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'Flexibility and imagination' needed for new Brexit talks, says David Davis

As formal talks resume, David Davis is pushing to broaden discussions to the post-Brexit relationship between the UK and EU.

David Davis reports to media following commencement of Brexit talks
Image: Brexit Secretary David Davis wants to broaden discussions beyond the divorce
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David Davis has called on the EU to demonstrate "flexibility and imagination" as the third round of Brexit talks begins in Brussels.

The Brexit Secretary wants to broaden discussions beyond our divorce from the European Union to include future trade relations.

And while both sides accept progress has been made on the issues of citizens' rights, the Irish border and the so-called "divorce bill", the European Union insists there has not been enough progress.

Michel Barnier, the EU's chief negotiator, is understood to be infuriated at Britain's refusal even to spell out how it thinks its liabilities to the EU should be calculated, let alone put a figure on the final bill.

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Britain has accused Brussels of "massively over-egging" its financial demands, which have been estimated at between £50-£80bn.

The EU has also accused the UK of "magical thinking" on its solutions to providing a frictionless border in Ireland.

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But Mr Davis hopes the series of papers produced by his Department for Exiting the EU over the past fortnight demonstrate that our divorce from the European Union is inextricably linked to our future relationship.

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Big net migration fall since Brexit vote

As he opens discussions, the Brexit Secretary is expected to say he wants to agree a deal which is in the best interests of both sides, and expects the four days of talks to be "constructive".

"For the UK, the week ahead is about driving forward the technical discussions across all the issues.

"We want to lock in the points where we agree, unpick the areas where we disagree, and make further progress on a range of issues.

"But in order to do that, we'll require flexibility and imagination from both sides."

He will add: "Our goal remains the same. We want to agree a deal that works in the best interests of both the EU and the UK, and people and businesses right across Europe.

"And we're ready to roll up our sleeves and get down to work once more."

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Labour shifts towards a soft Brexit

Talks resume on Bank Holiday Monday against the backdrop of a dramatic shift in policy from Labour, which has announced it would keep Britain inside the EU's single market and customs union during a transition period expected to last as long as four years following the official date for Brexit in 2019.

Shadow Brexit secretary Sir Keir Starmer has made it clear that Labour's plans would mean the UK observing EU rules allowing free movement of people and barring trade talks with non-EU states during this period.

The Conservatives have accused Labour of "a weak attempt to kick the can down the road", but Jeremy Corbyn said Government "confusion" had left Mr Davis "in danger of wandering into a cliff-edge Brexit" in the Brussels talks.

Former European Commissioner Lord Mandelson told the Financial Times that Labour had "done Parliament and the public a big favour" by giving opponents of a hard Brexit - including some on the Tory backbenches - an opportunity to unite around measures to delay departure from the single market until the shape of the new relationship becomes clear.

Liberal Democrats announced they would table an amendment to the EU Withdrawal Bill to allow MPs to vote for continued single market membership when the Commons returns from its summer break in September, and challenged Labour to back it.