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Trump and Brexit give momentum to EU defense push

European Commissioner Elzbieta Bienkowska arrives to a meeting of European Union defence ministers at the EU Council in Brussels, Belgium May 18, 2017. REUTERS/Eric Vidal

By Gabriela Baczynska and Robin Emmott

BRUSSELS (Reuters) – The European Union’s executive is ready to increase support for the bloc’s first ever defense research program, offering more funds to develop new military hardware in its earliest stages after years of government cuts, a top EU official said.

Following a 90-million-euro pilot investment from the EU’s common budget in 2017-2019, the European Commission is proposing 500 million euros ($563 million) for the 2019-2020 period that could rise to 1.5 billion euros a year from 2021, Industry Commissioner Elzbieta Bienkowska told Reuters.

“European citizens see security as the number one thing that Europe should provide to them, so it’s time to propose this,” Bienkowska said in an interview.

With Britain, one of EU’s leading military powers, leaving the bloc, ideas for common EU defense are gathering pace in the wake of Islamic attacks in Western Europe. Europeans are also worried about U.S. commitment to NATO under President Donald Trump.

Under the proposal unveiled on Wednesday, at least three firms and two member states would have to submit a joint project to be eligible for financing from the EU budget.

If agreed by governments and the European Parliament, the EU budget would put up 20 percent of the costs of developing prototypes, Bienkowska said.

“The prototype phase is the riskiest one and it is very important to have incentives from the European budget to prepare common projects,” she added.

A European drone is often cited as an example of how EU funding can help get projects underway. Bienkowska said she also hoped to see cyber projects from smaller firms and innovative startups.

She said she wants negotiations and legislative work between the Commission, member states and the European Parliament to finalize by the end of 2018.

BREXIT FACTOR

The EU’s political capital Brussels hopes it can turn the tables on Brexit – an unprecedented setback in 60 years of European integration – by moving ahead with closer defense and security cooperation, which London had long blocked.

The EU, where most governments are also NATO allies, have also come under increased pressure from Trump, who last month scolded the Europeans for failing to spend enough on their own defense.

Though Bienkowska said work on promoting more security and defense cooperation in the EU has started two years ago, she admitted Europe’s unease about Trump gives it additional momentum: “All developments in the United States will make our cooperation (in Europe) stronger.”

“We will work more closely in the European Union, what we want to achieve is to have a stronger European defense and a stronger NATO.”

Russia’s 2014 annexation of Crimea from Ukraine and its subsequent backing for militias fighting Kiev troops in the industrial east of the former Soviet republic also add to the bloc’s security concerns.

The EU estimates it loses up to a 100 billion euros a year on duplication, leaving it with far fewer capabilities than the United States. Years of defense cuts have worsened the issue as national governments jealously protect their own firms.

Europe has 37 types of armored personal carriers and 12 types of tanker aircraft compared to nine and four respectively in the United States, according to EU analysis.

“Up until now, member states were doing things completely separately, without any cooperation. I want to appeal to the member states to think about common projects, because the money will be there,” Bienkowska said.

For the future, Bienkowska is mulling a common European defense bond for joint purchases from 2021, though she said no decisions had yet been taken.

Italy is a proponent of issuing joint EU debt, as well as exempting various types of spending from budget deficit limits. Germany, on the other hand, which is the bloc’s largest economy and key power, is opposed to both these approaches. ($1 = 0.8887 euros)

(Editing by Pritha Sarkar)

Good atmosphere but nothing new in EU talks with Erdogan, sources say

Turkish President Tayyip Erdogan delivers a speech during a graduation ceremony at an Imam Hatip religious school association in Istanbul, Turkey, May 26, 2017. REUTERS/Murad Sezer

By Gabriela Baczynska

BRUSSELS (Reuters) – Talks last week between the heads of European Union institutions and Turkey’s president, Tayyip Erdogan, were held in a “good atmosphere” but produced no new agreements, officials in Brussels said, playing down comments by the Turkish leader.

Tensions between Turkey and the EU run high over rights and security issues, but the bloc depends on the help of NATO ally Ankara on migration and the conflict in Syria.

