- 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
Published: 01:03 EST, 8 December 2017 | Updated: 03:07 EST, 8 December 2017
Theresa May finalised a deal with the EU today that will unlock talks on trade after frantic night-long negotiations.
At a dramatic early morning press conference, a bleary eyed PM and Jean-Claude Juncker confirmed agreement had been reached.
'I believe we have now made the breakthrough we need,' Mr Juncker said.
Mrs May said the settlement was 'in the best interests of the whole of the UK'. Despite criticism of an estimated £50billion divorce payment, she also said it was 'fair to the British taxpayer'.
But tempering the 'personal victory' for Mrs May, 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 laws, even though it will have no say over how they are decided.
There is also set to be a backlash over the huge divorce bill and pledges to accept the power of European Courts for years to come.
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.'

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


Mrs May and Mr Juncker both stressed how hard they had needed to work to get this far – and pointed out there was still much more to do


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


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


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.
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.
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.
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
Britain are rumoured to have agreed to pay the EU around £40billion as part of the divorce package.
The document does not reveal the price but sets out the timescale but says 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.
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' 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.
The PM told the 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.'
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.
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 EU citizen's rights to the European Court of Justice for eight years after Brexit.
The document also sets out in detail how the divorce bill will be calculated.
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 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
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'.
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.
European Commission president Jean-Claude Juncker held calls with Irish prime minister Leo Varadkar then Mrs May yesterday evening.
His chief spokesman Margaritis Schinas said a morning meeting between Mr Juncker and Mrs May that would allow negotiations to move forward was 'possible'. He said: 'We are making progress but not yet fully there. Talks are continuing throughout the night.'
No 10 said Mrs May had also spoken to Mr Varadkar. 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 to achieve a breakthrough – 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.


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


DUP leader Arlene Foster made clear she is now content with the version of the divorce deal text, but said she had wanted to spend longer working it through


European Council president Donald Tusk (pictured) last night announced he would make a statement on Brexit in Brussels this morning, fuelling speculation a deal was close
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.
IRISH BORDER DEAL MEANS NO 'RED LINE' INSIDE THE UK
The issue of the border between Northern Ireland and the Republic threatened to collapse the talks.
The agreement published today sets out that there will be enough 'regulatory alignment' 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.
DUP leader Arlene Foster said she was now satisfied there would be 'no red line in the Irish sea' after sox substantive changes were made.
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)
Senior Tories are also concerned about proposals that could allow the European Court of Justice to have an indirect role in overseeing the rights of 3million EU citizens in the UK.
The Government is thought to be seeking to limit the role to five years, but Brussels is pushing for it to last at least 15.
Labour MP Gisela Stuart, another leading Leaver, also warned against concessions that could limit flexibility. She said following rules dictated by Brussels would be 'single-market membership in all but name'.
One senior Eurosceptic MP said it was time for Mrs May to put pro-Remain Whitehall mandarins 'back in their box'. They said: 'There needs to be much more direction, conviction and certainty from the top.'
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.'
Original Article