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Summary

  1. UK and EU fail to reach Brexit deal
  2. Theresa May met EU's Juncker and Tusk
  3. Last sticking point is N Ireland border
  4. DUP angry at idea of different status for NI
  5. UK wants talks to move to future trade relations

Live Reporting

By Gavin Stamp and Alex Hunt

All times stated are UK

Welsh flag and Westminster

James Williams

BBC Wales Brexit correspondent

MPs are discussing amendments to the EU Withdrawal Bill proposed by the Welsh and Scottish governments.

Read more

Recap: How Brexit drama unfolded

Theresa May and Jean-Claude Juncker at a joint press conference
Reuters

It's been a frenetic few hours in Brussels and it is not clear we are any the wiser as to whether an agreement to move the Brexit process onto the next phase will be reached in time for next week's summit.

Here is a summary of what has happened.

  • Talks are set to resume on Wednesday after the two sides failed to reach an agreement on phase one issues, including Ireland and citizens' rights
  • Theresa May says differences remain on a "couple of issues" but she is "confident we will conclude this positively"
  • The BBC's Laura Kuenssberg says a deal had been "sunk" by the DUP, which reacted angrily to reports of concessions on the Irish border issue
  • The Irish prime minister says he was "disappointed and surprised" that a draft text agreed by Dublin had not been signed off by the UK and EU

Sturgeon: DUP has 'unhealthy influence' over May

Scottish First Minister Nicola Sturgeon has been talking to the BBC about today's Brexit developments.

She says no-one wants to see a hard border on the island of Ireland and suggests the "unhealthy influence" of the DUP at Westminster was a major factor in the apparent failure to finalise an agreement.

If the concept of a distinct status for Northern Ireland is borne out in the final phase one agreement, she says "this will change everything".

The bottom line is the UK government appears to be accepting parts of the UK can effectively stay within the single market, so if that's good enough and possible enough for Northern Ireland there's no reason why it can't be the case for Scotland."

We'll meet again....

The Sun's political editor Tom Newton Dunn says Theresa May is planning to return to Brussels on Wednesday following Prime Minister's Questions.

The trip probably wasn't scheduled in her diary but with the crunch summit less than 10 days away, it is probably impossible for her to stay away.

View more on twitter

Brexit timetable 'very tight' says Tusk

'No hard border if UK in customs union'

Wales' first minister Carwyn Jones rejects suggestions Northern Ireland should be given special treatment in Brexit talks.

Are tank tops fine in Brexit negotiations?

Irish Prime Minister Leo Varadkar arrives for this morning's cabinet meeting
PA

At his press conference a moment ago, the Irish PM was quizzed about his sartorial choices when he arrived for this morning's special cabinet meeting.

I think this is what the journalist was talking about when she asked him whether tank tops were back in.

I still trust Theresa May says Irish counterpart

Asked whether he has spoken to the Democratic Unionists - reported to have vetoed an outline agreement on the Irish border - Mr Varadkar said he had not done so personally although there were links between the parties.

The DUP has an important role to play but it is not the only party in Northern Ireland and it is not his job to ensure the DUP were "on side".

He again insists that he only has the welfare of his people at heart and he is "not looking to pick a row with anyone or advance a hidden agenda".

And he says he believes Theresa May is negotiating in good faith.

I do trust the PM and I am happy to allow her more time if that is what is needed. And there is more time.

Watch: Irish PM Leo Varadkar surprised at UK decision

Brexit: 'I still think I made the right decision'

Factory workers Julie and Mandy explain how life has changed for them in the city of Hull

Varadkar 'disappointed' by UK's stance

Speaking in Dublin, Mr Varadkar says his government agreed to a draft text on the Irish border drawn up by the UK and EU.

He expresses "surprise and disappointment" that the UK could not agree to the text.

While he acknowledges that Theresa May is negotiating in "good faith" and has a lot on her plate, he says he is committed to securing an agreement and moving onto the second phase of negotiations.

Varadkar: Ireland has 'no hidden agenda'

Speaking now, Irish PM Leo Varadkar says there has been substantial progress in recent intensive negotiations, including on the continuation of the Good Friday Agreement, the Commons Travel Area and Ireland's membership of the EU.

But he says the most difficult issue was Ireland's desire for a cast-iron guarantee and written assurance that there will be no hard border with Northern Ireland.

He insists that Dublin has "no hidden agenda" insisting it no more wanted to see a border in the Irish Sea as it would a "border between Newry and Dundalk".

Khan: London deserves bespoke deal

Speaking on a trip to India, Mayor of London Sadiq Khan has said Theresa May has accepted the principle of different parts of the UK getting a bespoke Brexit deal.

He's referring to the idea, floated earlier, of Northern Ireland having the same regulations as the Republic of Ireland.

London voted to remain in the EU...Given the importance of protecting tens of thousands of jobs, the government should be saying to London 'membership of the single market, customs union and the cast-iron guarantee for EU citizens'."

