What prevented a deal?
The thorny issue of what happens to the border between Northern Ireland and the Republic after Brexit. It combines the intractable politics of the peace process, the delicate Conservative/DUP coalition and the complexity of Brexit. The EU has accepted Mrs May’s offer on money and a deal is close on the rights of EU nationals in the UK. But all three issues must be agreed by December 14 if the talks are to move on to trade.
Why is the border a problem?
After Brexit, Northern Ireland will have the only land border between the UK and the EU. With Britain leaving the single market and the customs union – but the Republic staying inside both – there are questions about how to move goods over the 300 crossing points along the 310-mile frontier.
The EU commission president Jean-Claude Juncker praised Theresa May as a ‘tough negotiator’ and both politicians signalled that there would be more talks later this week
What does each side want?
Dublin – backed by the EU – says there must be no ‘hard border’ involving customs checks for fear of undermining peace accords. Irish ministers have suggested Northern Ireland should stay inside the customs union. But Mrs May – and the DUP – could never agree, as it amounts to breaking up the integrity of the United Kingdom.
How far apart were the sides?
Government sources played down the prospect of a deal after Mrs May arrived for talks with Brussels chiefs yesterday, describing the meeting as a ‘staging post’. But EU officials briefed that a deal was imminent, in what was seen as an attempt by to ‘bounce’ Mrs May into an agreement.
DUP leader Arlene Foster said the party would ‘not accept any form of regulatory divergence that separates Northern Ireland economically or politically from the rest of the UK’
What went wrong?
At just after 11am, details of a draft deal were leaked to Irish media. They were interpreted as suggesting the UK would agree to single market and customs union rules north of the border and that Mrs May had capitulated. They were seized upon by SNP leader Nicola Sturgeon and London mayor Sadiq Khan, who demanded separate deals for Scotland and the capital.
What did the DUP say?
DUP leader Arlene Foster denounced any deal that ‘separates Northern Ireland economically or politically from the rest of the UK’. ‘The economic and constitutional integrity of the United Kingdom will not be compromised in any way’, she said.
The Prime Minister was forced to leave a lunch meeting to speak to Mrs Foster who – it soon became clear – had not agreed the wording of the draft deal. Tory MPs insisted the UK’s integrity must not be undermined in a sign of deep disquiet that Mrs May appeared ready to agree the proposal.
Irish Prime Minister Leo Varadkar (pictured at a press conference in Dublin) said he had been ready to sign up to what was on the table but that he was told by Brussels that Britain was backing off
What does No10 say?
Officials dispute the Irish interpretation of the text. They argue that the suggestion of aligning regulations would only have applied to specific aspects of the Good Friday Agreement, including energy, agriculture and transport. The language appears designed to be palatable to both sides until trade is on the table and a detailed agreement is possible. But the way the story emerged has hardened positions in Belfast and among Tory MPs.
What happens next?
Mrs May is expected to talk to the DUP today and return to Brussels on Wednesday.