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Britain will go through EU financial commitments line by line, vows Theresa May

British Prime Minister Theresa May, right, arrives for a meeting with European Council President Donald Tusk during an EU summit in Brussels 
British Prime Minister Theresa May, right, arrives for a meeting with European Council President Donald Tusk during an EU summit in Brussels  British Prime Minister Theresa May, right, arrives for a meeting with European Council President Donald Tusk during an EU summit in Brussels 

Britain is set to go through its financial obligations to the European Union "line by line" to give the other 27 states a clearer idea of how much it will be willing to pay in a Brexit divorce bill.

At the European Council summit in Brussels, Theresa May repeatedly dodged pressure to put a figure on the payment, saying a "full and final settlement" will not emerge until agreement is reached on all aspects of Brexit, including the future EU/UK trade relationship.

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But she indicated that steps were being taken to deliver the clarity which other EU leaders have been demanding on the way in which the UK is calculating its liabilities - estimated in Brussels at about €60 billion (£53 billion).

Mrs May's comments came as the EU27 agreed to begin internal scoping work on their position on trade, in preparation for a possible start in December to the second stage of formal negotiations with the UK, dealing with the transition to a future relationship.

The leaders took just 90 seconds to approve the move in Mrs May's absence, with Council president Donald Tusk announcing in a tweet: "Brexit conclusions adopted. Leaders green-light internal EU27 preparations for 2nd phase."

In their formal conclusions, the EU27 said they aimed to move to the second phase "as soon as possible" and would reassess the state of progress at the next summit on December 14-15. But they noted that Britain has so far made no "firm and concrete commitment" to settle all of its obligations.

Asked whether she would deliver further details on the divorce bill in time to ensure a breakthrough at the next summit, Mrs May said: "What we are doing as we look across the weeks coming up to the December Council is looking at a range of issues ... On the financial issue, we will be going line by line through those commitments.

"I'm positive and optimistic about where we can get to in relation to the future partnership that we want with the EU, because it is not only in the interests of the British people, it is in the interests of people across the remaining 27 members of the EU as well."

She indicated that Britain will be ready to pay "relevant costs" of continued participation in EU projects in areas like science, research and criminal justice, but made clear that an overall figure cannot be expected before the shape of the final deal is known - something that is not expected before autumn 2018.

"The full and final settlement will come as part of the final agreement that we are getting in relation to the future partnership and I think that's absolutely right, I think that can only be done in that particular context," said Mrs May.

As expected, the EU27 backed chief Brexit negotiator Michel Barnier's assessment that insufficient progress has been made in divorce talks for trade discussions to start now, as Britain had hoped.

But Mrs May was able to take consolation from positive noises from her fellow leaders, with German Chancellor Angela Merkel describing progress as "encouraging" and saying she saw no reason why there should not be a good outcome.

Other leaders did not attempt to hide their frustration at Britain's delay in providing clarity about Mrs May's promise, in her speech in Florence last month, that the UK would honour its financial obligations.

Dutch Prime Minister Mark Rutte said the EU27 need "more meat on the bone", while Lithuanian President Dalia Grybauskaite said Mrs May had done little more in her speech over dinner on Thursday than repeat excerpts from her speech in Italy and now needed to move "from words to real deeds".

Mrs May acknowledged there was still "some way to go" in divorce talks, but said the two sides were "within touching distance" of a deal over the rights of EU nationals in the UK and Britons living on the continent.

In a possible sign that Britain is responding to EU concerns about the resettlement rights of expats' family members, the PM said: "Whatever happens, we want them and their families to stay."

Mrs May said: "I am ambitious and positive for Britain's future and for these negotiations.

"But I know we still have some way to go. Both sides have approached these talks with professionalism and a constructive spirit and we should recognise what has been achieved to date."

Pressed on reports that the British government was planning an "upbeat" assessment of a no-deal scenario, Ms May said: "I have been clear that we have been working for a good deal and I am optimistic about getting that.

"But, as I have said, and others have said consistently, it would be irresponsible for the British Government not to look across at the changes that will be necessary regardless of the eventuality."

A decision in December on whether to move on to trade talks will depend on the UK making further commitments, particularly on the financial settlement, Mrs Merkel said.

"We would hope that we will be ready by December to initiate phase two," she said, but "this depends to a large extent" on the UK.

"The topic of financial commitments is the dominating issue in that regard," the German leader added.

Mr Tusk told a closing news conference that the reported difficulties in the negotiations appeared to have been overstated and he hoped they would be able to move to the second phase at the next EU summit in December.

"My impression is that the reports of the deadlock between the EU and the UK have been exaggerated. While progress has not been sufficient, it doesn't mean there has been no progress at all," he said.

"The negotiations go on and we will continue to approach them positively and constructively. I hope that we will be able to move to the second phase of our talks in December."

Mr Tusk said he wanted to create "positive momentum" in the Brexit talks.

"I want to be the positive motivator for the next five or six weeks because our ambition is to achieve this, the final of the first phase in December. And for this we need also, maybe, more positive narrative."

Mr Tusk said he was not at odds with Mr Barnier, who has described the Brexit talks as deadlocked.

"What was my feeling today, also during my meeting before our session, my tete-a-tete with Prime Minister Theresa May, I feel that, for sure, both sides present only goodwill, and this is why I, maybe, in my rhetoric, I'm, maybe, a little bit more optimistic than Michel Barnier, but we are also in a different role.

"Michel Barnier is responsible for the negotiations, I am more responsible, first of all for our unity, but also for a good atmosphere and positive mood. This is the only difference."

European Commission president Jean-Claude Juncker said he hoped it would be possible to reach a "fair deal" with Britain.

He said that, prior to the current summit, no-one on the UK side had explained the consequences if they failed to reach an agreement.

"Our working assumption is not the 'no-deal' scenario. I hate the 'no-deal' scenario. I don't know what that means," he said.

"Nobody was explaining 'til today what the consequences would be of a total 'no-deal' arrangement. I am not in favour of 'no deal'. I want to have a fair deal with Britain."

French President Emmanuel Macron said Mr Barnier had told the EU27 that the UK "still had to make a substantial financial effort".

Mr Macron said: "We are far from where we should be in this respect.

"If, as Prime Minister May said in Florence, we want to make sure that no-one will have to pay more or receive less, and if we want to make sure the UK will comply with all its commitments made as a member of the EU ... I would say we are far from having reached the necessary financial commitments before we can open phase two.

"I can only underline how much work needs to be done."