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German Chancellor Angela Merkel has said Britain must drop any “illusions” it has about negotiating on other issues before it settles its financial commitments to the European Union.

Speaking in the German parliament on Thursday, Merkel said Britain would not retain the same rights once it had left the EU, adding that some in the country still had “illusions, and that is a waste of time.”

The German leader was setting the agenda two days ahead of a Brexit summit that brings together representatives of the bloc’s remaining 27 member states to finalise their negotiating stance and approve EU guidelines on those negotiations.

Report says there are fears that a steep British divorce settlement could become a critical sticking point in the negotiations.

The bill would include liabilities accrued by Britain over four decades of membership and financial commitments made by previous British governments.

Merkel said that Britain would have to clarify “how it sees future relations” with the EU before official negotiations on its exit could begin.

“There is no doubt that Brexit negotiations will demand a lot from Britain and Europe,’’ Merkel told lawmakers.

She said the interests of German and other EU citizens in Britain would be a “central concern” in the negotiations with Britain.

In London, Foreign Secretary Boris Johnson said a reciprocal guarantee of the rights of migrants was also a priority for Britain.

“Britain had offered a unilateral guarantee of the rights of EU citizens in December, but that offer was turned down by Germany,’’ Johnson told newsmen.

Germany has previously denied that it blocked an attempt by Britain to negotiate an agreement on EU citizens before the start of formal Brexit talks.

Louis Grech, deputy prime minister of Malta, which currently holds the EU presidency, said European affairs ministers from the 27 remaining EU member states were united in their full support for draft Brexit negotiating guidelines.

Grech said a meeting of the ministers in Malta on Thursday proved “remarkable in the sense that it was an unprecedented signal of trust, unity and consensus of the 27.”

“I feel that this is a very good start to these complex negotiations ahead of us.

“All delegations agreed with the overall trust of the guidelines and expressed their full support,’’ he said.

The ministerial meeting was aimed at finalising the political guidelines on the terms of Brexit ahead of a summit on Saturday.

The leaders of the remaining EU countries had however planned to officially endorse the document, taking the first major step in the two-year negotiations.

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