Negotiators have repeatedly failed to agree on the terms of the Brexit bill, citizens’ rights and the Irish border. The EU has ruled out discussing trade with the U.K. unless these points are satisfied.
“With every week that goes by without real progress — for instance, on a transition period — anxiety among businesses and markets will increase,” Rem Korteweg, head of the Europe in the World unit at Clingendael Institute in the Netherlands, told CNBC.
“This will raise pressure on the U.K. government to compromise on, for instance, the Brexit bill. This could offer the breakthrough needed to move the talks to ‘phase 2’ (trade) by December. But there is little certainty this will indeed happen,” he said.