[Albert]

The Telegraph
By Peter Foster, europe editor
19 JUNE 2017 • 7:51PM

Britain and Europe locked horns over the thorny issue of the so-called “Brexit bill” on day one of the talks to begin Britain’s withdrawal from the European Union.

After initial pleasantries for the cameras at the European Commission headquarters in Brussels, David Davis, the Brexit secretary and Michel Barnier, the EU’s chief negotiator and their teams were soon at loggerheads.

 The European Union's chief Brexit negotiator Michael Barnier (R) and Britain's Secretary of State for Exiting the European Union David Davis

One of the biggest disagreements in the coming talks came to the surface after UK negotiators questioned the legal rationale for the €100bn gross settlement that the 27 EU members states are demanding from the UK.

“They question that there is a legal basis for an exit payment," a senior EU official told Reuters, reflecting EU nervousness that Britain will not pay up enough to cover the €10bn euro per year black hole that will be left in EU budgets after Brexit.

UK negotiating sources confirmed that the British side had indeed demanded the EU explain its legal rationale for an opening demand that Philip Hammond, the Chancellor, described last weekend as some of the most “egregious” ever made.

“We asked them to explain what they saw as the legal basis, which is not the same thing as saying there is ‘no legal basis’,” the UK source said. “We asked a large number of questions on the issues.”

The question of the UK financial settlement, along with an agreement on the rights of expats on both sides of the Channel will be the first two items that will be settled in the talks, which will begin in earnest next month.

The two sides agreed that negotiations will be held in four-weekly cycles, with one week each month set aside for face-to face negotiations, with the aim of making “sufficient progress” on these issues to begin trade talks after the EU summit in October.

Mr Davis denied that the UK government had caved in to EU demands to settle money and citizens’ rights before talking trade terms, even though these will now not be discussed until October at the very earliest.

Theresa May will use this week’s European leaders summit in Brussels to brief EU leaders on how the UK intends to treat the 3.2m EU citizens currently in the UK after Brexit, in a bid to kick-start the substantive negotiations on a positive note..

Further details will be contained in a white paper to be published by the British government on Monday, with the key issue on the EU side being how the UK can legally guarantee those rights without submitting to the jurisdiction of the European Court of Justice.

The formal talks opened with attempts on both sides to be positive. Mr Davis promised to be “constructive” while Mr Barnier said that there was no intention to punish the UK, but instead focus on an arranging an “orderly withdrawal”.

The two lead negotiators, who already disagree on many of the fundamental points on Brexit, exchanged gifts that recognised their shared passion in hiking. It did not take long before there were quips on social media about having “mountains to climb”.

Mr Barnier produced a carved walking from his native Savoie for Mr Davis, while the Brexit secretary presented his counterpart and with a signed copy of a classic mountaineering book Regards vers Annapurna, an account of an epic French expedition to the Himalayas in 1950

Once inside the meeting room, Mr Davis, facing his counterpart across a giant horseshoe negotiating table, tried to strike a statesmanlike tone, using his opening remarks to promise that the UK wanted to remain a “committed partner” to the EU.

“This partnership will necessarily look and feel different from membership. But we hope that throughout our close cooperation on trade, and on security will continue as we tackle the the challenges of this and future generations together,” he said.

It did not take long for the mask to slip, however, with Mr Barnier striking an exasperated tone at the end of a long day’s talks, when asked if the EU has made any significant concessions to the British - given that the UK had agree to all the EU’s demands over the schedule for the talks.

"I am not in a frame of mind to make concessions, or ask for concessions,” he said tartly, adding that the EU was only following through on the UK’s own decision to leave, which would have “substantial” consequences. “It is not about punishment, it is not about revenge,” he said.

But it was clear emotions are running high on both sides. "I will do all I can to put emotion to one side and stick to the facts, the figures, and the legal basis, and work with the United Kingdom to find an agreement in that frame of mind,” Mr Barnier added.

Mr Davis, repeating the UK position that any final deal would have to include the outline of a future relationship as agreed under Article 50, chose to quote Winston Churchill in summing up the prospects for a mutually beneficial deal.

“There is no doubt the road ahead will be challenging, but as Winston Churchill said ‘The pessimist sees difficulty in every opportunity. The optimist sees the opportunity in every difficulty.’ And I am certainly an optimist.”

Nigel has something to say as well.

Well Brexit talks has finally begin, the first argument is about money. EU wants money from UK for leaving.