Only 'Miracles' Can Move Brexit Talks Forward By October, EU Tells Britain

She had hoped that a speech she made at Florence on Friday would unblock the three-month-old talks and paving the way for the European Union to open discussions on a post-Brexit free trade deal by allowing Barnier to tell European Union leaders that there is "sufficient progress" on three key "divorce" issues - rights for expatriate citizens, the Northern Irish border and how much Britain owes.

He said: "By the end of October we will not have sufficient progress".

By the end of October, the EU and the United Kingdom will not have made sufficient progress in their Brexit talks to move them on to discussions about the future relationship between Britain and the European Union, according to the European Commission President Jean-Claude Juncker.

She did not say whether she thought EU regulations passed during the transition period would be matched by Britain but said, on EU law, that British courts would be able to take European Courts of Justice rulings into account. "I'm saying there will be no sufficient progress from now until October unless miracles will happen".

Representatives of the remaining 27 member states are expected to decide whether to give the go-ahead for the next stage of negotiations when they descend on Brussels for the next meeting of the European Council on October 19.

While she carefully avoided the apparent threat to withdraw co-operation in her letter triggering the start of the Article 50 talks on Britain's withdrawal, she nevertheless underlined the UK's contribution as one of the most capable military powers in the EU.

European Union negotiators are expecting Britain to accept the divorce costs of around £40 billion and also agree on a way to ensure the legal rights of European Union citizens living in the UK.

May had made pledges on the divorce bill and citizens' rights, which were well received in Europe's capitals.

She highlighted the fact that Britain and the European Union start with identical regulatory standards and said she wanted "a practical approach to regulation that enables us to continue to work together in bringing shared prosperity to our peoples".

Even so, both sides said some progress had been made.

"We will continue to work with our North Atlantic Treaty Organisation allies, our European neighbours and the EU to support a future partnership of unprecedented breadth and depth, that will guarantee the security and stability of the continent for generations to come". "Further gradual adjustment in short-term interest rates based on an economy growing above trend...will be important if we want to continue this long expansion", George said. Barnier said Thursday that progress had been made but a "big gap" remained in some areas.

"The only way to reach sufficient progress is that all commitments undertaken at 28 [member states] are honored at 28", the former French government minister said.