Varadkar on Brexit talks

began when Mr Johnson engaged in a frank telephone conversation with German Chancellor Angela Merkel.

A Downing Street source said Ms Merkel had told the prime minister that “a deal is overwhelmingly unlikely” unless the UK agreed to let Northern Ireland continue to follow EU customs rules in order to maintain an open Border on this island.

The unnamed source said that on the basis of the German argument “a deal is essentially impossible not just now but ever”.

However, European Council President Donald Tusk issued a testy tweet in which he said: “Boris Johnson, what’s at stake is not winning some stupid blame game.

“At stake is the future of Europe and the UK as well as the security and interests of our people. You don’t want a deal, you don’t want an extension, you don’t want to revoke, quo vadis?”

The final phase is Latin for ‘where are you going?’

The phone call between Mr Varadkar and Mr Johnson was described by Irish sources as “a good discussion on the state of play”.

Sources told the Irish Independent that both men promised to try to get a deal over the line.

No location or time has been agreed for a meeting but if there is still scope for progress, the pair will hold further discussions tomorrow or Friday.

In his Budget speech, Mr Donohoe said that his announcement was being made at a time “without precedent”.

“This is a Budget that has been developed in the shadow of Brexit.

“And the context for Brexit has now shifted to no deal as our central assumption,” he said.

Meanwhile, the value of sterling plunged again yesterday on the news that Brexit talks were close to breaking down.

The currency touched a onemonth low against the euro.