After meeting European Council President Donald Tusk and European Commission President Jean-Claude Juncker last week in Brussels, Erdogan was quoted as saying he had been presented with a new 12-month timetable for renewing ties.

But senior EU officials voiced caution and some scepticism, saying no formal deadlines were set. The EU has a list of mid- and high-level meetings it hopes to hold with Turkey this year, they said, but any improvement in bilateral ties would depend on Erdogan’s resolving at least some of many points of contention.

They include the EU’s worry that Turkey’s anti-terror laws are too broad and used to persecute Erdogan critics, as demonstrated in Ankara’s sweeping security crackdown following a botched coup almost a year ago.

Other concerns relate to the treatment of the Kurds, the media and academics, as well as Erdogan moving to assume even more powers following an April referendum.

The pre-referendum campaign produced new spats with EU members Germany and the Netherlands, whose authorities Erdogan likened to Nazis when they had prevented Turkish politicians from campaigning in their countries.

Despite the often harsh rhetoric, senior EU officials said the atmosphere of the meeting was “good” and “constructive”.

“It was definitely not hostile, but both sides pretty much restated their well-known positions,” one of the sources said.

Turkey complains about slow progress in its stalled EU accession talks, discussions on visa-free travel for Turks to the EU and disbursement of EU funds to Syrian refugees living in Turkey.

The bloc says Erdogan must first address concerns over human rights and rule of law, and should work with the Council of Europe – a European rights watchdog of which Turkey is a member – on that..

The EU says progress in talks over reuniting the ethnically split Cyprus is also key to unlocking other area, including ideas to beef up an existing customs union between Turkey and the EU.

Erdogan has suggested Turkey could hold a referendum on continuing EU accession talks, and possibly another on reinstating the death penalty. Restoring capital punishment would end Turkey’s bid to join the EU.

EU leaders will discuss their ties and especially their cooperation with Turkey on migration when in Brussels on June 22-23. Calls from the European Parliament to formally halt Turkey’s accession talks have so far not reached critical mass.

“We have no choice,” one of the sources said when asked if the EU was looking to working more with Turkey after the top-level talks with Erdogan.

(Reporting by Gabriela Baczynska, editing by Larry King)

Good atmosphere but nothing new in EU talks with Erdogan, sources say

By Gabriela Baczynska

Tensions between Turkey and the EU run high over rights and security issues, but the bloc depends on the help of NATO ally Ankara on migration and the conflict in Syria.

Other concerns relate to the treatment of the Kurds, the media and academics, as well as Erdogan moving to assume even more powers following an April referendum.

Despite the often harsh rhetoric, senior EU officials said the atmosphere of the meeting was “good” and “constructive”.

“It was definitely not hostile, but both sides pretty much restated their well-known positions,” one of the sources said.

Turkey complains about slow progress in its stalled EU accession talks, discussions on visa-free travel for Turks to the EU and disbursement of EU funds to Syrian refugees living in Turkey.

The EU says progress in talks over reuniting the ethnically split Cyprus is also key to unlocking other area, including ideas to beef up an existing customs union between Turkey and the EU.

“We have no choice,” one of the sources said when asked if the EU was looking to working more with Turkey after the top-level talks with Erdogan.

(Reporting by Gabriela Baczynska, editing by Larry King)

EU raises human rights in talks with Turkey’s Erdogan

Turkish President Recep Tayyip Erdogan (L) shakes hands with European Council President Donald Tusk (R) in Brussels, Belgium, May 25, 2017. REUTERS/Oliver Hoslet/Pool

BRUSSELS (Reuters) – Senior European Union officials on Thursday pressed President Tayyip Erdogan over Turkey’s human rights record while he pushed Brussels to deliver on promises of visa-free travel to Europe for Turks.

Erdogan’s visit to Brussels, where he was also due to attend a NATO summit, comes at a time of strain in EU-Turkey relations.

The EU has expressed concern over Turkey’s sacking and jailing of tens of thousands of soldiers, police, teachers and civil servants since a failed military coup last July. It has also criticized a revamping of Turkey’s constitution – backed by a referendum – that greatly expands Erdogan’s powers.

