Ambushed May lets EU citizens stay as ‘no-deal’ looms large

Prime Minister hits out at ‘unacceptable’ Chequers rejection and warns EU leaders to suggest alternatives to break Brexit impasse

EU CITIZENS have the right to stay in Britain even if the UK leaves the EU without a deal, Theresa May said yesterday, in a demonstration of how seriously the Government is taking the prospect of talks breaking down.

In a surprise statement in Downing Street after she was ambushed by EU leaders in Salzburg on Thursday, the Prime Minister refused to row back from her Chequers plan despite being warned it “will not work”.

She also reiterated her compromise “third option” for the Northern Irish border in a bid to break an “impasse” over the issue, but warned leaders she will “never agree to” anything which creates a customs border with the UK.

The proposal is understood to focus on extending the current regulatory regime for agricultural products to other sectors. It would not alter plans for customs arrangements, already set out by ministers.

There are already different food and agriculture regulations between Northern Ireland and the UK and the Government is understood to be happy to extend this to other areas in a bid to avoid a hard border.

Mrs May is said to have decided to make the statement yesterday after growing disquiet among her Cabinet about how badly the summit ended.

Talk of a possible Cabinet resignation was denied last night, but a senior source told The Daily Telegraph that some of Mrs May’s top team are reported to see Monday’s Cabinet meeting as a crunch point, after which they may consider their positions in the Government.

Opposition to her Chequers plan among EU leaders is said to have bolstered critics in her Cabinet who want to see the plan replaced by a Canadastyle free-trade agreement.

The Government had expected warm words from European leaders about her proposals after she explained how they could form the basis for a new way forward over dinner on Wednesday night. But the UK side was shocked by the strength of negativity about the plans, prompting Mrs May’s defiant statement to cameras in Downing Street yesterday.

In it, she appeared frustrated that EU leaders had not properly engaged with Britain’s revised proposals and warned again that no alternative plan had been presented by Brussels.

Mrs May also directed her ire at leaders who had joked about Brexit and her chances of getting a deal in what a Cabinet source told this newspaper was a “distasteful show”. Others branded the photographs, posted on social media site Instagram, “bullying”.

The Prime Minister said: “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.”

She urged leaders to set out their concerns ahead of the October summit, during which significant progress must be made to ensure that Emmanuel Macron, the French President, and others who have deep criticisms of her plan, back a November meeting.

Until they do, she added, “we cannot make progress”.

The Prime Minister also spoke directly to EU nationals living in Britain and promised they would be protected even in the face of a no-deal outcome.

Up until now ministers have hinted that this would be the case but were understood to have wanted to secure similar protections for UK nationals before formally announcing it.

Mrs May said: “There are over three 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.”

‘At this late stage … it is not acceptable to simply reject the other side’s proposals without a detailed explanation and counter proposals’

A No10 source said the decision to make the pledge showed just how seriously the UK was taking no-deal planning.

Another Government source added that it also demonstrated Britain was prepared to take the moral high ground while EU leaders posted “unhelpful” photos online.

Hinting at the possibility of the UK leaving with no deal, which was said to have been a key reason for EU opposition to the plan earlier this week, Mrs May said: “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.”

She added: “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.”

In an apparent bid to mend ties with the UK following her remarks, Donald Tusk, the EU Council president whose remarks on Thursday prompted fury in the No10 camp, issued a statement in which he praised Mrs May.

He repeated claims that her “surprisingly tough and in fact uncompromising” stance on no deal was what triggered negative comments from the 27 leaders, but added: “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.”

A UK source close to the negotiations said Mr Tusk appeared “under pressure” and “rattled” during his statement and cast doubt on whether he had intended his words to be so harsh, adding he had been forced into a harder stance by the French leader.

‘I remain convinced that a compromise, good for all, is possible. I say these words as a close friend of the UK and a true admirer of PM May’