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Brexit: EU leaders say UK has not made 'sufficient progress' on withdrawal terms Brexit: EU withdrawal bill debate delayed after 300 amendments demanded by MPs
(about 13 hours later)
EU leaders are set to refuse to move to the second phase of Brexit negotiations due to the the UK having not made "sufficient progress" on withdrawal terms, according to a statement drafted by Donald Tusk, the President of the European Council, before next week's crunch summit.  The Government’s key piece of Brexit legislation has been delayed due to a major push from MPs to force changes to it.
The move is a significant setback for the British government, who have appealed to the EU to break the current deadlock. The EU withdrawal Bill will now not be debated next week after some 300 amendments were demanded by MPs, with many of them thought to enjoy enough support among Conservative MPs.
A one-page statement will be the main outcome from the summit, where the 27 member states will meet to discuss the course for the negotiations over the coming months.  If Theresa May were to suffer a defeat at the hands of Labour and Tory rebels on her critical piece of Brexit legislation it would once again call into question the credibility of her administration.
European Union leaders are also expected to demand that Britain improves its withdrawal terms and offer London the prospect of a rapid move to free-trade talks in December if that happens. It came after the EU’s chief negotiator Michel Barnier warned of a “disturbing” deadlock in Brexit negotiations, with Ms May facing pressure to make further concessions to move talks on to future trade.
In a substantial gesture towards British Prime Minister Theresa May, the draft says the EU should launch immediate internal work on possible transitional arrangements in order to be able to move ahead with negotiations on a future relationship as soon as possible. Leader of the House Andrea Leadsom confirmed that the Government was not yet ready to take its Brexit Bill before the House of Commons.
"At its next session in December, the European Council will reassess the state of progress in the negotiations with a view to determining whether sufficient progress has been achieved," the draft says. She said that as well as the 300 amendments, some 54 new clauses have also been proposed by MPs who have concerns.
Mr Tusk has discussed the strategy with all 27 leaders but the text may change after the summit. Currently the draft outlines areas where there has been progress but also notes that more work is required for the divorce settlement.  Around 13 are thought to have enough support from Tories to see the Government defeated in a Commons vote, with ex-attorney general Dominic Grieve leading a drive to tighten up the legislation’s language.
The draft comes after the European Commission blamed the UK for a hole in the talks schedule on 11 October. Britain's negotiating team strenuously denies it was responsible for the gap in proceedings and says the break was mutually agreed by both sides. Ms Leadsom told MPs: “Those proposals are being closely evaluated.
Mr Tusk said if negotiations continued at the current “slow” rate then both sides would have to “think about where we are heading”. “That is taking a bit of time so that we give proper, thoughtful, well considered responses to them. We will, of course, be bringing forward the Committee of the whole House just as soon as we are able to do so.”
This week's fifth round was the final scheduled round of Article 50 talks; more rounds are expected to be scheduled in due course. Labour seized on the delay calling for Ms May to change the Bill, claiming it was not going before the Commons next week because the Government was afraid pro-Europe Tory rebels would back amendments to it.
Shadow Brexit Secretary Sir Keir Starmer told the BBC: “The Tories' Repeal Bill is simply not fit for purpose.
“It would give huge and unaccountable power to ministers and puts vital rights and protections at risk.
“Theresa May must start listening to the legitimate concerns of Labour and some of her own MPs by urgently changing approach.”
Ms May is caught in a Brexit trap after EU leaders ruled Britain must pay up to secure future trade talks, while her own MPs demanded she make no more concessions.
The heads of the EU states agreed the UK had not made “sufficient progress” on the withdrawal divorce terms, according to a leaked statement drafted by Donald Tusk, the President of the European Council, just hours after confirmation that the talks are deadlocked.
They backed the EU’s chief negotiator Mr Barnier, after he said negotiations over future trade with Britain would be blocked until Ms May gave ground on paying the UK’s Brexit “divorce” bill and guaranteeing citizens’ rights.