Jean-Claude Juncker has said the chances of a Brexit breakthrough have increased in recent days - suggesting an agreement could be reached within the next two weeks - amid claims Brussels will offer the UK a Canada-style trade deal.
The president of the European Commission made the comments ahead of a critical summit later this month boosting hopes that an agreement might be reached.
Reports from Europe indicate the deal offered by Brussels will include parts similar to those in Theresa May’s Chequers plan, but would not deliver the totally “frictionless” trade she is seeking.
It comes ahead of a cabinet meeting next week when ministers are expected to discuss tweaks to Ms May’s proposals, to make them more amenable to the EU in order to secure the all important deal.
Ms May is under increasing pressure both in Europe and domestically, with The Independent reporting on Saturday how Brexiteer MPs are demanding she switch to a Canada-style arrangement.
Interviewed by three Austrian newspapers, Mr Juncker suggested a deal could even be done in time for the next EU summit in mid-October.
Asked if he thought it would be finalised at the meeting, Mr Juncker said: “I have reason to think that the rapprochement potential between both sides has increased in recent days.”
The Independent understands that the deal EU negotiators are thinking about would provide as frictionless trade as possible, without undermining the single market – their key concern about Chequers.
Furthermore they would include clauses that left open the possibility of further changes after Brexit day, meaning a future Tory or Labour leader could change the relationship.
However, since the beginning of negotiations the EU’s conception of a free-trade arrangement has been contingent on Ms May accepting different customs arrangements in Northern Ireland and mainland Britain, something she has already ruled out.
The Independent reported last week that the prime minister had been considering a tighter customs arrangement, and new concessions in relation to future European regulation, which are likely to be discussed by ministers in the coming week.
Both European negotiators and Tory MPs are said to have been heartened by Ms May abandoning the word “Chequers” in her party conference speech, as a sign that the UK position is evolving.
Ireland’s Europe minister Helen McEntee said: “I think in the next 10 days if there is a proposal, on its own it won’t resolve the border issue, but if something is legally sound and workable, I believe the [Brussels] will work with Ms May.
“The Prime Minister wants to reach an agreement because this is the best outcome for all of us. A cliff-edge or a no-deal scenario is something we shouldn’t even contemplate. Where the will is there it can be done, and I believe the will is there.”
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