EU agrees to begin preparing for Brexit trade talks

European Council President Donald Tusk has said EU leaders have given the “green light” for internal preparations to begin on post-Brexit trade talks.

While representing progress in the strained Brexit negotiations in Brussels, Theresa May had hoped by October to kick-start discussions with the other 27 EU leaders on a future trade deal – often referred to as 'phase two' of the negotiations.

But the move does pave the way for the possibility of formal talks beginning on the future trade relationship in December at the next scheduled Council summit.

Until then, formal discussions in Brussels with the UK will continue to focus on the highly contentious issue of Britain’s financial settlement – often referred to as the “divorce bill” – and the issue of citizens’ rights and the Irish border.

Council President Mr Tusk said in a tweet: “Brexit conclusions adopted. Leaders green-light internal EU27 preparations for 2nd phase.”

The comments came after Angela Merkel, the German Chancellor, provided hope that there will eventually be success in the negotiations as she rebuffed suggestions that talks might collapse.

“As far as I am concerned, I don’t hear any reason to believe that we are not going to be successful,” Ms Merkel told an early-hours press conference in Brussels during a meeting of the European Council.

She added: “I have no doubt that if we are all in clear minds… we are going to achieve a good outcome.”

Speaking in Brussels, Ms May added that she is “ambitious and positive” for the negotiations but there is still “some way to go” in the talks.

At a press conference after her participation in the summit concluded - and while the remaining 27 leaders continued their discussions - Mrs May said: “I am ambitious and positive for Britain's future and for these negotiations.

”But I know we still have some way to go. Both sides have approached these talks with professionalism and a constructive spirit and we should recognise what has been achieved to date.“

Pressed on reports that the Government was planning an ”upbeat“ assessment of a no-deal scenario, the PM said: ”I have been clear that we have been working for a good deal and I am optimistic about getting that.

“But, as I have said, and others have said consistently, it would be irresponsible for the British Government not to look across at the changes that will be necessary regardless of the eventuality.

”And, indeed, some of the changes that will be necessary ... in the event of a no deal would be the same as changes that would be made in relation to us achieving a deal.

“And, when the Cabinet comes to look at this it will be looking across the board at what work is being done across Government departments for all eventualities, and that includes for getting the good deal, the positive deal, that I am confident that we can achieve, and we have seen from European leaders here, believe is achievable as well.”