Barnier welcomes ‘clarity’ and recognition of need for ‘trade-offs’

Brussels’ chief Brexit negotiator Michel Barnier has welcomed the “clarity” from Theresa May over her plans for future UK-EU relations.

He said her position on the single market, customs union and the “recognition of trade-offs” would inform the guidelines on the free trade agreement for the European Council.

But senior German MEP Manfred Weber said he was “even more concerned” about reaching a Brexit deal after the speech.

Mr Weber, chairman of the centre-right EPP group in the European Parliament and an ally of Angela Merkel, said: “I don’t see how we could reach an agreement on Brexit if the UK Government continues to bury its head in the sand like this.”

Business leaders welcomed elements of the speech – but called for more details on areas such as the food sector.

CBI director general Carolyn Fairbairn said: “We heard the strongest acknowledgement yet of what’s needed to get a good deal.

“A possible future role for the ECJ, membership of some EU agencies, willingness to take steps to guarantee a level playing field – these are all welcome softening of red lines.”

But she called for more work to “lift the fog of uncertainty”, saying it was vital to reach a deal on transition by the end of the month.

Stephen Martin, director general of the Institute of Directors, raised concerns about customs, saying: “It is important to stress that if the UK is doubling down on its unprecedented customs partnership model, HMRC have said it will take five years minimum to implement.”

Michel Barnier.