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Brexit: Juncker and May agree on EU divorce package

• Theresa May has finally secured breakthrough in efforts to secure deal with EU
• Negotiators worked overnight to finalise agreement with Ireland, DUP and EU
• PM travelled to Brussels to meet Jean-Claude Juncker and confirmed the deal
• EU leaders are now set to sign off starting trade talks at a summit next week

By James Tapsfield, Political Editor For Mailonline and Martin Robinson Chief Reporter For Mailonline and Kate Ferguson, Political Correspondent For Mailonline

Published: 01:03 EST, 8 December 2017 | Updated: 06:49 EST, 8 December 2017

Theresa May today defended making a slew of concessions to the EU as she finally struck a deal to unlock trade talks.

After a frantic night of negotiations, a bleary-eyed PM and Jean-Claude Juncker confirmed the 'breakthrough' had been achieved at an early morning press conference. 

Mrs May said the settlement was 'in the best interests of the whole country', while the DUP - which torpedoed an earlier version on Monday over fears about Irish border concessions - said it was now satisfied there was no threat to the integrity of the UK.

But the prospect of signing up to a huge divorce bill is threatening to cause serious unrest in the Tory ranks - even though the government now claims it is likely to be closer to £35-40billion than the £50billion figure previously leaked.

There is also anger at a commitment to accept the power of European judges for years to come. Some MPs criticised elements of the package as 'unacceptable', although many Eurosceptics appear to be keeping their powder dry for battles to come - stressing Mrs May's mantra that 'nothing is agreed until everything is agreed'.

Hailing the progress in the talks, which means trade discussions can formally begin after an EU summit next week, Mrs May insisted it was 'fair to the British taxpayer' and would allow the government to pump more into key services like the NHS.

The pound rallied against the euro on the news, while leading Cabinet Brexiteer Michael Gove signalled he is on board at least for the time being, describing it as a 'signficant personal and political victory' for Mrs May. Boris Johnson also voiced support.

But in a clear sign that the hard work has only just begun, European Council chief Donald Tusk immediately started making demands about the next phase of talks.

He said during a mooted two-year transition period Britain will have to keep making financial contributions and respect all EU laws, including new one, even though this country have no say over how they are decided.

In a scathing assessment, ex-Ukip leader Nigel Farage said: 'A deal in Brussels is good news for Mrs May as we can now move on to the next stage of humiliation.'

Former deputy PM Nick Clegg, a fervent Remainer, said it amounted to 'game, set and match for the EU on money and EU citizens'.

A bleary eyed PM and Jean-Claude Juncker confirmed agreement had been reached at a press conference in the Belgian capital this morning

The PM and Jean-Claude Juncker were smiling as they shook hands for the cameras 

The relief for Mr Juncker and Mrs May was clear as the pair greeted each other with a hug as she arrived at the European commission building

In a scathing assessment, ex-Ukip leader Nigel Farage condemned the way Mrs May was handling the talks

After days of stalemate, British and European officials said late last night they were 'within touching distance' of hammering out a 'divorce agreement' after plans collapsed on Monday when the DUP raised alarm that they risked splitting Northern Ireland from the UK.

Intensive discussions found a new wording for the text which DUP leader Arlene Foster said satisfied her there would be no border in the Irish sea. However, she said she regretted that the PM wanted to push ahead while there was still no clarity about the 'nature of any regulatory alignment with the EU that may be required post Brexit'.

Mr Juncker's chief aide Martin Selmayr tweeted a picture of white smoke this morning - a reference to the Vatican's famous signal that agreement has been reached on a new Pope.

The relief for Mr Juncker and Mrs May was clear as the pair greeted each other with a hug as she arrived at the European commission building.

Mr Juncker said he would be recommending to leaders of the bloc that they agree 'sufficient progreess' has been made at a key summit next week.

'I would like to thank the prime minister for her determination. The Prime Minister says this has the backing if the UK government,' Mr Juncker said.

'I believe we have now made the breakthrough we need.'.

Giving a separate statement later after meeting Mrs May, European Council chief Donald Tusk said he was 'satisfied' with the agreement and branded it a 'personal victory' for Mrs May.

