The European Union will reach a Brexit deal with Britain in November if it does not do so this month, European Commission president Jean-Claude Juncker said in an interview published by Austrian newspapers on Saturday.
Juncker said that the potential for a rapprochement between the two sides had grown in the last few days, echoing what diplomatic sources have told Reuters.
โWe are not there yet. But our will to reach an understanding with the British government is unbroken,โ he was quoted as saying by Der Standard and Kurier and Der Falter.
โWe have to get away from this no-deal scenario. It wouldnโt be good for Britain or for the rest of the (European) Union,โ
โMy assumption is that we will reach an accord which will achieve the conditions of the withdrawal treaty,โ Juncker said, adding that it was not possible to predict whether there will be a conclusion to the Brexit negotiations in October.
โIf not, then we will do it in November.โ
EU Brexit negotiators believe a divorce deal with Britain is โvery closeโ, diplomatic sources told Reuters, in a sign a compromise on the most contentious issue โ the future Irish border โ might be in the making, although details were scarce.
On Friday, EU Brexit negotiators told ambassadors of the 27 states remaining in the bloc that there was no breakthrough on the Irish issue and much would depend on what their British counterparts bring to Brussels next week.
Juncker told the Austrian papers that a political declaration on future relations between Britain and its former European partners was needed accompanying the Brexit deal.
โYou canโt absolutely keep separate the withdrawal treaty and the declaration of the future relationship between the United Kingdom and Europe,โ he said.
Britain and the EU are trying to push the divorce deal as well as an agreement on post-Brexit relations in time for two leadersโ summits scheduled for Oct. 17-18 and Nov. 17-18.
WITHOUT ANGER
Asked about Italyโs budget plans, Juncker said it was up to Italian policymakers to find rules and measures that will allow Italy to remain within agreed budgetary targets.
โWe will assess the Italian budget without anger and fondness and propose changes if necessary,โ he added.
The Italian government this week unveiled the core of its expansionary multi-year budget plan, raising the target for the fiscal deficit to 2.4 percent of gross domestic product in 2019.
The deficit is projected to ease gradually in the next two years to 2.1 percent and then 1.8 percent, while remaining far above targets previously agreed with the European Commission.
The targets are a โsource of serious concernโ, the European Commission said in a letter to Italyโs Economy Minister Giovanni Tria which called on Rome to ensure that the budget will be โin compliance with the common fiscal rulesโ.