Turkey says its crackdown is targeting supporters of a exiled Muslim cleric it blames for the coup attempt. It has also accused the EU of frustrating Ankara’s decades-old bid to join the bloc. Talks are now effectively frozen and Erdogan has suggested Turkey might walk away from the EU.

“We discussed the need to cooperate. I put the question of human rights in the center of our discussions with Erdogan,” European Council chief Donald Tusk wrote in a tweet following the meeting but gave no further details.

Erdogan posed for photos with Tusk and European Commission president Jean-Claude Juncker but the atmosphere was frosty and they exchanged no words in public, in contrast to the impromptu conversation the EU officials struck up with U.S. President Donald Trump earlier in the day.

Juncker, Tusk and Erdogan met together for 40 minutes, followed by a 30-minute meeting between Juncker and Erdogan, a spokeswoman for the Commission said.

“The EU and Turkey must and will continue to cooperate. Major issues of common interest were discussed in detail in a good and constructive atmosphere,” she said.

MIGRANT DEAL

EU officials said the three men discussed the functioning of a 2016 accord whereby Ankara prevents migrants traveling from its territory to Europe in return for funds to aid refugees stuck in Turkey and visa-free travel to the bloc for Turks.

Ankara has previously threatened to walk away from the deal, citing frustration over what it says is Europe’s failure to deliver on its side of the bargain. The EU says Turkey must first amend its security laws.

But EU officials said the agreement did not appear to be in jeopardy after the talks between Erdogan, Tusk and Juncker, their first for nine months. “It is working so far,” one EU official said. “We didn’t see any sign of it changing.”

Turkish presidential sources said Erdogan, Tusk and Juncker had emphasized the need to implement the deal on migrants in their talks.

Erdogan also met new French President Emmanuel Macron in Brussels and they agreed on boosting annual bilateral trade to 20 billion euros ($22 billion) and improving Ankara’s diplomatic ties with the EU, the Turkish sources said.

Macron raised the issue of a French photographer detained by Turkish police while on an assignment in the mainly Kurdish southeast and who has begun a hunger strike in protest, a French official said.

Erdogan told Macron he would quickly look into the situation. Macron and Erdogan also agreed to strengthen consultations on the situation in Syria, the official said.

(Reporting By Philip Blenkinsop, Alastair Macdonald and Michel Rose; additional reporting by Ece Toksabay and Tuvan Gumrukcu; Writing by David Dolan,; Editing by Robert-Jan Bartunek and Gareth Jones)

Turkish MPs elect judicial board under new Erdogan constitution

FILE PHOTO: Turkish President Recep Tayyip Erdogan attends the Roundtable Summit Phase One Sessions of Belt and Road Forum at the International Conference Center in Yanqi Lake on May 15, 2017 in Beijing, China REUTERS/Lintao Zhang/Pool/File Photo

By Gulsen Solaker and Daren Butler

ANKARA/ISTANBUL (Reuters) – Turkish lawmakers elected seven members to a reshaped judicial authority on Wednesday, part of a constitutional overhaul backed by a referendum last month that considerably expands the powers of President Tayyip Erdogan.

Erdogan says the changes are vital to ensure stability in Turkey, which is battling Kurdish and Islamist militants and experienced an abortive coup last year blamed by Ankara on a U.S.-based cleric who had many supporters in the judiciary.

But opposition parties and human rights groups say the reforms threaten judicial independence and push Turkey toward one-man rule. Some of Turkey’s NATO allies and the European Union, which it aspires to join, have also expressed concern.

The two largest opposition parties, who say the April 16 referendum was marred by possible fraud, boycotted the overnight vote in parliament appointing seven members to a redesigned, 13-strong Council of Judges and Prosecutors (HSK) – all candidates of the ruling AK Party and its nationalist MHP ally.

The council oversees the appointment, promotion, transfer, disciplining and dismissal of judges and prosecutors.

The judiciary had previously appointed most of the HSK members but following the referendum parliament now picks seven and Erdogan a further four. The other two members of the board are the justice minister and ministry undersecretary.

“The vote has further politicized the judiciary, turning it into a totally AKP and MHP judiciary,” Filiz Kerestecioglu, a deputy from the pro-Kurdish HDP, told Reuters, saying it had decided not to participate because the process was illegitimate.

