Michel Barnier says October will be 'moment of truth' for Brexit
Michel Barnier, the European Union's chief Brexit negotiator, said the bloc is “ready to improve” its offer to the UK on the Irish border issue and that October would be the “moment of truth” for negotiations.
The Frenchman told reporters in Brussels overnight that he is open to new proposals to help break the Brexit deadlock over Ireland.
“Our proposal for the backstop for Ireland and Northern Ireland has been on the table since February,” Barnier said. “We are ready to improve this proposal.”
The statements come as EU leaders ready themselves for a summit in Salzburg on Wednesday where they are set to discuss Brexit and where Prime Minister Theresa May will try to gather support from her peers for her Chequers plan.
May insists there needs to be "friction-free movement of goods", with no customs or regulatory checks, between Northern Ireland and the Republic, to avoid a hard border there.
Both sides are hoping that an agreement will be reached by the start of November at the latest. Barnier said the talks were in the "home straight" but there were still significant areas of disagreement.
After the gathering in Salzburg, the UK will have to return to the negotiating table between the Tory party in Birmingham on 3 October and then in the summit in Brussels two weeks later. Although both sides will not met the original October deadline, they are hopeful that time remains after reaching a deal to get approval from the British and European parliaments.
Barnier's statements had a lifting effect on the pound.
Jasper Lawler, analyst at London Capital Group, said on Wednesday: "News overnight that EU chief negotiator Michel Barnier has fulfilled his desires to de-dramatize the Irish boarder issue lifted the pound to $1.3175, its highest level in 7 weeks. Given the pound’s sensitivity to any Brexit headlines, this pro-Brexit deal news has once again lifted pound traders’ spirits that a Brexit deal may just get pushed through as the deadline looms closer."