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@Greenbank
The EU are holding that position to weaken the UK's negotiating power. Similarly the "there are no pre-negotiations, they must submit their Article 50 and get this started" line.
The biggest bargaining chip the UK has is the £8bn net contribution it makes to the EU each year. That's a considerable hole to be filled in and the other remaining 27 countries would need to cover it or take a hit themselves.