EU eyes softening key state aid demand in Brexit talks — sources

Both sides still say they hope to avoid the most economically damaging “no-deal” rupture. (File/AFP)
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Updated 03 August 2020
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EU eyes softening key state aid demand in Brexit talks — sources

  • The 27 EU countries have long demanded so-called “level playing field” guarantees from Britain
  • Prime Minister Boris Johnson’s government refuses to be bound by EU state aid rules

BRUSSELS: The European Union is willing to compromise to help break a deadlock in Brexit talks by softening its demand that Britain heed EU rules on state aid in the future, diplomatic sources told Reuters.
They said Brussels could go for a compromise entailing a dispute-settling mechanism on any state aid granted by the UK to its companies in the future, rather than obliging London to follow the bloc’s own rules from the outset.
Provisions to ensure fair competition pose the biggest stumbling block in the troubled talks aimed at sealing a new trade accord from 2021 following Britain’s exit from the EU in January after 46 years of membership.
The 27 EU countries have long demanded so-called “level playing field” guarantees from Britain if it wants to continue selling goods freely in the bloc’s lucrative single market of 450 million people — after Britain’s standstill transition period following Brexit expires at the end of this year.
Without an agreement, trade and financial ties between the world’s fifth largest economy and its biggest trading bloc would collapse overnight, likely spreading havoc among markets, businesses and people.
But Prime Minister Boris Johnson’s government refuses to be bound by EU state aid rules, environmental standards or labor laws, saying the essence of Brexit was to let Britain decide alone on its own regulations.
Both sides still say they hope to avoid the most economically damaging “no-deal” rupture.

Dispute-settling mechanism
“The room for compromise lies in something that will let the UK decide on its own since ‘regaining sovereignty’ is such a big Brexit thing,” said a EU diplomat close to the Brexit talks.
“We would reserve the right to decide on any consequences vis-à-vis access to the single market for UK companies as a result.”
Another diplomatic source said such a dispute resolution mechanism could be a way to overcome the impasse.
A third diplomat, also speaking on condition of anonymity, acknowledged the EU was ready to ease its earlier demands that Britain agree to a “dynamic alignment” of its competition rules in the future with the bloc’s own.
The person said, however, Britain would still need to agree with the EU on a broad outline of company subsidies policy — rather than specific laws or cases — to allow the bloc to go for such a fix. EU Brexit negotiator Michel Barnier has repeatedly urged London to make its future plans on that known to the bloc.
“There must be a solid framework with independent oversight. If they agree to settle on broad rules for granting state aid and to have this independent institution, then we have a deal,” said the diplomat.


Venezuelans await political prisoners’ release after government vow

Updated 6 sec ago
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Venezuelans await political prisoners’ release after government vow

  • Rights groups estimate there are 800 to 1,200 political prisoners held in Venezuela

CARACAS: Venezuelans waited Sunday for more political prisoners to be freed as ousted president Nicolas Maduro defiantly claimed from his US jail cell that he was “doing well” after being seized by US forces a week ago.
The government of interim president Delcy Rodriguez on Thursday began to release prisoners jailed under Maduro in a gesture of openness, after pledging to cooperate with Washington over its demands for Venezuelan oil.
The government said a “large” number would be released — but rights groups and the opposition say only about 20 have walked free since, including several prominent opposition figures.
Rights groups estimate there are 800 to 1,200 political prisoners held in Venezuela.
Rodriguez, vice president under Maduro, said Venezuela would take “the diplomatic route” with Washington, after Trump claimed the United States was “in charge” of the South American country.
“Venezuela has started the process, in a BIG WAY, of releasing their political prisoners. Thank you!” Trump said in a post late Saturday on his Truth Social platform.
“I hope those prisoners will remember how lucky they got that the USA came along and did what had to be done.”
Maduro and his wife Cilia Flores were captured in a dramatic January 3 raid and taken to New York to stand trial on drug-trafficking and weapons charges, to which they pleaded not guilty.

Anxiety over prisoners

A detained police officer accused of “treason” against Venezuela died in state custody after a stroke and heart attack, the state prosecution service confirmed on Sunday.
Opposition groups said the man, Edison Jose Torres Fernandez, 52, had shared messages critical of Maduro’s government.
“We directly hold the regime of Delcy Rodriguez responsible for this death,” Justice First, part of the Venezuelan opposition alliance, said on X.
Families on Saturday night held candlelight vigils outside El Rodeo prison east of Caracas and El Helicoide, a notorious jail run by the intelligence services, holding signs with the names of their imprisoned relatives.
Prisoners include Freddy Superlano, a close ally of opposition figurehead Maria Corina Machado. He was jailed after challenging Maduro’s widely contested re-election in 2024.
“He is alive — that was what I was most afraid about,” Superlano’s wife Aurora Silva told reporters.
“He is standing strong and I am sure he is going to come out soon.”
Maduro meanwhile claimed he was “doing well” in jail in New York, his son Nicolas Maduro Guerra said in a video released Saturday by his party.
The ex-leader’s supporters rallied in Caracas on Saturday but the demonstrations were far smaller than Maduro’s camp had mustered in the past, and top figures from his government were notably absent.
The caretaker president has moved to placate the powerful pro-Maduro base by insisting Venezuela is not “subordinate” to Washington.

Pressure on Cuba

Vowing to secure US access to Venezuela’s vast crude reserves, Trump pressed top oil executives at a White House meeting on Friday to invest in Venezuela, but was met with a cautious reception.
Experts say Venezuela’s oil infrastructure is creaky after years of mismanagement and sanctions.
Washington has also confirmed that US envoys visited Caracas on Friday to discuss reopening their embassy there.
Trump on Sunday pressured Caracas’s leftist ally Cuba, which has survived in recent years under a US embargo thanks to cheap Venezuelan oil imports.
He urged Cuba to “make a deal” or face unspecified consequences, warning that the flow of Venezuelan oil and money to Havana would stop now that Maduro was gone.
Cuba’s President Miguel Diaz-Canel retorted on X that the Caribbean island was “ready to defend the homeland to the last drop of blood.”
“No one tells us what to do.”
Venezuela’s government in a statement called for “political and diplomatic dialogue” between Washington and Havana.
“International relations should be governed by the principals of international law — non-interference, sovereign equality of states and the right of peoples to govern themselves.”