Theresa May meets Donald Tusk

Theresa May shakes Donald Tusk's hand during talks in Brussels
Reuters

Earlier we referred to a meeting Theresa May was having with European Council President Donald Tusk.

Here we have the evidence that it is happening.

Like the earlier encounter with Jean-Claude Juncker, I think it is fair to say that the body language is a little bit strained although maybe it is the increasing frequencies of these encounters rather than the personal dynamics that are to blame.

Theresa May and Donald Tusk
Reuters

Deal speculation 'totally out of hand' says MP

BBC News Channel

Peter Bone
BBC

Tory Brexiteer Peter Bone says media speculation about a likely deal earlier today had got "totally out of hand".

Mr Bone, who has just come out of a briefing of MPs, said the prospect of the whole of Ireland remaining in the customs union was "nonsense" and "just not right", suggesting, contrary to what it appeared, that it was never seriously on the table.

"It has caused a lot of unnecessary alarm," he tells BBC News, insisting any Irish border deal had to have the backing of the people of Northern Ireland.

The MP says it is fine if no overall deal is reached - he's sanguine about the prospect of the UK falling back onto World Trade Organisation rules - but he says the UK has to decide what it wants to do soon, by the Spring at the latest.

May under fire from both UKIP and Lib Dems

Former UKIP leader Nigel Farage
PA

Both UKIP and the Lib Dems are unhappy about Theresa May's handling of negotiations but for different reasons.

Former UKIP leader Nigel Farage, who has campaigned for 20 years for the UK to leave the EU, said talk of Northern Ireland having the same customs and trade regulations as the Republic of Ireland was a "concession too far" from the government and would "damage the integrity of the UK".

Mr Farage, who is also calling on Mrs May to step aside, was speaking before the DUP objected to such an idea and apparently vetoed a deal on these grounds.

And, for the anti-Brexit Lib Dems, Tom Brake says the current situation could have been avoided by keeping the whole of the UK in the EU's customs union.

Theresa May has cowered in front of her backbenchers and driven forward a reckless Brexit which risks destabilising the whole UK.

Tom BrakeLib Dem Brexit spokesman

Laura Kuenssberg: DUP told PM they wouldn't back deal

Laura Kuenssberg

BBC political editor

The BBC understands that Theresa May broke off her talks with Jean-Claude Juncker after the Democratic Unionist Party leader, Arlene Foster, held a press conference saying the party could not accept anything that led to divergence between Northern Ireland and the rest of the UK.

The prime minister then phoned Ms Foster. During the call it was made plain to the PM that the DUP, whose support is vital to the government being able to pass their Brexit legislation, had significant concerns about the deal being discussed that gave concessions to the Dublin government.

I understand Ms Foster told Theresa May that she would not be able to support such a deal.

It’s been suggested too there are twenty or so Conservative MPs who had serious misgivings about the compromises that were understood to be on the table.

Watch: 'Significant progress' but no Brexit deal yet

Jean Claude-Juncker says it was not possible to reach "complete agreement" in the Brexit talks, but "significant progress” has been made.

Watch: May 'confident' of Brexit deal later this week

Theresa May says there will be more Brexit talks this week and she is "confident that we will conclude this positively".

Watch: DUP's Sammy Wilson unhappy with reported proposal

When BBC reporter realised it had not all gone to plan

BBC News Channel

The BBC's Adam Fleming says the fact the press conference was announced with only five minutes notice was the first indication that it had not "all gone to plan" and Monday's lunch was not simply a "rubber-stamping exercise".

Officials from both sides did not "look happy", he tells BBC News, and the fact there was so little information in the press conference now leaves everyone slightly in the dark as to what are the main stumbling blocks.

However, he says the UK is working to the EU's timetable and Downing Street was clearly prepared for there to be no deal when it described Monday's negotiations as a "staging post" to next week's summit.

Did the DUP sink a proposed deal?

BBC political editor tweets...

Today presenter Nick Robinson on 'brutal trade-offs'

When one meeting finishes...

The BBC's Christian Fraser in Brussels reminds us that Mrs May is now meeting European Council President Donald Tusk.

He thinks that Brexit Secretary David Davis could stay behind in Brussels to continue the discussions, even if Mrs May returns to London tonight.

However, MPs on the Commons Brexit committee will be expecting Mr Davis to fulfil an engagement to appear before them on Wednesday when they want to grill him over a row over the partial release of the government's Brexit impact assessments.

He has been accused of treating Parliament with contempt over the papers so I don't think they will be best pleased if he doesn't show up.

How much trade is there between Northern Ireland and the Irish Republic?

Reality Check

Owen Paterson saying: The amount of trade is really quite small between the two countries: the Republic of Ireland and the UK. It's 5% of Northern Ireland's exports - it's 1.6% of the Republic of Ireland's exports.
BBC

Owen Paterson told the Today Programme that there's only a small amount of trade between the UK and Republic of Ireland.

The Republic of Ireland is the fifth biggest customer for UK exports. The UK is the second biggest customer for Irish exports.

