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U.K. Tries to Unblock Brexit Talks With New State Aid ProposalsBrussels rebuffs British move, saying plans are insufficientTalks unlikely to head into so-called tunnel at end of week The U.K. sought to unblock stalled trade negotiations with the European Union by submitting a new round of proposals on how its state aid rules will work after Brexit, according to two people familiar with the negotiations.But London’s offer still doesn’t go far enough, according to a diplomat in Brussels, who said insufficient progress has been made for the talks to head into the intense phase -- known as a tunnel -- at the end of the week.EU diplomats were briefed on the proposals by the Commission on Monday. According to one, the EU’s executive arm told them the U.K.’s latest paper on state aid marks only a slight improvement from earlier drafts.Time is fast running out for the two sides to reach an agreement in time for a summit of EU leaders that begins on Oct. 15 -- Prime Minister Boris Johnson’s self-imposed deadline for a deal.If an accord isn’t in sight by then, Britain would be all but certain to crash out of the EU’s single market at the year-end without a trade deal in place, potentially poisoning relations with the bloc for a generation and submitting business to the cost and disruption of trade tariffs and quotas.The document is among five confidential draft legal texts the U.K. submitted to the bloc as the two sides’ chief negotiators hold their final scheduled round of discussions in Brussels this week. The others included texts on fisheries, law enforcement, energy and mobility and social security coordination

James Smith-Jones ● 2223d