“SPIRIT OF THE REFERENDUM”

The other main opposition party, the secularist CHP, echoed that criticism.

“The party judiciary era has begun. This structure may be a complete disaster for Turkey,” CHP lawmaker Levent Gok told Reuters, accusing the ruling party of seeking to create a judiciary that was biased and dependent on it.

Prime Minister Binali Yildirim defended the vote.

“There’s no problem. It conforms to the spirit of the referendum,” the Anadolu state news agency quoted him saying.

The judicial and constitutional changes come amid a continued crackdown on suspected supporters of the Muslim cleric Fethullah Gulen blamed by Ankara for last July’s failed coup.

The HSK has already expelled 4,238 judges and prosecutors in purges targeting Gulen followers, roughly a quarter of the national total. Gulen, who has lived in the United States for decades, denies any role in the coup attempt.

Ankara says the HSK changes will prevent the judiciary falling under the control of specific groups such as the Gulenists, who Erdogan accuses of infiltrating state institutions over many years.

A CHP deputy said last month the vast majority of newly appointed judges had AKP links. The Justice Ministry rejected the allegation as slander and said the judges’ selection process complied fully with regulations.

The Venice Commission, a panel of legal experts from the Council of Europe, a rights body to which Turkey belongs, warned in March ahead of Turkey’s referendum that the proposed constitutional shakeup represented a “dangerous step backwards” for democracy. Ankara rejected the criticism.

The overhaul of the HSK is the second of the changes backed by the referendum to take effect. Another change, allowing the president to be a member of a political party, came into force this month when Erdogan rejoined the AK Party and he is set to regain the party leadership at a special congress on Sunday.

The remaining changes approved in the referendum will be implemented after a parliamentary election due in November 2019. They will enable the president to draft budgets, declare a state of emergency and issue decrees without parliamentary approval.

(Writing by Daren Butler; editing by Ralph Boulton and Gareth Jones)

U.S., EU set meeting on airline security, electronic devices

FILE PHOTO - A TSA worker loads suitcases at the checked luggage security screening station at Los Angeles International Airport in Los Angeles, California, U.S. on September 7, 2011. REUTERS/Jonathan Alcorn/File Photo

By David Shepardson and Julia Fioretti

WASHINGTON/BRUSSELS (Reuters) – U.S. and European officials will discuss airline security issues at a meeting in Brussels next week, including possibly expanding the number of airports that ban passengers from carrying electronic devices bigger than cellphones aboard flights, a European Commission spokeswoman said on Friday.

U.S. Homeland Security Department Secretary John Kelly told European ministers by phone Friday the department does not plan to immediately unveil any new measures, the EU said.

U.S. Homeland Security spokesman David Lapan said no final decision had been made on whether to expand the restrictions and he declined to immediately confirm Kelly’s trip to Brussels.

“The U.S. and the EU are on the same side when it comes to fighting terrorism and protecting our security,” Dimitris Avramopoulos, EU commissioner for migration, home affairs and citizenship, said in a statement.

“Our phone call today proved once again the strong cooperation we have on these matters. I look forward to welcoming Mr Kelly and his experts in Brussels next week to continue our positive talks.”

Fears that a bomb could be concealed in electronic devices prompted the United States to announce in March that it would restrict passengers from bringing laptops onto flights originating from 10 airports, including those in the United Arab Emirates, Saudi Arabia, Qatar and Turkey. Britain followed suit with restrictions on a slightly different set of routes.

Airlines and several countries affected by the electronics ban have pushed for more consultation with American and British regulators after the abrupt introduction of the restrictions took the industry by surprise.

U.S. and European carriers are concerned about the logistics of checking large numbers of devices. Some airline officials say they would need to hire more staff to impose additional curbs, and are worried about how much advance notice they would have.

On Wednesday, Reuters reported that the Trump administration is likely to include some European countries in the in-cabin electronics ban.

Some U.S. and European airlines have been planning for a wider ban, industry officials have told Reuters.

European regulators have warned that placing hundreds of devices in the hold on long-haul flights could also compromise safety by increasing the risk of fire from poorly deactivated lithium-ion batteries.

