EU Brexit chief preparing for 'possible' failure

EU Brexit chief Michel Barnier yesterday said he is making contingency plans for the "possible" failure of divorce talks with Britain, which he has given two weeks to reach preliminary agreement on key issues.

"It's not my (preferred) option," he told French weekly Le Journal du Dimanche (JDD). "But it's a possibility. Everyone needs to plan for it, member states and businesses alike. We too are preparing for it technically."

He recalled that without a deal on post-Brexit trade terms the EU and Britain would revert to World Trade Organization (WTO) tariffs, with trade ties "like those we have with China".

On Friday Barnier gave Britain a two-week ultimatum to make concessions on a divorce agreement if it wants to unlock the next phase of talks in December.