Brexit news latest: Donald Tusk says EU will treat Chequers plan as 'step in right direction' after Theresa May's defiant speech

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Donald Tusk has said the EU will treat the Chequers Brexit plan as a “step in the right direction out of respect for Theresa May” and that he is convinced a “compromise” is still possible.

The European Council President's remarks come after the UK Prime Minister delivered a defiant ultimatum to EU leaders from No 10 this afternoon, saying she would offer no more concessions until they give ground.

But Mr Tusk has since said he had made his statement warning Chequers would not work after Mrs May took a stance at Salzburg that was "surprisingly tough and in fact uncompromising".

British Prime Minister Theresa May makes a statement on Brexit negotiations with the European Union, at 10 Downing Street in London on Friday
AP

He said in a statement: "The response of the EU27 leaders was to reiterate our trust in chief negotiator Michel Barnier and to reiterate our position on the integrity of the Single Market and the Irish backstop.

"While understanding the logic of the negotiations, I remain convinced that a compromise, good for all, is still possible. I say these words as a close friend of the UK and a true admirer of PM May."

Brexit negotiations: Prime Minister Theresa May with European Council Preisdent Donald Tusk
Getty Images

He opened the statement by saying that the EU and its leaders "fully respect the UK's decision expressed in the referendum on leaving the EU" and added that it was important to create "the best possible relations for the future".

"We studied the Chequers proposals in all seriousness," he said.

"The results of our analysis have been known to the British side in every detail for many weeks.

Under pressure on Brexit: Theresa May at the European Union leaders informal summit in Salzburg (REUTERS)
Reuters

"After intensive consultations with Member States, we decided that for the good of the negotiations, and out of respect for the efforts of PM May, we will treat the Chequers plan as a step in the right direction."

In a statement from No. 10 on Friday afternoon, Mrs May had declared: "We are at an impasse.” In a terse tone, Mrs May accused the EU of failing to show Britain respect at the Salzburg summit where her proposals were publicly rebuffed.

“I have treated the EU with nothing but respect. The UK expects the same.

“It is not acceptable to simply reject the other side's proposals without a detailed explanation and counter proposals.”

Standing at a lectern in front of two large union flags, Mrs May said she would “never agree” to the EU’s demand that Northern Ireland stay aligned with EU rules, which “threatens the integrity of the United Kingdom”.

She went on: “If the EU believe I will, they are making a fundamental mistake.

“Anything that fails to reflect the referendum or divides our country in two would be a bad deal. And I have always said, no deal is better than a bad deal.”

She said the only offers made so far by EU leaders were “bad deals” that she could only reject as they failed to respect the EU referendum result of 2016.

Mrs May concluded her statement by saying: "The EU should be clear, I will not overturn the result of the referendum, nor will I break up my country. We need serious engagement in resolving the two big issues in the negotiations and we stand ready."

Theresa May's speech in full

 

"Yesterday, I was in Salzburg for talks with European leaders.

"I have always said that these negotiations would be tough - and they were always bound to be toughest in the final straight.

"While both sides want a deal, we have to face up to the fact that - despite the progress we have made - there are two big issues where we remain a long way apart.

"The first is our economic relationship after we have left.

"Here, the EU is still only offering us two options.

"The first option would involve the UK staying in the European Economic Area and a customs union with the EU.

"In plain English, this would mean we'd still have to abide by all the EU rules, uncontrolled immigration from the EU would continue and we couldn't do the trade deals we want with other countries.

"That would make a mockery of the referendum we had two years ago.

"The second option would be a basic free trade agreement for Great Britain that would introduce checks at the Great Britain/EU border. But even worse, Northern Ireland would effectively remain in the Customs Union and parts of the Single Market, permanently separated economically from the rest of the UK by a border down the Irish Sea.

"Parliament has already - unanimously - rejected this idea.

"Creating any form of customs border between Northern Ireland and the rest of the UK would not respect that Northern Ireland is an integral part of the United Kingdom, in line with the principle of consent, as set out clearly in the Belfast/Good Friday Agreement.

"It is something I will never agree to - indeed, in my judgement it is something no British Prime Minister would ever agree to. If the EU believe I will, they are making a fundamental mistake.

"Anything which fails to respect the referendum or which effectively divides our country in two would be a bad deal and I have always said no deal is better than a bad deal.

"But I have also been clear that the best outcome is for the UK to leave with a deal. That is why, following months of intensive work and detailed discussions, we proposed a third option for our future economic relationship, based on the frictionless trade in goods. That is the best way to protect jobs here and in the EU and to avoid a hard border between Ireland and Northern Ireland, while respecting the referendum result and the integrity of the United Kingdom.

"Yesterday Donald Tusk said our proposals would undermine the single market. He didn't explain how in any detail or make any counter-proposal. So we are at an impasse.