Kelly briefed members of Congress Thursday and held a meeting with high-level executives of Delta Air Lines <DAL.N>, United Airlines <UAL.N>, American Airlines Group Inc <AAL.O> and Airlines For America, a trade group. A congressional official said Homeland Security was likely to expand the ban soon, but did not say when or to what airports.

The airlines declined to comment, but an airline official said government officials suggested an expansion of the ban was expected soon but it wasn’t certain when.

The trade group said in a statement it appreciated the meeting “to discuss the current state of aviation security.”

The group voted to work with government officials to “minimize the impact on the traveling public by utilizing the risk-based solutions that are the core of our foundation as the safest aviation system in the world.”

In 2016, 30 million people flew to the United States from Europe, according to U.S. Transportation Department data.

According to airports association ACI Europe, summer schedules for 2017 at airports in 28 European Union countries show there are 3,257 flights per week to the United States.

Kelly said last month the ban was likely to expand, given the sophisticated threats in aviation and intelligence findings that would-be attackers were trying to hide explosives in electronic devices.

The predicament is reminiscent of the aviation industry’s response to the 2014 downing of Malaysian Airlines flight MH17.

At the time, airlines called for greater sharing of information about potential threats to commercial aircraft from conflict zones, even as intelligence agencies expressed reluctance over the risk of revealing sources.

Kelly was scheduled to meet President Donald Trump on Friday but a DHS official said the meeting was about a different topic.

(Reporting by David Shepardson in Washington; Additional reporting by Julia C. Fioretti in Brussels, Victoria Bryan in Berlin and Tim Hepher in Paris; Editing by David Gregorio and Bernadette Baum)

After Macron win, EU lawmakers eye swap plan to close Strasbourg seat

By Francesco Guarascio

BRUSSELS (Reuters) – Plans to move the European Union’s London-based medicines regulator to Strasbourg and push through a long-held project to close the EU parliament’s expensive second seat in the French city are gaining traction among legislators, EU officials said.

Lawmakers have been holding discreet talks on such a swap, which they hope would help eliminate French opposition to Strasbourg losing the seat, one official said.

Last week’s election win in France of pro-EU President Emmanuel Macron may further help the plan come to fruition.

MEPs convene in Strasbourg for one week every month and in Brussels for the remainder. The monthly upheaval costs the bloc 114 million euros a year, EU auditors say.

Critics have long called for the arrangement to be scrapped, but it has stayed in place largely because France would have vetoed any attempt to make the required amendment to the EU treaty.

However, since Britain voted to leave the EU, lawmakers from several groupings in the parliament have come to support the idea of a swap, a parliament official said.

A text urging to use the “excellent opportunity” of the Brexit-driven transfer of EU agencies from London to reach an agreement on a single seat of the EU parliament in Brussels was backed in April by 75 percent of EU lawmakers.

The European Medicines Agency (EMA), one of the biggest EU bodies, will have to be moved from London after Britain leaves the EU.

London also hosts the European Banking Authority, which Germany’s Frankfurt is seen as likely to win over competitors Paris, Dublin, Amsterdam and other European cities.

Outgoing French President Francois Hollande chose Lille as the French candidate city to host the EU drugs regulator. Macron would have to reverse such a choice, a potentially risky move as France prepares for legislative elections in June.

Other EU countries would also have to approve EMA’s transfer to France, giving up their own ambitions. Around 40 European cities, from nearly all 27 remaining EU states, have put forward their candidacy to host EMA, with Milan and Vienna seen as the frontrunners.

(Reporting by Francesco Guarascio @fraguarascio; Editing by Raissa Kasolowsky)

Islamic State militants developing own social media platform: Europol

By Michael Holden

LONDON (Reuters) – Islamic State militants are developing their own social media platform to avoid security crackdowns on their communications and propaganda, the head of the European Union’s police agency said on Wednesday.

Europol Director Rob Wainwright said the new online platform had been uncovered during a 48-hour operation against Internet extremism last week.

“Within that operation it was revealed IS was now developing its very own social media platform, its own part of the Internet to run its agenda,” Wainwright told a security conference in London. “It does show that some members of Daesh (IS), at least, continue to innovate in this space.”

