Brexit latest: Theresa May hails 'important step' as second stage of negotiations given green light by EU leaders

Theresa May spoke to European leaders at a dinner on Thursday
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Theresa May hailed an “important step” to Brexit today after EU leaders cleared the way for talks on a transition period and a trade deal.

The Prime Minister was jubilant after the “divorce phase” of talks ended officially in Brussels.

“Congratulations @theresa_may!” tweeted EU Council president Donald Tusk after the bloc rubber-stamped the first phase, covering the exit terms. “EU sign off phase one of the #Brexit talks, now they can move on to trade.”

Mrs May tweeted back: “Today is an important step on the road to delivering a smooth and orderly Brexit and forging our deep and special future partnership.”

But both sides said there would be tough negotiating, as European Commission president Jean-Claude Juncker warned Phase 2 talks would be “significantly harder”.

The spotlight now moves to a special meeting of Mrs May’s Cabinet next week where ministers are set to broadly endorse her opening moves for trade talks. Soundings among ministers by the Standard suggest a majority in Cabinet support her broad approach, described as alignment with EU rules in some areas in order to maximise trade opportunities.

Differences are emerging, however, with Brexiteers like Boris Johnson and Michael Gove urging a looser alignment to allow trade deals elsewhere.

Others, like Home Secretary Amber Rudd, want to maintain maximum trade with the EU.

But there seems to be little appetite for a “hard Brexit” on World Trade Organisation terms, nor significant opposition even among “soft Brexit” supporters to Mrs May’s vow to quit the single market and the customs union.

“The definition of soft Brexit has hardened in the past six months,” a senior minister who backed Remain in 2016 said. “It used to mean staying in the single market but now it means aligning outcomes rather than harmonising rules.”

Another senior minister, who backed Brexit, said: “Nobody wants a no-deal outcome. I suspect there will be a great deal more unanimity than people realise.”

Mrs May, who has scheduled a 90-minute debate on Tuesday to give every member of the Cabinet an opportunity to air their views, was applauded by EU leaders at a dinner last night.

On Monday she will chair a 90-minute meeting of the Brexit “war cabinet”, as Transport Secretary Chris Grayling urges that Britain should not give full access to French farm produce without reciprocal access for the City of London’s services.

Mrs May’s spokesman this morning denied she is abandoning her bid to fix the Brexit date as March 29, 2019, amid fears of a new Commons defeat.

In an interview with the Standard today, rebel former Attorney General Dominic Grieve urged her to drop the attempt to set the date.

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