But he warned of a tougher task to come. 'We all know that breaking up is hard. But breaking up and forming a new relation is harder.'

As if to illustrate his point, he immediately set down demands about a mooted two-year transition period after the UK formally leaves the bloc. 

Boris Johnson was thought to have made not accepting new laws from Brussels during the transition as a 'red line' - but that was exactly what Mr Tusk demanded. 

Brexit deal: What has been agreed today? 

Citizens' rights

The 3million EU citizens in the UK and the 1million UK citizens living in the EU can stay for their 'lifetime', the Brexit phase one deal document has revealed.

EU citizens in Britain and Northern Ireland will continue to have access to free healthcare and the benefits system after the UK cuts its ties with Brussels.

EU citizens with family outside the UK will also be able to bring them to the UK after Brexit. 

Irish border

Theresa May has guaranteed that there will be no hard border between the Republic of Ireland and Northern Ireland when Britain leaves the EU.

The PM also promised no border in the Irish Sea.

But the document does reveal that if Britain left the EU with 'no deal' the UK 'will maintain full alignment' with the EU on matters that 'support North-South cooperation'. 

This mean the 140 areas where North and South work together, such as energy, will continue.

Brexit bill

The text suggests Britain has agreed to pay the EU between £35billion and £40billion as part of the divorce package.

The document does not reveal the price but sets out how it will be calculated and confirms it will be be paid in euros.

The document says: 'The UK will contribute its share of the financing of the budgetary commitments outstanding at 31 December 2020'.

Britain will get around 12 installments of 300m euros back from the European Investment Bank from 2020.

The money will fall due over a number of years rather than all at once, and could be higher depending on the length of any transition period.

Despite Philip Hammond insisting this week that the UK should pay whether or not there is a trade deal, the document makes clear the cash is contingent on a final agreement being reached. 

An earlier outline of a deal on the key divorce issues was torpedoed by the DUP on Monday. The party objected to plans for 'regulatory alignment' between Northern Ireland and the Republic to maintain a soft border, arguing it would amount to the drawing of a new frontier with the UK mainland.

However, in the early hours of this morning Mrs Foster said she was now satisfied there would be no 'red line down the Irish sea'.

Mrs Foster told Sky News the PM had a text to present in Brussels in the 'national interest', although she also made clear she was not entirely happy with  the outcome. 

The agreement published today sets out that there will be enough 'regulatory alignment' with the EU to keep a soft border between Northern Ireland and the Republic and 'support North-South cooperation'.

But it also specifies that there will be no 'regulatory barriers' between Northern Ireland and the rest of the UK and the province's businesses will continue to have 'unfettered access' to the UK internal market. 

Speaking at a press conference in Dublin after the announcement, Irish PM Leo Varadkar said: 'We have achieved all that we set out to achieve.' 

But he added: 'There is no question of us trying to exploit Brexit as a means of moving to a United Ireland without consent.' 

Mr Varadkar also paraphrased Churchill, saying: 'This is not the end, but it is the end of the beginning.' 

Mrs May told her press conference that the agreement would guarantee the rights of three million EU citizens in the UK 'enshrined in UK law and enforced by British courts'.

She said that it included a financial settlement which was 'fair to the British taxpayer' and a guarantee that there will be 'no hard border' between Northern Ireland and the Republic, preserving the 'constitutional and economic integrity of the United Kingdom'.  

Mrs May said getting to this point had 'required give and take from both side'. She insisted EU citizens in the UK would be able to go on living as before, and there would be no hard border between Northern Ireland and the Republic.

In a nod to the painful way the talks developed, Mrs May said: 'Today's result is of course a compromise.'

She said: 'I believe that the joint report being published is in the best interests of the whole of the UK. 

'I very much welcome the prospect of moving ahead to the next phase, to talk about trade and security and to discuss the positive and ambitious future relationship that is in all of our interests. 

'I have consistently said that we will build a deep and special partnership with the EU as we implement the decision of the British people to leave at the end of March 2019. 

'Doing so will provide clarity and certainty for businesses in the UK and the EU and crucially for all our citizens.'  

