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UPDATE 1-Significant work to do, but Brexit deal still possible - UK PM Johnson

Sun, 13th Oct 2019 15:21

* Pathway to a deal still exists, PM Johnson tells cabinet

* UK-EU talks are taking serious turn

* EU summit on Oct. 17-18
(Recasts with Johnson cabinet update)

By William James

LONDON, Oct 13 (Reuters) - British Prime Minister Boris
Johnson told his cabinet on Sunday a last-minute Brexit deal was
still possible but there was significant work to be done to
reach one, as intensive talks with the European Union entered
their most critical stage.

In a pivotal week that could decide the future of Brexit and
the fate of the world's fifth largest economy, Johnson is trying
to strike an exit deal with the EU to allow an orderly split
with its biggest trading partner on Oct. 31.

But Johnson must navigate the complexities of EU politics to
strike a deal at an Oct. 17-18 EU summit and then try to
convince a deeply divided British parliament on Oct. 19 to
ratify any deal.

If he succeeds, Britain will leave the bloc on Oct. 31 with
arrangements to minimise disruption at borders and preserve the
complex supply chains that underpin swathes of the economy.

If he fails, Britain faces an uncertain future - lawmakers
will begin a battle to delay Brexit that could end up being
decided in the courts, while Johnson will fight for a no-deal
exit at the end of the month to ensure his political survival.

British and EU negotiators are working through the weekend
see if they can turn proposals put forward by Johnson, and
initially rejected by the EU, into a deal that works for both
sides.

Earlier, Johnson briefed cabinet members on progress in
those talks by conference call.

"The prime minister updated cabinet on the current progress
being made in ongoing Brexit negotiations, reiterating that a
pathway to a deal could be seen but that there is still a
significant amount of work to get there and we must remain
prepared to leave on October 31," a spokeswoman from his office
said.

"The Prime Minister said there was a way forward for a deal
that could secure all our interests."

If Britain leaves the EU without a deal, many expect serious
short-term disruption with possible food, fuel and medicine
shortages, and long term damage to Britain's reputation as a
safe and stable home for foreign investment.

The government says it is doing everything it can to get a
deal, and that it has contingency plans to mitigate the impact
of a no-deal exit.

Ireland has proved the toughest issue in the Brexit talks:
specifically how to prevent the British province of Northern
Ireland becoming a backdoor into the EU's markets without having
border controls.

Ireland fears controls on the 500-km (300-mile) border with
Northern Ireland would undermine the 1998 Good Friday Agreement
which ended three decades of sectarian and political conflict
that killed more than 3,600 people.

A WEEK IS A LONG TIME

To leave with a deal on Oct. 31, Johnson has just days to
convince the EU to accept a compromise on border arrangements
and then get leaders to sign off on a deal at an Oct. 17/18 EU
summit in Brussels, likely to last late into the night.

Although the talks have made more progress than many
expected a week ago, sources in Johnson's office have said that
a deal remains a long way off, echoing caution on the EU side of
the negotiations.

The Sunday Times reported that Johnson will speak to German
Chancellor Angela Merkel, French President Emmanuel Macron and
European Commission President Jean-Claude Juncker by the end of
Monday.

If successful in Brussels, Johnson then has to win a vote in
the divided parliament that rejected his predecessor Theresa
May's deal three times earlier this year. A vote is expected to
take place in a rare Saturday session of parliament on Oct. 19.

Since becoming prime minister in July, Johnson has yet to
win a vote in parliament and, after kicking 21 lawmakers out of
his party for not backing his Brexit plans, is well short of a
majority.

While his opening bid in the latest phase of negotiations
with the EU received cautious endorsement at home that suggested
it could find the necessary support in parliament, much will
depend on the final shape of any deal.

The three main opposition parties - Labour, the Scottish
National Party and Liberal Democrats - are expected to oppose
it.

That leaves Johnson's hopes pinned to a group of Labour
rebels and the small party which notionally keeps him in power,
Northern Ireland's Democratic Unionist Party.

The DUP position is unclear, after the party's deputy leader
Nigel Dodds said the mooted eleventh-hour solution to the
deadlock over Brexit could not work.
(Reporting by William James; editing by Guy Faulconbridge and
Deepa Babington)

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