EU chief negotiator warns decision to move on to trade talks could take '˜months'

The latest setback for the Brexit negotiations comes just days after the Prime Minister’s meeting with European Council President Donald Tusk, during which the Polish politician cast doubt on the likelihood of EU leaders giving the green light to phase two of discussions at a meeting next month.

Providing an update on the fourth round of formal Article 50 talks, Michel Barnier told reporters it had been a “constructive” week and that Mrs May’s intervention in Florence had helped to “unblock” dialogue on areas of disagreement.

But he repeated concerns about the stand-off over the future role of European Courts, and the UK’s reluctance to set out details of its financial obligations.

The press conference comes ahead of a debate in the European Parliament next week in which MEPs will be asked to back a motion calling for the decision on whether to proceed to the next stage of negotiations to be postponed

Although non-binding, the vote will send a clear message to the heads of state attending October’s meeting of the European Council, where they are due to discuss progress on issues relating to the UK’s withdrawal.

This first phase of talks centers around three key topics: citizens’ rights, the UK’s financial commitments to the EU, and the border with Northern Ireland. The Council has repeatedly stated that it will not enter into negotiations on the UK’s future relationship with the EU until “sufficient progress” has been made in these areas.

The so-called divorce bill has reportedly been a major stumbling block in negotiations, with some estimates suggesting it could be as high as £50bn.

Mrs May used a setpiece speech in Florence last week to offer further guarantees that no EU member state will be shortchanged as a result of Britain’s exit, –a move seen by many as an attempt to smooth the way for post-Brexit trade talks.

Commenting on the speech yesterday, Mr Barnier acknowledged that it had added “a new dynamic” and helped to “unblock the situation to some extent”. But although he described this week’s talks as “constructive”, he warned they “are not there yet in terms of achieving sufficient progress”.

He said the two parties continue to disagree on the future role of the ECJ in monitoring the UK’s compliance with certain aspects of EU law.

And on the issue of the financial settlement, he said the UK was not yet in a position to say how much it believes it owes.

He told reporters: “We are far from being at a stage – and it will take weeks, maybe even months – where we’ll be able to say there has been sufficient progress on this orderly withdrawal.”

Speaking today, Brexit Secretary David Davis insisted both sides were making “decisive steps forward”. “When I look across the full range of issues to do with our withdrawal ... I am clear that we have made considerable progress,” he said.

“On citizens’ rights, we have made real progress on issues which will enable citizens on both sides to continue to live their lives broadly as they do now.

“I make no secret of wanting to talk about the future, and the importance of this to business and citizens both in the European Union and the United Kingdom.”