European Commission President Ursula von der Leyen arrives for an EU summit at the European Council building in Brussels, Dec 10, 2020. (JOHN THYS / POOL VIA AP)

BRUSSELS/LONDON - The European Union’s executive on Thursday laid out contingency plans for a "no-deal" Brexit at the end of the year to minimize disruption to air traffic and road and rail travel after talks between British and EU leaders failed to break an impasse.

The European Commission also proposed that Britain and the EU continue to offer reciprocal access to their fishing waters for up to a year, but London quickly rebuffed the idea.

The European Commission also proposed that Britain and the EU continue to offer reciprocal access to their fishing waters for up to a year, but London quickly rebuffed the idea

Agreement on fishing rights has been one of the most emotive sticking points in negotiations for a trade deal that has eluded the two sides since the United Kingdom formally left the EU in January after 47 years of membership.

Investment banks on Thursday cut the chances of an agreement by the Dec 31 deadline, and bookmakers slashed the odds to 50 percent.

Britain warned the European Union on Thursday that it must make significant concessions to break the impasse in Brexit trade talks by the end of the weekend to give some finality to the five year Brexit crisis.

Prime Minister Boris Johnson and the EU’s chief executive, Ursula von der Leyen, gave themselves until Sunday to decide on their next steps after failing to overcome persistent rifts over a “lively” dinner of turbot on Wednesday.

Hanging tough, Britain told the EU on Thursday it should make significant concessions to break the deadlock by the end of the weekend for clarity about the finale to the five-year-old Brexit crisis.

European Commission President Ursula von der Leyen, right, speaks with British Prime Minister Boris Johnson prior to a meeting at EU headquarters in Brussels, Dec. 9, 2020. (OLIVIER HOSLET / POOL VIA AP)

“There’s still clearly some scope to keep talking but there are significant points of difference that remain,” Foreign Secretary Dominic Raab told BBC TV.

Prime Minister Boris Johnson and the European Union’s chief executive gave themselves until the end of the weekend to seal a new trade pact after failing to overcome persistent rifts over a “lively” dinner of turbot on Wednesday

“Sunday I think is an important moment,” Raab told Sky News. “You never say never in these talks, but I think we do need to get some finality.”

Raab said the main points of contention - fisheries and commitments on a level playing field - were narrow in scope but they were matters of principle for Britain.

Responding to the EU’s proposal to temporarily freeze the current arrangement of shared access to fishing waters, a UK government spokeswoman said: “We would never accept arrangements and access to UK fishing waters and which are incompatible with our future status as an independent coastal state.”

Softening the blow

Britain has been in a transition period since it left the EU, remaining in the EU’s single market and customs union with rules on trade, travel and business that have stayed the same.

ALSO READ: UK, EU leaders say conditions for Brexit trade deal 'not there'

Failure to agree new rules to govern everything from car parts to Camembert would snarl borders, shock financial markets and sow chaos through supply chains in a world already grappling with the economic cost of COVID-19.

The European Commission said it was still seeking a trade agreement but could soften some of the disruption predicted as Britain leaves the EU’s orbit.

ALSO READ: EU tells Johnson to decide as time runs out for Brexit deal

“While a ‘no-deal’ scenario will cause disruptions in many areas, some sectors would be disproportionately affected due to a lack of appropriate fall-back solutions,” it said.

It proposed keeping “certain air services” between Britain and the EU for up to six months, provided London ensures the same. Air safety measures would continue to be recognized, to avoid grounding aircraft.

Basic connections by road freight and for road passengers would also continue for six months as long as it was reciprocal.

Britain will examine the proposals, the spokeswoman said.

Johnson portrays Brexit as a chance to give Britain a fully independent, more agile economy. EU powers fear London wants the best of both worlds - preferential access to EU markets but with the advantage to set its own rules.

That, they say, would undermine the post-World War Two project which sought to bind the ruined nations of Europe - and particularly Germany and France - into a global trading power.

READ MORE: Brexit: UK scraps lawbreaking clauses in deal boost

The EU wants Britain to remain tied to the bloc’s labor, social and environmental standards in the future, as well as to state aid rules for corporate state subsidies.