The leaders appeared to be delighted to have made progress after an earlier outline of a deal on the key divorce issues was torpedoed by the DUP on Monday

The PM has been working through the night to strike a deal with the EU for trade talks to start

Mr Juncker's top aide Martin Selmayr tweeted a picture of white smoke in another sign that a deal has been done

Mr Juncker said negotiations had been 'difficult for both the UK and the EU'.

He said he had been assured by Mrs May that the arrangements had the 'backing of the UK government'.

The EU has been increasingly alarmed at the prospect of Mrs May being ejected from Downing Street and replaced by a harder line Brexiteer such as Boris Johnson. 

Businesses breathe 'huge sigh of relief' as Brexit talks move to trade

News that Brexit talks are set to move on to issues of trade and transition was welcomed by UK business leaders today. 

Stephen Martin, director general of the Institute of Directors, said: 'It went right down to the wire, but businesses will be breathing a huge sigh of relief.'

He added: 'The most pressing concern for UK companies has been their EU staff, who have urgently needed certainty about their future in this country'. 

In a statement, Dr Adam Marshall, director general of the British Chambers of Commerce , said: 'For business, a swift start to trade talks is crucial. Businesses want answers on what leaving the EU will mean for regulation, customs, hiring, standards, tariffs and taxes.

On citizens' rights, he added: 'The biggest priority for many firms since the EU referendum has been to get clarity and security for their European employees, whose contribution to business success across the UK is hugely valued.

'We are delighted that they, as well as UK citizens living and working in the EU, now have more clarity and can plan their future with greater confidence.' 

CBI deputy director-general Josh Hardie said: 'The Government has shown the impact of being determined to focus on securing a good Brexit for jobs. Discussions will continue to be tough, but today's progress shows that careless talk of walking away can be replaced by confidence that the UK can get a good deal. Steely determination in the national interest must always come first.'

The national chairman of the Federation of Small Businesses, Mike Cherry, said: 'The focus must now shift to the UK's future trading relationship with the EU. This should include, by early next year, a guarantee that there will be no cliff-edge moment on Brexit day, but instead an orderly, time-limited transition period so that small firms only have one set of rule changes. The final deal must have as few barriers to trade as possible.'  

Mr Juncker added: 'On the basis of the mandate which was given to me by the European Council, the Commission has just formally decided to recommend to the European Council that sufficient progress has now been made on the strict terms of the divorce.' 

In a potentially controversial passage of the text, the government has agreed that British courts will be able to refer issues about the rights of three million EU citizens in the UK to the European Court of Justice for eight years after Brexit.

The Government had warned to limit the role to five years, but Brussels was pushing for at least 15.

The document also sets out in detail how the divorce bill will be calculated - but does not give a figure. 

Billions of pounds will be returned to the UK from investments and other assets over the coming years - but it will be dwarfed by the liabilities Britain will cover. 

The UK will honour the commitments the EU entered into while it was a member on the basis of 'a percentage calculated as ratio between own resources made available by UK from the year 2014—2020 and own resources made available by all Member States, including UK, during same period'. 

The financial settlement 'will be drawn up and paid in euro' - meaning the cost in Pounds could depend on how the the currency markets view any final trade deal. 

Senior government sources said the final bill would be between £35billion and £40billion, although that could rise if the transition period ends up being longer than two years.  

Despite Philip Hammond insisting this week that the UK should pay whether or not there is a trade deal, the document makes clear the cash is contingent on a final agreement being reached. 

Cabinet ministers hailed the deal as a 'significant personal achievement' for Theresa May – and warned critics plotting against the PM to back off.

Environment Secretary and leading Brexiteer Mr Gove went on air on BBC Radio 4'sToday programme to back the deal and heap praise on Mrs May for thrashing it out.

He said: 'This is a significant personal political achievement for the Prime Minister

'Earlier this week, there were all sorts of doomsayers who thought there would be no prospect of an agreement. They've been proven wrong...

'The final whistle blew this morning and Theresa May won.' 

Mr Gove sought to reassure Tory MPs over the continuing role of the European Court of Justice for eight years after withdrawal.

He said 'it will be a matter for British judges to decide' what cases are referred to the court. 

