The European Union and Britain made progress in the latest round of divorce talks, but not enough to move to the next phase of discussions on a transition period after Brexit or a future trade deal, top negotiators say.
"We have had a constructive week, yes, but we are not yet there in terms of achieving sufficient progress. Further work is needed in the coming weeks and months," chief EU negotiator Michel Barnier told reporters, praising a "new dynamic" created by concessions made by Prime Minister Theresa May.
May had hoped that a speech made at Florence would unblock the three-month-old talks and pave the way to open discussions on a post-Brexit free trade deal by allowing Barnier to tell EU leaders that there is "sufficient progress" on three key "divorce" issues - rights for expatriate citizens, the Northern Irish border and how much Britain owes.
Barnier's British counterpart, Brexit Secretary David Davis, said they had made "considerable progress" in four days of talks in Brussels and repeated his eagerness to move on to discuss what happens after Brexit in March 2019.
Barnier highlighted two key areas of disagreement.
First, on citizens' rights, he welcomed a confirmation from Davis that the withdrawal treaty guaranteeing the rights of three million EU citizens in Britain should have "direct effect" in UK law - effectively, Britain cannot change them via new legislation. But the Union continues to demand that people also have the right to pursue grievances at the EU's own court.
Second, Barnier said Britain had clarified that an offer by May that the other 27 states should not lose out financially from Brexit during the current EU budget period ending at the end of 2020 would cover payments only in 2019 and 2020. That, he said, was not enough. Commitments agreed in the current budget also lead to outward payments in subsequent years.
Further on the money issue, which both sides say has become the most intractable, Barnier said Britain had yet to specify which commitments it would honour. The EU has estimated that Britain will owe tens of billions of euros to cover outstanding liabilities.
Davis declined to put a figure on what Britain might pay.
The two sides are due to meet again in just over two weeks, on October 9.
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