May will fall without deal, warns EU

Juncker fears government will disintegrate as early as next week with Tory Eurosceptics deserting PM

JEAN-CLAUDE JUNCKER fears Theresa May’s Government could collapse next week if Brexit talks remain deadlocked, The Daily Telegraph has learnt.

The European Commission president will extend the deadline for the Prime Minister to settle a dispute over the Irish border to the eve of an EU leaders’ summit next Thursday to maximise her chances of success. Mrs May’s own MPS warned her she could be toppled “within weeks” if she returned next week without an agreement that trade talks could begin.

Potential leadership candidates, including Boris Johnson, Michael Gove and David Davis, are said to be in a state of readiness in case of a coup, though none is prepared to wield the knife.

Support for Mrs May from Eurosceptic Tory MPS is ebbing after her disastrous trip to Brussels on Monday, when she was forced to abandon talks on a withdrawal deal after an angry intervention by Arlene Foster, the DUP leader.

Yesterday she was the victim of a coordinated backbench attack in the Commons, with one MP offering to help her with negotiations if she cannot “sort them out” herself. As the infighting escalated, 20 Tory MPS wrote to Mrs May accusing pro-brexit colleagues of being “highly irresponsible to seek to dictate terms which could lead to the UK walking away”.

The air of chaos around the Prime Minister increased when Philip Hammond, the chancellor, admitted the Cabinet had still not agreed on a target for the “end state” of Brexit, amid growing concerns that Mrs May is trying to steer towards a “soft” Brexit.

Mrs May telephoned Mrs Foster and Leo Varadkar, the Irish prime minister, yesterday, to discuss the disputed issue of the Irish border, which must be settled as part of the withdrawal agreement before the European Council can sanction trade talks. DUP sources said they were still “days away” from an accord, but Mr Varadkar last night said Mrs May hoped to offer a new version of the agreement imminently. “Having consulted with people in London, she wants to come back to us with some text tonight or tomorrow,” Mr Varadkar said. “I expressed my willingness to move forward as well... because I want us to move on to phase two [trade talks] if that is possible next week.”

Mr Juncker is desperate to keep Mrs May in Downing Street, as a Tory coup would not only disrupt the Brexit process but could result in the Foreign Secretary, a hardline Brexiteer, taking over from her, which is regarded as a worst-case scenario in Brussels.

One EU official said: “Mr Juncker wants to support Mrs May to avoid the collapse of her government. He is prepared to meet her at any time, including on days next week in the run-up to the European summit.”

The source said that the text of the disputed draft withdrawal agreement could be changed because “there’s always wriggle room”.

Until now, Mr Juncker had suggested that Sunday was the last day on which he could meet Mrs May, having already extended the deadline once. If Mrs May fails in her mission, her next chance to get trade talks under way would be in March. One formerly loyal Tory MP said: “I would give her a matter of weeks if it carries on like this.”

Any attempt to oust Mrs May would almost certainly come from backbench MPS, some of whom were discussing writing to Graham Brady, the chairman of the 1922 Committee, to say they had lost confidence in the Prime Minister.

Party discipline has started to fracture this week, with senior figures such as Iain Duncan Smith talking about walking away from Brexit negotiations.

Jacob Rees-mogg, the MP for North East Somerset, asked the Prime Minister: “Before [Mrs May] next goes to Brussels, will she apply a new coat of paint to her red lines?

“Because I fear on Monday they were beginning to look a little bit pink.”

Additional reporting by James Rothwell

THERESA MAY’S Brexit negotiating stance is unhelpful and could be “economically damaging”, a group of crossbench peers have said.

The Prime Minister has drawn criticism from her own side – including Baroness Browning, who was once in her ministerial team – for saying that no deal would be better than a bad deal.

The committee said a tight deadline and lack of progress meant Britain was at risk of leaving without a deal, making a border with Ireland impossible to avoid and resulting in significant financial consequences.

The border issue has already delayed trade talks between the UK and EU following the failure of Northern Ireland and the Republic to agree on Mrs May’s proposition.

In a report, the Lords EU committee said: “We will live with the consequences of Brexit for decades to come, so we need to get it right. If buying a bit more time means that we get a better outcome… a short extension of EU membership may be a price worth paying. This is not about unpicking Brexit, but about delivering the best Brexit possible.”

In a damning assessment, the Lords said it would be “difficult, if not impossible, to envisage a worse outcome for the UK” than a no-deal exit.

The peers also warned that “enshrining the Article 50 deadline of 29 March 2019 in domestic law would not be in the national interest because negotiations may need to continue past this point and setting it out in law would restrict the Government”.

Lord Jay of Ewelme, acting chairman, said: “The biggest risk factor that might lead to a no-deal outcome is time. The clock is ticking. While we support David Davis’s ambition to secure a comprehensive agreement by 29 March 2019, almost nobody outside the Government thinks this will be possible.”