Brexit talks 'very positive,’ but issues remain: Theresa May

Britain's Prime Minister Theresa May (L) and European Council President Donald Tusk (R) attend a bilateral meeting during the Eastern Partnership summit at the European Council headquarters in Brussels, on November 24, 2017. (Photo by AFP)

British Prime Minister Theresa May has said Brexit negotiations with European Council President Donald Tusk have been "very positive," but that there are still outstanding issues on the divorce settlement and the border with EU member Ireland.

"There are still issues across the various matters that we're negotiating on to be resolved, but there's been a positive atmosphere in the talks and a genuine feeling we want to move forward together," May said on Friday after holding talks with Tusk on the sidelines of an EU summit in Brussels.

How much Britain should pay when it leaves the European Union is on one of the major sticking points in the talks.

May is reportedly ready to double Britain’s 20 billion euro ($24 billion) offer on the divorce bill in a bid to clear what has been the most difficult obstacle in talks so far. The EU says the exit bill is around 60 billion euros (S$96 billion).

May said the two sides were making progress, but declined to offer any figures on Friday. "I said that we would honor our commitments, and that's what we've been talking about.”

Determining the future of Britain's land border with the EU has been another priority for the bloc, with all sides seeking to avoid a return to a hard border between Northern Ireland and the Republic of Ireland.

Referring to Britain's border with Ireland, May said her government was talking to Irish officials "about solutions for that.”

"We have the same desire. We want to ensure the movement of people and trade across that border can continue as now and we don't create any new barriers to trade or the movement of people across that border,” she said.

The prime minister went on to suggest the two sides were edging towards agreement to move Brexit talks onto a discussion of future trade.

Brexit deal 'possible but still a huge challenge'

Britain's Prime Minister Theresa May and European Council President Donald Tusk attend a bilateral meeting during the Eastern Partnership summit at the European Council headquarters in Brussels, on November 24, 2017. (Photo by AFP) 

But shortly afterwards, Tusk again repeated that Britain had 10 days to make progress on Brexit negotiations in order to begin talks by the end of the year about a future trade deal after the UK’s planned withdrawal from the bloc.

He said that reaching a Brexit deal in December was possible but a "huge challenge.”

"Sufficient progress in Brexit talks at December EUCO (summit) is possible. But still a huge challenge," Tusk said on Twitter. "We need to see progress from UK within 10 days on all issues, including on Ireland."

The EU chief’s warning reflects Brussels’ growing impatience with London over its exit bill, EU citizens’ rights and the Irish border. The EU has for months demanded that Britain make “sufficient progress” on these issues.

EU leaders have been increasingly frustrated about divisions in May's cabinet over Brexit, saying they were still unsure what the UK wanted, even after five rounds of negotiations.

The slow progress of Brexit talks has fueled fears that May's government may collapse, or worse that London may fail to strike a withdrawal agreement with Brussels before its formal exit from the EU on March 29, 2019, which could cause economic and transport turmoil in the UK and EU.