European Union to offer United Kingdom a 'supercharged' free trade deal next week

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THERESA May is expected to make major concessions in new proposals to the European Union that could delay Brexit for years and restrict Britain's ability to strike trade deals.

The two sides spent days trading bad-tempered barbs, with EU leaders demanding an apology after British Foreign Secretary Jeremy Hunt compared the bloc to the Soviet Union.

The two parties agree to avoid the return of a physical border between the british province of Northern Ireland and the Republic of Ireland, but London rejected the provisions of the "safety net" (or "backstop") as laid down by the EU.

A senior Whitehall source said: "This is gamesmanship by the EU".

As you know, I always try to present the EU's position honestly, and without beating about the bush.

The prime minister says she is opposed to such a deal precisely because it would require a customs border in the Irish Sea, and would lead to the break-up of the United Kingdom as we know it because Northern Ireland would have to be treated differently to the rest of the UK.

The Irish leader was speaking to journalists in between a series of meetings with European Union leaders in Brussels, as exit talks enter a critical fortnight before the make-or-break October summit.

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But he held out the offer a "Canada+++" trade deal, which was welcomed by many Brexit-supporting politicians as the basis for a final deal.

"Continued concerns over the Italian budget deficit and sovereign rating contrasts with what seems to be an improving Brexit outlook", Morgan Stanley analysts said in a note, pointing to possible further downside momentum towards 87 pence per euro.

"The European Union is about freedom and human rights, prosperity and peace, life without fear, it is about democracy and pluralism; a continent without internal borders or walls".

The EU has urged the british government "get back to work" to unblock swiftly churning of the Brexit, hoping that Theresa May now has the authority necessary internally to complete an agreement with the 27.

That, in turn, is a hard one for Britain where Prime Minister Theresa May's government relies on the support of the Northern Irish Democratic Unionist Party, which vehemently opposes differing rules on its soil from the rest of the United Kingdom.

Following a meeting with Irish Taoiseach Leo Varadkar, Mr Tusk took aim at the UK Government saying that overheated rhetoric "will achieve nothing except wasting more time" during Brexit negotiations.

Meanwhile on Friday, four of Northern Ireland's pro-remain parties will be briefed on Brexit talks in Brussels by the EU's chief negotiator, Michel Barnier. A deal needs to be sealed within weeks if the European and British parliaments are to have time to approve it before March.

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