Boris Johnson has said unless there is a “fundamental change in approach” from the European Union then the UK will go for the “Australia solution” – Downing Street language for no-deal – in the Brexit trade talks.
The Prime Minister said the UK must prepared for no trade deal with the EU from January in a sign that negotiations with Brussels are coming to an end point.
In a tv clip the Prime Minister said if the EU comes back “with a fundamental change of opinion” then the UK will listen. But he said that does not sound likely after the summit.
He said: "And so with high hearts and with complete competence, we will prepare to embrace the alternative and we will prosper mightily as an independent free trading nation controlling our own borders, our fisheries and setting our own laws."
Both sides have indicated they want to carry on but the EU has said it is up to the UK to make the next move.
Speaking in Downing Street, Johnson declined to be drawn on whether the UK was now willing to walk away from the process amid differences over fisheries and competition policies.
The Prime Minister did not say that he would walk away from talks altogether and EU negotiator Michel Barnier is due for further talks in London on Monday.
Johnson said: "If there's a fundamental change of approach of course we're always willing to listen but didn't seem particularly encouraging from the summit in Brussels."
He added: "Given that they have refused to negotiate seriously for much of the last few months, I have concluded we should get ready for 1 January with arrangements more like Australia's based on simple principles of global free trade.
"So now is the time for our businesses to get ready, and for hauliers to get ready, and for travellers to get ready."
European Commission president Ursula von der Leyen said EU negotiators would still travel to London next week to “intensify” talks despite Boris Johnson’s comments.
She tweeted: “EU-UK talks: the EU continues to work for a deal, but not at any price.
“As planned, our negotiation team will go to London next week to intensify these negotiations.”