"The second issue is connected to the first. We both agree that the Withdrawal Agreement needs to include a backstop to ensure that if there's a delay in implementing our new relationship, there still won't be a hard border between Ireland and Northern Ireland.

"But the EU is proposing to achieve this by effectively keeping Northern Ireland in the Customs Union.

"As I have already said, that is unacceptable. We will never agree to it. It would mean breaking up our country.

"We will set out our alternative that preserves the integrity of the UK. And it will be in line with the commitments we made back in December - including the commitment that no new regulatory barriers should be created between Northern Ireland and the rest of the UK unless the Northern Ireland Executive and Assembly agree.

"As I told EU leaders, neither side should demand the unacceptable of the other.

"We cannot accept anything that threatens the integrity of our union, just as they cannot accept anything that threatens the integrity of theirs.

"We cannot accept anything that does not respect the result of the referendum, just as they cannot accept anything that is not in the interest of their citizens.

"Throughout this process, I have treated the EU with nothing but respect. The UK expects the same. A good relationship at the end of this process depends on it.

"At this late stage in the negotiations, it is not acceptable to simply reject the other side's proposals without a detailed explanation and counter proposals.

"So we now need to hear from the EU what the real issues are and what their alternative is so that we can discuss them. Until we do, we cannot make progress.

"In the meantime, we must and will continue the work of preparing ourselves for no deal.

"In particular, I want to clarify our approach to two issues.

"First, there are over 3 million EU citizens living in the UK who will be understandably worried about what the outcome of yesterday's summit means for their future.

"I want to be clear with you that even in the event of no deal your rights will be protected. You are our friends, our neighbours, our colleagues. We want you to stay.

"Second, I want to reassure the people of Northern Ireland that in the event of no deal we will do everything in our power to prevent a return to a hard border.

"Let me also say this.

"The referendum was the largest democratic exercise this country has ever undergone. To deny its legitimacy or frustrate its result threatens public trust in our democracy.

"That is why for over two years I have worked day and night to deliver a deal that sees the UK leave the EU.

"I have worked to bring people with me even when that has not always seemed possible.

"No one wants a good deal more than me.

"But the EU should be clear: I will not overturn the result of the referendum. Nor will I break up my country.

"We need serious engagement on resolving the two big problems in the negotiations. We stand ready."

The pound plummeted following Mrs May's speech, giving up four days of gains on the US dollar to shed 1.5 per cent and close at 1.30 in London. Versus the euro, the British currency was down over 1 per cent at 1.11.

Leading Tory Brexiteer Jacob Rees-Mogg welcomed the PM's "strong and forthright" tone, but said it was time for her to ditch Chequers and go for a simple Canada-style free trade agreement with the EU.

Cabinet minister Penny Mordaunt said she believed that voters "still want a deal but (are) content to go without one".

Labour leader Jeremy Corbyn said Mrs May had shown herself "incapable of delivering a good Brexit deal", and shadow Brexit secretary Sir Keir Starmer accused her of being "in denial".

"The Prime Minister's negotiating strategy is collapsing around her and that's why we're in this impasse and the country is staring down the barrel of no deal," said Sir Keir.

The Prime Minister called cameras into No 10 just before 2pm - but the BBC said the statement was delayed by a power failure in the room.

Earlier the Brexit Secretary expressed anger over her treatment at the Salzburg summit which has been described as a “humiliation” by the media.

Dominic Raab complained that the EU leaders had “yanked the handbrake” on her plans without offering any credible alternative.

He accused European summit president summit leader Mr Tusk of looking “unstatesmanlike” by posting Instagram images mocking Theresa May. The picture showed him offering her a cake with the quip: “Sorry, no cherries.”

Mr Raab lambasted the EU 27 leaders for giving “no coherent explanation” for rejecting Mrs May’s Chequers plan, nor offering any alternative to it. He said they seemed to be trying to “salami slice” her blueprint rather than respond in kind to the “arm of friendship” that Mrs May had extended.

“We have been rebuffed on our plans without any coherent explanation why,” he told the BBC.

“We have revved up the motor of these negotiations and the EU has just yanked up the handbrake. For the negotiations to go forward they are going to have to take their hand off the handbrake.”

He signalled that Mrs May would not dump her plans nor make further concessions at this stage. “We are going to hold our nerve, keep calm and continue negotiating in good faith.”

In a clear reference to Mr Tusk he said: “I don’t want to impugn bad intentions to the other side. I think some of the way it was done - social media against the Prime Minister - didn’t feel to me like very statesmanlike behaviour.”

He went on: “To be rebuffed on those aspects, without a coherent explanation, without credible alternatives, I think at some point light will shine back on the EU with questions about whether they handled this well.”

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