A UK-EU trade deal could still be struck within days after Boris Johnson made a key concession, Michel Barnier has revealed.
Brussels’ chief negotiator claimed the PM had accepted the need for new post-Brexit rules to guarantee fair competition in future.
He said: “This deal, it is still possible.” It represents a shift for the UK on how to deal with regulatory standards such as workers’ rights or the environment.
But No 10 sources suggested talks remained “difficult” and insisted they would not sign up to sticking to changes “through the back door”.
One EU diplomat compared the tense negotiations to someone on life-support, saying: “Patient still alive... but keep the undertaker on speed dial.”

Britain was believed to want an “evolution clause” which would determine how closely we stick to future EU rules.
European Commission chief Ursula von der Leyen said the two sides were on the “very last mile” in negotiations.
She claimed talks on the “level playing field” were going well but details were to be agreed.
Confusion reigned last night as No 10 appeared to soften its stance that a no-deal Brexit was the “most likely” outcome.
It said leaving without a pact was a “possible” and “potential” conclusion.
But later a spokesman added: “The PM’s words that no-deal remains the most likely outcome stand.” Mr Johnson’s deadline to reach a trade deal passed on Sunday with no breakthrough.
But both sides vowed to push on and talks today continued. Officials refused to rule out the possibility they may stretch past Christmas Day.
But Business Secretary Alok Sharma insisted “we will not be continuing discussions beyond” the end of the transistion period of December 31.