transportation networks originally were not built with strong security protection against outside hackers.

Security experts in the U.S. and Europe acknowledge that the development and evolution of security measures to protect critical infrastructure system against outside intruders has often run behind the ability of hackers to invent tools to get inside such systems.

 

(Editing by Richard Balmforth)

 

Britain sends in task force to help run council after tower block fire

FILE PHOTO: Damage to Grenfell Tower is seen following the fire in London, Britain, June 25, 2017. REUTERS/Peter Nicholls/File Photo

LONDON (Reuters) – Britain said on Wednesday it was sending in a task force to help run the local authority struggling to cope with the aftermath of a deadly London tower block blaze which killed at least 80 people.

Kensington and Chelsea council has been criticized by victims’ relatives and survivors for its handling of the disaster in Grenfell Tower on June 14 and its leader quit last week over the response to the fire.

“The scale of the recovery effort needed on the Lancaster West estate in the months to come cannot be underestimated,” Communities Secretary Sajid Javid said.

“Support to survivors, the families and friends of those who lost their lives and residents in the wider community must and will be ongoing. The challenge of providing that support is and will continue to be significant.”

Prime Minister Theresa May promised that all residents from the tower would be offered good temporary homes in the local area within three weeks but, with that deadline due on Wednesday, many remain in emergency accommodation after rejecting as unsuitable the premises they had been offered.

There has also been anger at the failure to provide definitive answers about those who are missing since the fire. Police have said 80 people were dead or missing presumed dead, but say they expect the number to rise amid accusations from locals that the scale of the death toll is being kept low.

“I completely understand their desire for answers and we are committed to providing as much information we can, as soon as we can,” Commander Stuart Cundy said on Wednesday adding that all visible human remains had been recovered.

“In total we have made 87 recoveries, but I must stress that the catastrophic damage inside Grenfell Tower means that is not 87 people. Until formal identification has been completed to the coroner’s satisfaction I cannot say how many people have now been recovered.”

The fire has also thrown a spotlight on the safety of exterior cladding used to provide insulation and improve the external appearance of Grenfell Tower and other high-rise blocks. Since the blaze, the government said cladding tested at nearly 200 sites had failed fire tests.

(Reporting by Michael Holden, editing by Elizabeth Piper)

UK government says to introduce EU ‘repeal bill’ to parliament next week

Britain's Secretary of State for Exiting the European Union David Davis leaves Downing Street after a cabinet meeting in London, Britain July 4, 2017. REUTERS/Hannah McKay

LONDON (Reuters) – Legislation to begin the process of transferring European Union law into British law will be presented to parliament next week, Prime Minister Theresa May’s spokesman said on Tuesday.

The spokesman said Brexit minister David Davis had given colleagues an update on the “Repeal Bill”, which will shift EU legislation into British law as part of the Brexit process, at a weekly meeting of May’s top team of ministers.

“He said the legislation, which is the start of the legislative process for Brexit, is expected to be tabled next week,” the spokesman told reporters.

Tens of thousands of EU-related laws have made their way onto the British statute book during more than 40 years of membership of the bloc and unpicking that complex legislative web is likely to take many years.

The repeal bill, which the government says will help achieve a smooth transition as Britain leaves the EU, will transpose EU law and repeal the 1972 European Communities Act which formalizes Britain’s EU membership.

It will also give parliament the power to change existing laws to make sure they work after Brexit.

(Reporting by Kylie MacLellan, editing by Elizabeth Piper)