As far as I can gather, the EU has only one genuinely non-negotiable red line that could prevent a resumption of talks on a free trade agreement with the UK – which will be made clear by its negotiator Michel Barnier in a telephone call on Monday with the UK negotiator David Frost.
Barnier and the EU are insisting the UK adhere to the EU’s framework for limiting subsidies to businesses, what is called ‘state aid’, and there should be a UK enforcement mechanism for those state aid rules.
The prime minister, counselled on this issue by Dominic Cummings, has been saying this is unacceptable because:
1) Boris Johnson wants the freedom to subsidise as much or as little as he likes.
2) There is no such stipulation in Canada’s trade deal with the EU and the PM thinks it’s only fair the UK should be treated the same way.
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