Mr Gove also played down talk of a £48billion 'divorce bill', claiming it would be less than had been reported in the press, but refused to comment further on the figure. 

He said the PM could now work towards a free trade agreement with the EU covering both goods and services, no tariff barriers, a recognition of professional qualifications. 

The two-year transition period would mean the UK can 'iron out the details', he added. 

Mr Johnson, another senior Brexiteer who has been trying to toughen the government's stance, tweeted: Congratulations to PM for her determination in getting today's deal. 

'We now aim to forge a deep and special partnership with our European friends and allies while remaining true to the referendum result - taking back control of our laws, money and borders for the whole of the UK.' 

Health Secretary Jeremy Hunt also said the deal was a personal achievement for Mrs May.

Mr Johnson, another senior Brexiteer who has been trying to toughen the government's stance, tweeted his support but made clear the process has only just started

Health Secretary Jeremy Hunt insisted critics should recognise Mrs May's 'huge achievement'

Cabinet ministers James Brokenshire and Philip Hammond also rallied round the PM on Twitter, while Brexit minister Steve Baker - a prominent figure in the Leave campaign - said Mrs May had his 'full support'

He said on Twitter: 'Extraordinary achievement by @theresa_may today. Against all odds a deal delivered that confirms she is probably the only person in Britain able to deliver a good & clean Brexit

'Time for @theresa_may critics to recognise her extraordinary strength & resilience which, whatever the hurdles ahead, will deliver stage 2 just as it has delivered stage 1.'

Another prominent Brexiteer and former Northern Ireland Secretary Theresa Villiers also publicly-backed the deal this morning.

She told Today: 'There are some compromises in the document, which I would rather weren't there.

'But if we are going to make a success of this process and leave on orderly terms with a good relationship with our European partners, I'm afraid compromise is inevitable.'

In a sign the Cabinet is rallying round the PM, ministers were out in force on twitter today to express their support for the plan.

Steve Baker, a Brexit minister and one of the leading figures in the Leave campaign, said on Twitter: 'The Prime Minister has made important decisions in the national interest so we can move ahead to a successful EU exit. I am giving my full support.'

Chancellor Philip Hammond, seen as the champion of soft Brexit in the Cabinet, said: 'Today's announcement in Brussels is a boost for Britain's economy. Now let's conclude a trade deal that supports Britain's jobs, businesses and prosperity.'

Theresa May, Brexit Minister David Davis (left) and EU President Jean-Claude Juncker (second right) having a working breakfast at the EU Commission in Brussels

Mr Gove (left) heaped praise on Mrs May today and played down talk of a £48billion 'divorce bill', claiming it would be less than had been reported in the press. Speaking at a press conference in Dublin after the announcement, Irish PM Leo Varadkar said: 'We have achieved all that we set out to achieve.'

DUP MP Sammy Wilson said his party had secured all it needed from the new draft of the divorce agreement 

Labour also gave the outcome a cautious welcome, with shadow Brexit secretary Keir Starmer saying: 'Despite being two months later than originally planned, it is encouraging that the European Commission has recommended sufficient progress in the Brexit negotiations.

'The priority for both sides now must be to agree transitional arrangements on the same basic terms as we have now. That means staying in the single market and a customs union for a time-limited period.

'We will also need to know the political price of the deal struck and the impact any compromise that has been agreed will have on our future relationship with the EU.'

Nicola Sturgeon has welcomed a breakthrough in the first phase of Brexit talks but warned that the 'devil is in the detail' of the deal.

Scotland's First Minister said 'things now get really tough' after the European Commission announced that ''sufficient progress'' had been made to move negotiations on to the next phase.

But Tory MPs were far from happy with the detail of the deal. 

Philip Davies, the pro-Brexit Tory MP for Shipley, told MailOnline: ‘The way I would sum it up is that it is unacceptable in places, so in terms of the ongoing subservience of the European Court of Justice, the divorce bill payments, and some of the uncertainty around the customs union and single market in relation to northern Ireland.

‘Those things are unacceptable.

‘I suppose it was better than some of us feared it was going to be. I suppose a lot of it is about expectation management.' 