And the Republic of Ireland is a much more important destination for exports from Northern Ireland than Mr Paterson's figures suggest. It doesn't buy 5%, it buys 37%.

But Northern Ireland does indeed buy 1.6% of the Irish Republic's exports.

You can read the full Reality Check here.

'Huge ramifications' for London over Northern Ireland deal

The Mayor of London has warned of "huge ramifications" if Northern Ireland is allowed to remain in the single market and customs union after Brexit.

The UK and EU have failed to reach an agreement on the first round of Brexit talks, including whether a "hard border" will return between Northern Ireland and the Republic of Ireland.

The BBC's political editor said Mr Lamberts said the UK was prepared to accept that Northern Ireland may remain part of the EU in all but name.

But the DUP have said Theresa May would be "mad" to agree to anything substantial until the shape of a future trade agreement is clear.

In a tweet Sadiq Khan said: "Londoners overwhelmingly voted to remain in the EU and a similar deal here could protect tens of thousands of jobs."

View more on twitter

Watch: Theresa May's statement

If you think this is complicated...

Tory MPs are being briefed on the situation as we speak.

One of them, Chelmsford MP Vicky Ford, says although the Northern Ireland land border is "very special", she cannot see the PM agreeing to one set of national arrangements that potentially drives a wedge with the rest of the UK.

"If you think this is complicated, the trade talks are going to be very complicated," the former MEP adds.

Watch: Jean-Claude Junker's statement

Clock ticking as negotiations continue

Was that a bit of an anti-climax?

Depends on your point of view, given the speculation that has been building so far today of a deal. But it seems clear that progress is being made and the process is moving in the right direction, albeit incrementally.

What is not clear at this stage is whether Theresa May and her Brexit Secretary David Davis will remain in Brussels to spearhead the talks pending any agreement.

As we said earlier, there is a little bit of time to reach a deal before the EU summit on 14-15 December but the clock is ticking.

May: No deal yet but I'm still confident of one

Theresa May
BBC

Over to Theresa May. Her statement is very brief indeed. She says the two sides have been negotiating in good faith but there are one or two areas where differences still exist and talks will carry on to bridge them.

But, like Mr Juncker, she says she remains confident that there will be an agreement to move on to the next phase in the near future.

With that, both leaders leave the stage with Mr Juncker politely telling journalists that there is no time for questions.

This is not a failure says Juncker

Mr Juncker says the two sides have not reached a complete agreement today despite the best efforts and progress in all areas.

But he says differences are "being narrowed" and talks will continue later this week.

He insists "this is not a failure" and that he is confident that an agreement will be reached before next week's summit.

May 'a tough negotiator' says Juncker

Jean-Claude Juncker
BBC

The post lunch statements begin as Mrs May and Mr Juncker take the podium.

Mr Juncker goes first. In English, he says it was a frank and constructive meeting, adding that she is a "tough negotiator and not an easy one".

BreakingBBC Europe editor says: No deal today

Theresa May statement expected shortly

Theresa May is expected to come out and address the press corps in Brussels in the next couple of minutes.

She will be accompanied by European Commission boss Jean-Claude Juncker, with whom she has spent the last couple of hours locked in talks.

It may well all be smiles today but the two, of course, have a little bit of history when it comes to Brexit.

After an account of a private dinner they had in Downing Street in April found their way into the German media, Mrs May accused some people in the European Commission of seeking to interfere in the British general election.

Mr Juncker and his close aides denied any involvement in the leaks.

UK's negotiating strategy 'mad' says DUP MP

BBC News Channel

DUP MP Sammy Wilson says his party is used to "giving it straight up and not talking out the sides of our mouths".

In that vein, he suggests Theresa May is "mad" to agree to anything substantial with regard to the Irish border until the shape of a future trade agreement is clear.

He says the PM must know that the DUP cannot agree to anything which will effectively leave Northern Ireland in the customs union and the single market at the same time as the rest of the UK leaves it.

He says the border issue is being used a "straw man" by the Irish government for wider political ends and to extract concessions.

A separate arrangement for Northern Ireland would have huge implications for Scotland and Wales, he adds.

Crossing the border four times in 10 minutes

When Brexit happens, the UK will suddenly have a major land border with the EU - the frontier between Northern Ireland and the Republic of Ireland. One road crosses the border four times in 10 minutes, but can you spot where the crossings are? Read more - What happens to the Irish border after Brexit?

Brexit agreements need support of all 28 countries

European Parliament
EPA

Even if both sides announce a deal to move to the next phase of talks later on Monday, remember it still has to be signed off by the leaders of the all 27 other EU countries at a summit next week.

There has to be unanimity among EU members and if just one country objects, it means the process could become stalled again.

However, if the process gets the blessing of the European Commission and the European Council and if MEPs are on board too, it is hard to see anyone stepping out of line to resist it at a late stage.

The EU is as keen to get on with Brexit as the UK and it likes to have the main business of its summits agreed in advance so as not to spoil the choreography.