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EU's Brexit negotiating stance revealed by European Council President Donald Tusk EU's Brexit negotiating stance revealed by European Council President Donald Tusk
(35 minutes later)
European Council President Donald Tusk has set out the EU's draft negotiating position, making clear that Britain must settle its divorce from Europe before talks on future relations. Donald Tusk has set out the EU's draft negotiating position, making clear that Britain must start to deal with its divorce from Europe before talks on future trade terms.
The nine-page document flies in the face of Theresa May's call for talks on withdrawal and future trade terms to take place at the same time. The European Council President's nine-page document states that there must be "sufficient progress" on withdrawal talks - including a 'divorce bill' potentially running as high as £50bn - before negotiations on future relations begin.
The guidelines paper, which sets the scene for two years of tough Brexit talks, has now been sent to European capitals before a full negotiating mandate is cemented at a summit on April 29.  The guidelines also make clear the EU is willing to consider a "transitional" deal after Brexit and is also ready for talks to fail.
The draft sets out a staged approach to talks with the first part dealing with disentangling existing relations between London and Brussels, a phase which will also settle the UK's 'divorce bill', running by some estimates as high as £50bn. It comes after Theresa May triggered Article 50 on Wednesday with a letter calling for withdrawal and trade talks to start at the same time, while sparking anger by linking security co-operation to future trade bargaining.
The second part will begin to set a framework for future negotiations including a potential trade deal, while the third part will deal with the transition from the old to the new relationship.  Mr Tusk's document said: "In these negotiations the Union will act as one. It will be constructive throughout and will strive to find an agreement. This is in the best interest of both sides.
More to follow... "The Union will work hard to achieve that outcome, but it will prepare itself to be able to handle the situation also if the negotiations were to fail."
The draft sets out a staged approach to talks, with the first part dealing with disentangling existing relations between London and Brussels. This will be the moment that both sides will settle how much the UK's "obligations" are, in terms of a divorce bill.
The move flies in the face of Ms May's call for talks on withdrawal and future trade terms to start at the same time, but does leave open the possibility of them eventually taking place in tandem as long as divorce talks advance.
The second part of the EU's process will begin to set a framework for negotiations on a potential trade deal, while the third part will deal with the transition from the old to the new relationship.
The paper, which sets the scene for two years of tough Brexit talks, has now been sent to European capitals before a full negotiating mandate is cemented at a summit on April 29. 
The guidelines will form the basis of a mandate for chief EU negotiator Michel Barnier, who expects to launch negotiations in early June.
It means he will have some 16 months to conclude the basics of a withdrawal treaty and future relations framework that can then be ratified by lawmakers on both sides in time for Brexit on March 29, 2019.
The guidelines put no timeframe on how long a potential transition between Brexit and a new relationship should last, though many EU officials believe it could be between two and five years.