Sir Bill Cash, a leading Brexiteer and chairman of the European Scrutiny Committee, told MailOnline 'significant improvements’ have been made but the detail and meaning of the document will need to be pored over.

He said: ‘I think it’s quite clear that significant improvements have been made, and there are still matters to clarify, and as chairman of the European Scrutiny Committee we will be looking at the document as soon as possible.

‘Politically, some hurdles have been overcome, there is still some clarification needed but generally it’s a step in the right direction.'  

As the news unfolded overnight, European Council president Donald Tusk announced he would make a statement on Brexit in Brussels this morning, fuelling speculation a deal was close.

Mr Juncker held calls with Mr Varadkar then Mrs May yesterday evening. But it was not until around 5am that Downing Street confirmed the PM was travelling to Brussels to rubber-stamp the arrangements. 

The late-night talks came as Boris Johnson yesterday warned the PM not to make further compromises on Brexit. 

The Foreign Secretary said he backed Mrs May – but warned that she must not make any concessions that would prevent the UK 'taking back control of our laws, borders and cash' after Brexit. 

He said any deal must stick to the spirit of the Leave campaign he led, and the UK had already met the EU 'more than halfway' by offering a divorce payment of up to £40billion.

Asked if he was comfortable with a widespread 'regulatory alignment' between the UK and EU after Brexit, he added: 'You can take it from me that whatever comes up, whatever the solution that we come to, whatever we devise getting on to the body of the talks, it's got to be consistent, it's got to be consistent with the whole of the United Kingdom taking back control.'

Mrs May has faced a backlash from some Tory Eurosceptics after it emerged she had offered to guarantee some sectors of the economy would remain 'aligned' with EU regulations.

One DUP MP said: 'We've got loads of Tories coming up to us saying, 'Keep going, hang in there.' Theresa's problems aren't with us, they're with her own side.'

Government sources insist the plan would never be needed as the border issue will be solved by a comprehensive trade deal or a technological solution.

Mrs May told MPs this week that she was not compromising on her Brexit principles. But critics fear any concession could make it harder for Britain to strike free trade deals.

European Commission president Jean-Claude Juncker (right) held calls with Irish prime minister Leo Varadkar then Mrs May last night

Irish prime minister Leo Varadkar (pictured left) and DUP leader Arlene Foster (right)

Jean-Claude Juncker praises Theresa May's 'determination' after Brexit deal is done at the death

Theresa May and Jean-Claude-Juncker met as a deal was done in Brussels today

European Commission President Jean-Claude Juncker thanked Theresa May 'for her determination' as he announced the Brexit breakthrough.

He also praised the 'extremely hard and skillful work over the last weeks and months' of chief EU negotiator Michel Barnier, the UK's Brexit Secretary David Davis and their teams.

Here is what he told reporters about their early morning meeting in Brussels:

'We discussed the joint report agreed by the two negotiators.

'Prime Minister May has assured me that it has backing of the UK Government. On that basis I believe we have now made the breakthrough we needed.

'Today's result is of course a compromise. It is the result of a long and intense discussion between the Commission negotiators and those of the UK.

'As in any negotiation, both sides have to listen to each other, adjust their position and show a willingness to compromise.

'This was a difficult negotiation for the European Union as well as for the United Kingdom.

'On Wednesday, last Wednesday, the College of Commissioners gave me a mandate to conclude the negotiation of the joint report.

'And it had to be concluded today, not next week, today because next week we have the European Council and in order to allow our partners to prepare in the best way possible the meeting of the European Council, we had to make the deal today.

'On the basis of the mandate which was given to me by the European Council, the Commission has just formally decided to recommend to the European Council that sufficient progress has now been made on the strict terms of the divorce.'

'Breaking up is hard to do': Donald Tusk tells PM she has a year to finalise Brexit and warns she must pay billions to the EU but will have NO SAY during two-year transition

Donald Tusk told Theresa May today she has a just year to negotiate Brexit because 'so much time has passed'

A gloomy Donald Tusk today warned Britain: 'Breaking up is hard to do - but breaking up and keeping a good relationship is much harder' as the first Brexit deal was finally done.

The President of the European Council also told Theresa May she has a just year to negotiate Brexit because 'so much time has passed'.