During a Europol-coordinated crackdown on IS and al Qaeda material, which involved officials from the United States, Belgium, Greece, Poland, and Portugal, more than 2,000 extremist items were identified, hosted on 52 social media platforms.

Jihadists have often relied on mainstream social media platforms for online communications and to spread propaganda, with private channels on messaging app Telegram being especially popular over the past year.

Technology firms, such as Facebook and Google, have come under increasing political pressure to do more to tackle extremist material online and to make it harder for groups such as Islamic State to communicate through encrypted services to avoid detection by security services.

However, Wainwright said that IS, by creating its own service, was responding to concerted pressure from intelligence agencies, police forces and the tech sector, and were trying to found a way around it.

“We have certainly made it a lot harder for them to operate in this space but we’re still seeing the publication of these awful videos, communications operating large scale across the Internet,” he said, adding he did not know if it would be technically harder to take down IS’s own platform.

Wainwright also said he believed that security cooperation between Britain and the EU would continue after Brexit, despite British warnings it is likely to leave Europol and cease sharing intelligence if it strikes no divorce deal with the bloc.

“The operational requirement is for that to be retained. If anything, “If anything we need to have an even more closely integrated pan-European response to security if you consider the way in which the threat is heading,” he said.

Europe, he added, is facing “the highest terrorist threat for a generation”.

However, Wainwright said there were important legal issues that would have to be thrashed out and it was not easy “to just cut and paste current arrangements”.

“The legal issues have to be worked through and then they have to be worked through within of course the broader political context of the Article 50 negotiations (on Britain’s planned exit from the EU),” he said.

“In the end I hope the grown-ups in the room will realize that … security is one of the most important areas of the whole process. We need to get that right in the collective security interest of Europe as a whole, including of course the United Kingdom.”

(Additional reporting by Eric Auchard; editing by Mark Heinrich)

Germany must lift border controls, EU executive says

FILE PHOTO: Syrian refugees arrive at the camp for refugees and migrants in Friedland, Germany April 4, 2016. REUTERS/Kai Pfaffenbach/File Photo

BRUSSELS (Reuters) – Germany, Austria, Denmark and Norway should lift border controls within six months, the European Commission said on Tuesday, hours after Sweden said it was also planning to end frontier checks.

Part of the European Union’s response to a surge of refugees and migrants in 2015, the bloc allowed controls in its passport-free area, despite concerns about the impact on trade, but EU home affairs commissioner Dimitris Avramopoulos said they should now end.

“The time has come to take the last concrete steps to gradually return to a normal functioning of the Schengen area,” he said of the passport-free area named after a town in Luxembourg and meant to be a symbol of free movement in the bloc.

“Schengen is one of the greatest achievements of the European project. We must do everything to … protect it,” Avramopoulos said in a speech.

More than a million people sought asylum in Europe’s rich north in 2015, mostly in Germany but also in large numbers in Sweden, straining the capacity of countries to cope.

A contentious deal with Turkey to stop Syrian refugees from reaching Greece and the overland route to Germany, in return for EU funds, has reduced flows to a trickle, although thousands of migrants still try to reach Europe from Libya via sea routes.

The Swedish government said on Tuesday it would remove ID checks on journeys from Denmark into Sweden. However, its policy was not immediately clear after it said it would also maintain surveillance cameras and x-raying vehicles passing over the border.

Germany has argued it needs the controls despite the fall in migrants coming through Greece and the Western Balkans to combat the threat of Islamic militancy in Europe.

Under EU rules, the countries were allowed to impose the emergency controls for up to two years in September 2015.

The EU executive approved six-month extensions of controls at the German-Austrian border, at Austria’s frontiers with Slovenia and Hungary and at Danish, Swedish and Norwegian borders. Norway is a member of Schengen but not the EU.

EU governments must now agree to the recommendations.

(Reporting by Robin Emmott; editing by Francesco Guarascio)

EU leaders united on Brexit demands – for now

European Heads of State meet during a EU summit in Brussels, Belgium April 29, 2017. REUTERS/Virginia Mayo/Pool

By Farah Salhi and Jan Strupczewski

BRUSSELS (Reuters) – European Union leaders endorsed a stiff set of divorce terms for Britain at a summit on Saturday, rejoicing in a rare show of unity in adversity but well aware that may start to fray once negotiations begin.

