Defiant EU chiefs threaten to REFUSE trade deals with UK if we don’t cough up £38billion Brexit cash

EU chiefs have threatened to REFUSE trade deals with the UK if we don’t cough up £38billion in Brexit cash.
Guy Verhofstadt fired off the warning after Boris Johnson told Brussels we won’t pay a whopping divorce bill if there is a No Deal Brexit.
Verhofstadt, the European Parliament's Brexit co-ordinator, fumed on Twitter: “If the UK doesn't pay what is due, the EU will not negotiate a trade deal.
“After a "No Deal", this will be a first condition of any talks. Britain is better than this."
Officials in Brussels said the UK must honour commitments made during its EU membership and pointedly said that "settling accounts is essential to starting off a new relationship on the right foot".
EU WARNINGS
European Commission spokeswoman Mina Andreeva said: "All commitments that were taken by the 28 member states should be honoured and this is also and especially true in a no-deal scenario where the UK would be expected to continue to honour all commitments made during EU membership.
"Rather than going now into a judicial action threat, I think it is important to make clear that settling accounts is essential to starting off a new relationship on the right foot based on mutual trust.
If the UK doesn't pay what is due, the EU will not negotiate a trade deal. After a 'No Deal', this will be a first condition of any talks. Britain is better than this.
Guy Verhofstadt
"I would also say that as far as I understand this issue has not been raised with the EU side, for the time being, officially."
The warnings come after the Prime Minister said if there is No-Deal "the £39 billion is no longer legally pledged" to the EU.
But while Boris talks tough to EU leaders at the G7 in Biarritz, the government’s lawyers have been working on what would happen if Britain are forced to cough up the mammoth sum.
The Brexit legal team have been studying a “range of scenarios” - as No10 prepares for No Deal, reports.
Boris held fresh talks with European Commission boss Tusk on Saturday morning and warned the chances of No Deal were now "touch and go".
TOUCH AND GO
Boris said in a clip to Sky News this lunchtime: "I think what the entire European Union understands if we come out without a deal, the £39bn is not pledged.
"They understand that if there isn't a deal, then the £39bn is no longer legally pledged."
And he told the BBC: "I think it's going to be touch and go but the important thing is to get ready to come out without a deal."
But he did admit that the chances of getting a deal are "improving" and said he's had "some success" in European talks this week.
Just a few weeks ago Boris said the chances of a No Deal were "a million to one".
NO DEAL FEARS
Over the weekend, the PM promised that if there was a No-Deal Brexit people would still be able to get their medicine - playing down scare stories that Brits could be in danger due to customs problems at ports.
He said: "That is certainly a guarantee that we can make."
And on reports of food shortages he insisted: "I think it's highly unlikely that there will be food shortages of any kind."
Yesterday, Johnson and Mr Tusk clashed over who would be to blame if the UK were to leave the European Union without a deal in October 31.
On the way to Biarritz, Mr Johnson had told reporters: "I have made it absolutely clear I don't want a no-deal Brexit.
"But I say to our friends in the EU if they don't want a no-deal Brexit then we have got to get rid of the backstop from the treaty.
"If Donald Tusk doesn't want to go down as 'Mr no-deal Brexit' then I hope that point will be borne in mind by him too."
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He said he had discussed the problems with Mr Trump in an eve-of-summit phone call, and highlighted barriers to the sale of British goods including shower trays, cauliflowers and Melton Mowbray pork pies.
"It goes without saying that there are sectors of the UK economy, not least the NHS, which remain completely off limits as far as any trade deal with America goes.
"We will not allow the NHS to be on the table at all," he added.
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