Mr Tusk confirmed Mrs May would like a two year transition period after the UK leaves the EU in March 2019.

But in return he said the UK will have pay billions into the EU budget s but have no say on any decisions and will be excluded from summits.

It must also accept all new laws from the European courts.

Mr Tusk, said the bloc is already ready to start negotiating a transition period with Britain after it leaves the EU and said it wanted more clarity from London on how it sees their new relationship after leaving.

Tusk said Britain will have to respect all EU laws during the transition, as well as respect its budgetary commitments and the bloc's judicial oversight.

But it would no longer take part in decision-making that will be done by the 27 remaining states.

'We are ready to start preparing a close UK-EU partnership in trade but also fight against terrorism and international crime, as well as security, defence and foreign policy,' Tusk told reporters after British PM Theresa May arrived in Brussels with a Brexit deal.

Tusk said, however, too much time was spent on negotiating the outlines of Britain's exit, which he said was the relatively easier part.

'We all know that breaking up is hard but breaking up and building a new relation is much harder,' he said. 'So much time has been devoted to the easier task and now ... we have de facto less than a year,' left of talks before Britain is due to leave in March, 2019.

The President of the European Council also confirmed that Theresa May wants a two-year transition March 29, 2019 and said she has a year to negotiate Brexit

Mr Tusk confirmed that he has sent the leaders of the remaining 27 EU states proposed guidelines for a new mandate for chief negotiator Michel Barnier to begin negotiations on the transition period, as well as 'exploratory talks' on the future trade relationship.

Mr Tusk said he was proposing that, during the transition period of around two years after March 2019, the UK should be required to respect EU law - including any new laws which are passed by the EU27 without British involvement - and to respect its budgetary commitments and the judicial oversight of the ECJ.

On trade, he said 'more clarity' was needed from the UK on how it sees the future relationship after it has left the single market and customs union.

'We are ready to start preparing a close EU/UK partnership in trade, but also in the fight against terrorism and international crime as well as security, defence and foreign policy,' said Mr Tusk, adding that this would require further guidelines to be drawn up next year.

He added: 'While being satisfied with today's agreement, which is obviously a personal success for Prime Minister Theresa May, let us remember that the most difficult challenge is still ahead.

'We all know that breaking up is hard, but breaking up and building a new relation is much harder.

'Since the Brexit referendum, a year and a half has passed. So much time has been devoted to the easier part of the task, and now to negotiate the transition agreement and the framework for our future relationship we have de facto less than a year.'

Lovely to see EU! Relieved David Davis bear hugs Jean-Claude Juncker as Brexit deal is sealed 

David Davis and Jean-Claude Juncker couldn't contain themselves with their touch-feely greeting in Brussels this morning

A relieved David Davis hugged Jean-Claude Juncker as a Brexit deal was done at the last gasp.

The Brexit Secretary and Theresa May dashed to Brussels by private jet this morning after late night talks unlocked talks on trade.

The ministers arrived in the Belgian capital at around 6am and were greeted by resident Jean-Claude Juncker.

But while Mrs May got a kiss Mr Davis and went in for a bear hug after a long week of negotiations. 

During a breakfast meeting with the EU team Mr Davis was full of smiles and he looked relaxed while chatting afterwards with negotiator in chief Michel Barnier.  

Mr Davis said on Twitter: 'Today is a big step forward in delivering Brexit. Been a lot of work but glad the Commission have now recommended that sufficient progress has been reached.

'Citizens can now be confident about the rights they enjoy; we should now move forward to discuss our future relationship with the EU on issues like trade and security.'

Irish PM Varadkar claims victory as DUP say they saved the union - but admit they wanted May to wait longer for deal

A jubilant Irish Prime Minster today claimed victory in the Brexit deal - but the DUP say their intervention has saved the union.

Leo Varadkar and Arlene Foster have both signed up to a deal on the the Irish border in a last-minute major breakthrough for Brexit talks.

The early-morning deal came five days after the DUP torpedoed original plans amid fears the deal on the Irish border could tear the UK apart.

Both sides were claiming victory this morning - with Dublin insisting they have a secured 'all we set out to achieve' to ensure the border remains soft and peace maintained.

