Sides inch closer to new Brexit agreement

A potential Brexit deal was on the verge of being announced last night, but may require further talks on the edges of the EU leaders’ summit this morning after last-minute hitches to an agreement emerged.

The Irish Examiner understands that the EU’s chief Brexit negotiator Michel Barnier revealed the race against time to EU member-state ambassadors at a crucial briefing in which he confirmed the Northern Ireland issue is almost resolved.

After days of talks which dragged on into yesterday evening despite an initial Wednesday-morning deadline, it was widely predicted that a deal which could be put to the EU leaders summit on Thursday and Friday had finally been agreed.

EU sources said the deal is based on a breakthrough moment on the divisive issue of consent by Northern Ireland to any plan to treat the province differently to the rest of the UK, as it will be the only area to continue implementing EU customs rules.

This is needed in order to prevent a hard border, and will, in effect, create an EU border in the Irish Sea, effectively causing a soft Brexit for Northern Ireland and a hard Brexit for the rest of the UK.

During a lengthy briefing with EU member-state ambassadors tasked with recommending the deal plan to their countries, Mr Barnier is understood to have said the progress on Northern Ireland means that only Vat issues remain a problem.

However, while Mr Barnier said a deal is on the verge of being completed, the Irish Examiner understands he also suggested another ambassadors meeting will be needed this morning to try to finalise a position as talks are continuing.

This unheralded step — which came after yesterday’s ambassador meeting was delayed twice — would take place at the same time as the start of the EU leaders’ summit in Brussels.

It would also mean that while it is still possible for leaders to agree a deal today, they may instead have to approve a political declaration signposting a way forward, and leave open the option of another summit next week to finalise any agreement.

Asked about this prospect last night, a senior and well-placed UK source texted “fair reflection”, before underlining the changing nature of the situation by adding: “Probably.”

The developments came as French president Emmanuel Macron said last night he hopes a deal can finally be agreed “tonight”, adding he has been told the agreement is being “finalised”.

He was speaking during a joint press conference with German chancellor Angela Merkel in Toulouse, France, just before 6pm Irish time.

During an earlier press conference at the European Commission’s headquarters in Brussels, Finnish prime minister Antti Rinne said he would like to see a Brexit deal resolved “under this night”, but conceded it may not be concluded until Thursday or Friday.

Mr Rinne did not rule out a “technical extension” of a few days or an emergency EU summit being requested for next week or the week after, adding no one yet knows how it will all end, as: “I do not have a crystal ball”.

Negotiation teams have been meeting since Taoiseach Leo Varadkar and British prime minister Boris Johnson signalled a “pathway” to a deal last Thursday.

These meetings went through the weekend, continued on Monday until midnight, took place from 8.30am on Tuesday to 1.30am on Wednesday, and dragged on throughout yesterday.