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Brexit talks hit deadlock over 'fundamental differences'

Talks between the EU and Britain appear to have stalled following the first week of Brexit negotiations.

European Commission chief negotiator Michel Barnier told a joint news conference with Britain’s Brexit Secretary David Davis on Thursday afternoon that there is a “fundamental divergence” between the two parties over how to guarantee the rights of European citizens, with the EU seeing “no alternative” to the European Court of Justice overseeing their enforcement.

The British government has refused to budge on this issue, insisting UK courts should be the final arbiter.

Barnier also called on the UK to clarify its position on a financial settlement and the Irish border.”As soon as the United Kingdom is prepared to clarify the nature of its commitments we will be prepared to discuss this with the British negotiators,” he said.

Davis said the first round of talks had been “robust but constructive” but that there was “a lot left to talk about.”

This comes after senior officials quoted by the Times said a lack of progress on citizens’ rights and the divorce bill have hindered the opening bout of talks.

UK officials also indicated to The Guardian that the EU’s reluctance to discuss the rights of British people living in EU member states until they receive a reciprocal offer from the UK was a cause of concern. Some 1.2 million Brits live in the EU and could be affected should the EU refuse to guarantee, for instance, that a British national living in Paris could move freely to Berlin or another EU member state after Brexit.

The negotiations have focused on so-called “phase one” issues of separation – including a financial settlement, citizens’ rights, the Irish border and Britain’s position in relation to Europe’s civil nuclear regulator, Euratom.

The apparent deadlock in negotiations comes as Liam Fox, the International Trade Secretary, insisted Britain can “survive” without a post-Brexit trade deal with the EU.

Foreign Secretary Boris Johnson told Parliament last week that the EU’s financial demands “seem to be extortionate”, suggesting Brussels could “go whistle” if it wants more money from the UK.

But Johnson also said the chances of Britain walking away from talks without a deal were “vanishingly thin”. In contrast his colleague Fox, speaking Thursday, maintained that while the Government wants a deal, Brussels should know the UK is prepared to walk away without one.

“We don’t want to have ‘no deal’, it is much better that we have a deal than no deal”, he told BBC Radio 4’s Today programme. “We can of course survive with no deal and we have to go into a negotiation with those on the other side knowing that’s what we think.”

MORE: Brexit no-deal will spawn ‘legal morass and economic disaster’

Despite warning of Britain’s willingness to leave the bloc without an agreement, Fox insisted that a post-divorce trade deal should be “one of the easiest in human history” to reach. “The only reason that we wouldn’t come to a free and open agreement is because politics gets in the way of economics”, Fox said.

Asked about the future of Prime Minister Theresa May, Fox said he expects her to remain in power for the duration of the Parliament. He urged colleagues not to let speculation about May’s future to get in the way of the “historic” Brexit task facing the country.

“I don’t think there is anything to be gained by speculation about leadership”, said Fox.

“We have got a job to do, we have got a very big task, a historic task, and that is what we should concentrate on.”

Fox’s bullishness on the virtues of a no-deal Brexit stand in stark contrast to his cabinet colleague Philip Hammond. The Chancellor said last month that leaving the EU without a deal would be a “very, very bad outcome.”

Hammond claims to have been the subject of some rather unkind briefing from potential leadership rivals after a number of damaging stories about him were published over the last few weeks. The maneuvering led May to warn that no cabinet members were “unsackable.” Asked if he was confident of keeping his job, Fox demurred: “I wouldn’t predict anything in the future, in politics you never know what’s going to happen next.”

Fox is currently in Geneva to meet with World Trade Organization boss Roberto Azevedo to discuss Britain’s post-Brexit arrangements. He is expected to meet with U.S. officials in Washington early next week to begin exploring a possible free trade agreement between the countries after Brexit.