Meeting for the first time since British Prime Minister Theresa May formally triggered a two-year countdown to Brexit in late March, the 27 other EU leaders took just a minute as they sat down to lunch in Brussels to approve 8 pages of negotiating guidelines hammered out by their diplomats over the past month.

“Guidelines adopted unanimously. EU27 firm and fair political mandate for the Brexit talks is ready,” summit chair Donald Tusk tweeted. Leaders applauded, officials said, after formally adopting unmodified the text drafted by their aides.

The guidelines were published here: http://www.consilium.europa.eu/en/press/press-releases/2017/04/29-euco-brexit-guidelines/

Those will bind Michel Barnier, their chief negotiator, to seek a deal that secures the rights of 3 million EU expats living in Britain, ensure London pays tens of billions of euros Brussels thinks it will be owed and avoids destabilizing peace by creating a hard EU-UK border across the island of Ireland.

“We are ready,” Barnier said. “We are together.”

They also rule out discussing the free trade deal May wants until they see progress on agreeing those key withdrawal terms.

“Before discussing the future, we have to sort out our past,” Tusk said in comments echoed by German Chancellor Angela Merkel, who said “substantive issues” must first be settled.

In a mark of how last year’s Brexit vote has called into question the unity of the United Kingdom itself, leaders will also offer Irish Prime Minister Enda Kenny a pledge that if Northern Ireland, which voted against Brexit, ever unites with his country, it will automatically be in the EU.

The leaders may spend more time in discussions, including with Barnier, on what criteria they may use to judge, come the autumn, whether he has made sufficient progress to warrant a start on trade talks. They may also talk about how to manage a transition, after Britain leaves in 2019, to a new relationship likely to take many more years to finalize.

That decision on what is “sufficient” is the kind of debate that can poison relations as the 27 seek to protect national interests. Also contentious will be which countries scoop the prizes of hosting two EU agencies set to be moved from London.

With most of the 27 offering to house the European Medicines Agency (EMA) and several wanting the European Banking Authority (EBA), Tusk and EU chief executive Jean-Claude Juncker will propose criteria for making the choices to avoid unseemly rows.

“We are remarkably united,” one national leader who will be at the table told Reuters. “But then it’s always easy to be united on what you want before you start negotiating.”

Belgian Prime Minister Charles Michel warned against falling into a “trap” where Britain divided the bloc to its advantage.

DIFFERENCES

Among possible differences, the priorities of poor, eastern states are to secure residency rights for their many workers in Britain and British money for the EU budget; Germany and others set store by a smooth transition to a new free trade agreement.

Unwonted unity has been forged by the shock of Brexit; it breaks a taboo and raises fears of further break-up at the hands of nationalists like French far-right leader Marine Le Pen. She will contest her country’s presidential election run-off on May 7, though few expect her to beat centrist Emmanuel Macron.

The EU sees it as vital that Britain not be seen to profit from Brexit to dissuade others from following suit.

However, some officials are also voicing concern that the process of weaving maximalist demands into the negotiating text could risk souring the atmosphere with May, who expects to start talks shortly after the UK election she has called for June 8.

Senior officials in Brussels believe the risk of a breakdown in talks that could see Britain simply walking out into chaotic legal limbo in March 2019 has diminished since May wrote to Tusk on March 29 in terms recognizing a need to compromise.

Merkel, facing her own election in September, warned Britain last week against lingering “illusions” of how much access it can get to EU markets. And some diplomats fear the tone of EU demands sounds too aggressive and may create a popular backlash in Britain that might make it hard for May to strike a deal.

“These are legally solid arguments,” one said, noting for example a demand Britain not only lose the EMA and EBA but also pay the moving costs. “But we don’t want to sound too punitive.”

Luxembourg Prime Minister Xavier Bettel said: “They are maybe not any more in our family but they are still our neighbors so we should have respect for each other.”

(Reporting by Philip Blenkinsop, Foo Yun Chee, Alastair Macdonald, Farah Salhi, Andreas Rinke and Jan Strupczewski; Writing by Alastair Macdonald; Editing by Janet Lawrence)

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