UK's Frost says we are still some way from a deal with EU on subsidies

LONDON (Reuters) - Britain’s Brexit negotiator David Frost said on Wednesday a deal with the European Union on state aid policy was still some way off, but said he welcomed the openness of talks on the subject.

“I feel we’re some way from a deal at the moment, if I’m honest, but we are at least having a decent discussion of this, you know, what is possible and what isn’t possible,” he told a parliamentary committee.

He said any subsidies that are granted “must contribute to public policy or market failure. They must be justified on those grounds, they must be proportionate, there must be openness and transparency about what they are”.

Reporting by Guy Faulconbridge and Kate Holton, writing by William James, editing by Elizabeth Piper