BRUSSELS: The European Union is ready to extend Brexit’s post-divorce transition period by a year to allow more time to find a trade deal, diplomats said Wednesday ahead of a difficult summit.
Prime Minister Theresa may is due in Brussels later in the day to address the other 27 EU leaders on the stalled negotiations toward a divorce deal to bring Britain out of the Union.
Talks are at an impasse over the issue of a legal backstop to keep the border between Northern Ireland and the Irish Republic open after the UK leaves the bloc on march 29 — but EU negotiator Michel Barnier has an idea.
According to two European diplomats, Barnier is ready to add a year to the 21-month post Brexit transition period — taking it to the end of 2021 — to provide more space to strike a trade deal.
This offer would not in itself resolve the back-stop issue, which must be settled in the Brexit treaty that must be ratified before March to avoid a damaging “no deal” scenarios.
But the extension would grant more time to agree a new EU-UK trade relationship and avoid the need for separate plans for Northern Ireland, which London staunchly opposes.
The diplomats said that Barnier had revealed his offer to EU ministers at a meeting in Luxembourg on Wednesday.
With the offer on the table, Europe is seeking to put pressure on May to come to Brussels with ideas of her own.
“I am going to ask Prime Minister May whether she has concrete proposals on how to break the impasse,” EU president Donald Tusk declared.
But May, hemmed in by opponents in her own party and even in her own cabinet, has no such proposals.
The choreography of Wednesday’s summit opening emphasises British isolation.
May will meet one-on-one with Tusk at 17:45 (1545 GMT) before briefing her 27 European colleagues, but then the rest of the EU leaders will leave to discuss Brexit over dinner without her.
Tusk has made it clear that if May and EU negotiator Michel Barnier do not offer signs of concrete progress toward a draft deal he will not call a November summit to sign it.
Instead, the whole circus could either be pushed back to December or — more dramatically — the EU could use the November weekend to meet on preparations for a “no-deal” Brexit.
Previously, both sides had agreed that Britain crashing out of the Union on March 29 next year with neither a divorce agreement nor a road-map to future ties would be an economic and diplomatic disaster.
But, after Britain’s refusal to accept an indefinite legal “backstop” to prevent the return of a hard border between Northern Ireland and the Irish Republic, doubts are mounting.
“I think we are quite close to a no-deal,” warned Konrad Szymanski, the Polish minister for European Affairs after a pre-summit meeting with his European counterparts in Luxembourg.
Back in Brussels, a stern Tusk said he had “no grounds for optimism” based on a report Tuesday from Barnier and May’s appearance in parliament on Monday.
The main disagreement between London and Brussels is over how to keep the Irish border open after Brexit, but May is also fighting with her own MPs, who must ultimately approve the final divorce deal.
At a three-hour cabinet meeting on Tuesday morning, which included ministers with reservations about her strategy, May said a deal was possible if they all stood together.
“I’m convinced that if we as a government stand together and stand firm, we can achieve this,” she said, according to her spokesman.
Addressing MPs in the House of Commons on Monday, May had said a deal was “achievable” while sticking to her principles on the Irish border issue.
But a senior European official said the speech had only underscored for Barnier the uphill struggle he faces to get an agreement.
To solve the Irish question, Britain has proposed staying aligned to the EU’s customs rules until a wider trade deal can be signed that avoids the need for any frontier checks.
But her own euroskeptic Conservative MPs are demanding this “backstop” arrangement be time-limited, something the EU will not accept.
May said the EU was also insisting on its own “backstop” in case the London proposal did not work, which would see Northern Ireland alone stay aligned to the customs union and single market.
She says this would threaten the integrity of the United Kingdom — and it is strongly opposed by her Northern Irish allies from the Democratic Unionist Party (DUP).
Economists fear “no deal” Brexit would greatly disrupt trade, travel and manufacturers’ supply chains in Europe, push Britain into recession and even have global consequences.
On Tuesday, the chairman of the US Federal Reserve Jerome Powell warned that a “disorderly Brexit” would slow the EU economy as a whole and have a knock-on effect on US banks.
EU offers to extend Brexit transition as leaders meet
EU offers to extend Brexit transition as leaders meet
- EU negotiator Michel Barnier is ready to add a year to the 21-month post Brexit transition period
- The main disagreement between London and Brussels is over how to keep the Irish border open after Brexit
Modi’s rooftop solar push slowed by reluctant lenders, states
- The shortfalls represent the latest challenge to India’s efforts to nearly double clean energy capacity to 500 gigawatts by 2030
SINGAPORE/MUMBAI/BHUBANESWAR, India: Indian Prime Minister Narendra Modi’s push to accelerate the rollout of rooftop solar power is falling short of targets despite heavy subsidies due to loan delays and limited support from state utilities, vendors and analysts say.
The shortfalls represent the latest challenge to India’s efforts to nearly double clean energy capacity to 500 gigawatts by 2030, and come as the government plans to suspend clean energy tendering targets amid a mounting backlog of awarded projects yet to be built.
Challenges to plans to increase solar uptake may mean India maintains its reliance on coal-fired power.
India’s Ministry for New and Renewable Energy created its subsidy program for residential solar panel installations in February 2024, covering up to 40 percent of the costs.
But residential installations at 2.36 million are well below the ministry’s target of 4 million by March, according to data from the program’s website.
“Banks’ reluctance to lend and states’ hesitance to promote the schemes could derail India’s efforts to transition away from coal,” said Shreya Jai, the lead energy analyst at research firm Climate Trends in New Delhi.
Roughly three in five rooftop solar applications filed on the scheme’s website are yet to be approved while about 7 percent have been rejected, according to government data on the program, known as the PM Surya Ghar.
In a statement to Reuters about the pending applications, the renewable energy ministry pointed to accelerating installations which have benefited over 3 million households, and said the scheme enables state-owned utilities to reduce subsidy payouts to keep residential power bills in check.
“The loan rejection rate varies across states,” the statement said.
Under PM Surya Ghar, consumers apply and select a vendor who handles paperwork and arranges bank financing for solar panels. After loan approval and installation, the vendor submits proof, after which the government subsidy is credited to the bank.
BANK DELAYS
However, banks have been rejecting or delaying loans for numerous reasons including lack of documentation, which they say is necessary to protect public funds.
“We are working with the government to push for some standard documentation, because it is necessary to avoid bad loans. Currently if loans go bad, banks can take away these panels but what will we do with these panels?” said a senior official at a major government-owned bank.
Chamrulal Mishra, a solar vendor in the eastern Indian state of Odisha, said applications are often rejected because the customer has missed electricity payments or because land records are still in the name of deceased relatives.
Residents there dispute the claims that they have missed payments, which they attribute to administrative errors after a change in utility ownership decades prior.
A spokesperson for India’s Department of Financial Services, which regulates the country’s banks, said they have responded to consumer feedback to allow co-applicants for loans to clear up title claims and the simplification of documentation requirements.
The Renewable Energy Association of Rajasthan said some banks are making collateral demands for loans under 200,000 Indian rupees ($2,208.87), despite scheme guidelines not requiring them to, which is constraining solar power additions.
State Bank of India and Punjab National Bank, some of the country’s largest lenders, did not reply to requests for comment on the matter.
State-owned utilities are also not promoting rooftop solar as much, as they are concerned about the loss of revenue as sales move off the electric grid.
“Wealthier households typically have high electricity consumption, tariffs and reliable roof access. When they shift from the grid, it leaves a larger financial burden,” said Niteesh Shanbog, an analyst at Rystad Energy.
