BERLIN, Aug. 28 (Xinhua) -- German business representatives have criticized Britain's approach to Brexit negotiations as talks resume in Brussels on Monday. Dieter Kempf, president of the Federation of German Businesses (BDI) expressed concerns that the "...British government still lacks a clear strategy."
Kempf warned that there was no convincing reason to expect any progress in the stalling Brexit negotiations as long as London maintained the positions which had already been rejected as unrealistic by the European Union (EU).
The meeting between EU and British representatives later on Monday will mark the start of the third round of negotiations since Britain voted to leave the bloc in June 2016.
The round in June saw Britain accede to the EU's proposed timetable but resulted in little progress.
EU politicians are insisting that London settle its outstanding financial obligations, the rights of EU citizens, and the status of the Irish border before talks can progress to shape a potential new trade agreement.
New position papers from Britain have been met with intense skepticism in Brussels, leading the European Parliament's chief negotiator Guy Verhofstadt to accuse British politicians of "magical thinking.
BDI chief Kempf echoed this pessimistic view with regards to British proposals for a future customs agreement. "The British customs proposals would entail a disproportionately high bureaucratic effort," Kempf lamented. "These ideas are impractical for businesses. The United Kingdom must finally make a clear statement on the terms of its exit."
Speaking in the German newspaper Die Welton Monday, Verhofstadt reiterated warnings that the EU would only progress to discuss a future relationship when initial "core elements," including a financial settlement from Britain estimated to be as high as 100 billion euros (119 billion U.S. dollars), had been dealt with to a satisfactory degree.
"The clock is ticking", Verhofstadt warned with reference to the narrow two-year window of negotiations.
In turn, the British government has asked the EU to show "more flexibility" in negotiations.
British Prime Minister Theresa May's conservative cabinet has struggled to contain internal divisions over what Brexit strategy to pursue after recently losing its majority in a snap election.
On Sunday, the opposition Labour Party reversed an earlier stance by backing calls from business leaders and trade unions for continued membership of the European Union's single market and customs union during a transition period.
Keir Starmer, the Labour Party's shadow secretary of state for exiting the European Union, warned in the newspaper The Observer that a so-called cliff-edge Brexit would do serious harm to the British economy. He consequently refused to rule out the possibility of abiding by EU jurisdiction and paying into EU budgets to ensure continued preferential trade access after formally leaving the bloc.
Meanwhile, a report by the German lobby group Frankfurt Main Finance recently predicted that the country's banking hub could witness the creation of over 80,000 new jobs as a consequence of Brexit. Up to 10,000 financial service roles would be added in the next four years alone as the exodus of financial institutions from London intensified.
Frankfurt has emerged as a major beneficiary of Brexit, with several international banking institutions announcing the opening of new EU offices or bolstering of their existing presences in the city to avoid potential trade barriers.
