Brussels set to dash May’s hopes of last-gasp breakthrough on deal

THERESA May’s chances of a Brexit breakthrough appear to have been dashed after Brussels all but rejected every one of her three proposed options.

As she prepares today for another meeting with Jean-claude Juncker to present “new legal proposals”, the Prime Minister risked confrontation with right-wing Brexiters after it was suggested the so-called Malthouse Compromise, which seeks to bring together MPS from the remain and leave wings of the party, was all but dead.

The Conservative compromise seeks to replace the backstop with a free trade agreement using modern technology to avoid customs checks on the Irish border while extending the transition period for an extra year until December 2021 to allow more time to agree a new trading relationship.

However, it was suggested Mrs May told colleagues during the weekly Cabinet meeting yesterday that there was now no chance of working up the “alternative arrangements” plan into a firm solution in the time left before Brexit Day on March 29.

This followed a meeting between Stephen Barclay, the Brexit Secretary, and Michel Barnier, the EU’S chief negotiator, when the Malthouse Compromise proposals were discussed. No 10 pointed out that Brussels had “expressed concerns about their viability to resolve the backstop”.

Yesterday evening, the PM met with those backing the Malthouse Compromise to discuss their proposals. Afterwards Brexiters Jacob Rees-mogg and Steve Baker emerged to suggest the compromise plan was “alive and kicking”.

Yet it emerged that the alternative arrangements blueprint would only form part of the discussions on the future relationship not on the current withdrawal process. Labour’s Ian Murray MP, speaking on behalf of the pro-eu Best for Britain campaign, accused UK ministers of “chasing unicorns to appease hardline backbenchers”.

“The EU won’t grant any substantial changes to the backstop and a few wishy-washy legal statements won’t please the

ERG extremists,” said the Edinburgh MP.

Earlier in the day, the Commission had dismissed the two other options being worked on by UK ministers and officials: a time-limit to the backstop and a unilateral exit mechanism.

“The EU will not reopen the Withdrawal Agreement,” said Margaritis Schinas, the European Commission spokesman. “We cannot accept a time limit to the backstop or a unilateral exit clause,” he added.

Later, No 10 made clear it was still the PM’S intention to reopen the Withdrawal Agreement to get the backstop changed in a way that would win majority support in the Commons.

Asked if Mrs May had told her Cabinet progress had been made, her spokesman replied: “The PM has had very extensive engagement with foreign leaders. But obviously there is more work still to do and the PM will be continuing her discussions with Jean-claude Juncker tomorrow.”