Arlene Foster (pictured today) and her DUP party say the six changes they have made to the deal has saved the union of the UK

While Mrs Foster's DUP party said they have made six 'substantial' changes to the deal which ensures Northern Ireland will keep the same rules as the rest of the UK and the border will not be pushed out to the Irish Sea.

At a press conference in Dublin this morning, Mr Varadkar said: 'We have achieved all we set out to achieve in phase one of these negotiations.

WHY IS THE IRISH BORDER SUCH A THORNY ISSUE? 

Why is the Irish 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.

What does each side want?

Dublin – backed by the EU – says there must be no 'hard border' involving customs checks fearing this could reignite violence and undermine peace.

Irish ministers have suggested Northern Ireland should stay inside the customs union. But Mrs May and the DUP ruled this out. The new deal explicitly says Northern Ireland will leave the customs union and single market with the rest of the UK.

Why was the last deal scuppered? 

Downing Street, Dublin and Brussels all thought they were ready to sign off on a deal on Monday.

But they collapsed at the eleventh hour when the DUP - who prop Theresa May up in No10 - pulled the plug amid fears only Northern Ireland would keep 'regulatory alignment' with the Republic post Brexit - effectively pushing border controls eastwards to the border with the rest of the UK.

What has changed?

The DUP say they have made 'substantial'  changes to the deal. This amounts to six all important clauses added in. They are: 

Northern Ireland will leave the EU. 

Northern Ireland will leave the customs union and single market alongside the rest of the UK.

There here will be no customs border in the Irish Sea.

Northern Ireland will  not be separated 'constitutionally, politically, economically or regulatory' from the rest of the UK.

There will be no 'special status' as Sinn Fein had demanded.

The UK is committed to retaining its own internal market. 

'We have the assurances and guarantees which we need from the United Kingdom, and support for them form the European Union.

'I'm satisfied that sufficient progress has now been made on the Irish issues - parameters have been set and they are good. Now we can move on to work out the detail of what has been agreed - to talk about the transition phase, free trade and the new relationship between the EU and the UK .

'Now we can move on to talk about the detail of what has been achieve

'This is not the end but it it is the end of the beginning and we will remain fully engaged and vigilant.'

He said Dublin has guaranteed the Good Friday Agreement is protected and that the common travel area and soft Irish border is maintained.

And he highlighted a potentially hugely clause in the new deal which promises the UK will keep 'full alignment' with the EU's single market and customs union if it does not secure anew deal to keep a soft border.

But the DUP - the small Northern Ireland party which is propping Mrs May up in No10 - said the deal is a victory for the unionists.

They hailed the 'substantial changes' they made to the text after they pulled the plug on an original deal when it was on the brink of being signed off by Brussels on Monday.

Mrs Foster said her party had been working with the Tories until the early hours of this morning to get six all-important new paragraphs inserted into the document.

She said this would guarantee the border cannot be pushed out to the Irish Sea - as originally proposed by Dublin - and rules out republican demands for 'special status' for the region.

She said: 'There will be no so-called 'special status' for Northern Ireland as demanded by Sinn Fein.

'Northern Ireland will not be separated constitutionally, politically, economically or regulatory from the rest of the United Kingdom.

'And the joint UK-EU report at the conclusion of phase one makes clear that in all circumstances the United Kingdom will continue to ensure the same unfettered access for Northern Ireland's businesses to the whole of the UK internal market.'

And while she warned there is 'still more work to be done' her party hailed their achievement as laying down in stone that the union will not be broken up.

Her chief whip in Westminster, Jeffrey Donaldson, said on Twitter: 'It's clear there will be no border in Irish Sea and no barriers to trade between NI (Northern Ireland) & GB (Great Britain)./

'NI will remain fully within U.K. Market. NI will leave Customs Union and Single Market with rest of U.K. Common Travel Area will be preserved. No hard border between NI and Irish Republic.

The DUP's chief whip in Westminster - who is absolutely crucial in propping Theresa May up in No10 - said the all important changes his party has  made to the deal will ensure Northern Ireland stays in the UK and prevents the break up the union 

 

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