France sees Brexit deal as possible, but must prepare for no deal

Pound Sterling notes and change are seen inside a cash resgister in a coffee shop in Manchester

"At this late stage in the negotiation, it is not acceptable to simply reject the other side's proposals without a detailed explanation and counter proposals".

The pound fell sharply as May delivered the angry retort, as markets assessed that the chances of "no deal" have risen. Brexit supporters say such fears are exaggerated and Britain would thrive in the long term.

Mrs May tried to sell her proposals for the UK's future relationship with the European Union at a summit in Salzburg, Austria, this week. "Until we do, we can not make progress", she added.

If it left without a deal, the country would move from seamless trade with the European Union to customs arrangements set by the World Trade Organization for external states. But it is opposed by some within her own party who argue that it would compromise the UK's sovereignty.

Her divorce proposal envisions a UK-EU free trade area for goods through a common rulebook.

Mrs May said the European Union were only offering two options regarding trade: the United Kingdom staying in the European Economic Area (EEA) and a customs union, or a basic free trade agreement for Great Britain with checks at the border.

The Dutch prime minister just stood... and said the Netherlands is better prepared for no deal than the UK.

In Berlin, German Deputy Foreign Minister Michael Roth said on Twitter the other 27 European Union states were striving to achieve reasonable solutions, and that "the blame game against the EU" was "more than unfair".

"That is the best way to protect jobs here and in the European Union and to avoid a hard border between Ireland and Northern Ireland".

"That is not going to happen", he told the BBC's Politics Live. Many are pushing for a new referendum that would let voters choose between accepting whatever deal she manages to negotiate with the bloc and staying in the EU. "We have to have a "Plan B" now - "Plan A" is out of the window".

"It would be bumpy, it would be hard, but we would find a way to survive and prosper as a country", he said.

"The EU are making a mistake if they think I will agree to that.I have treated the EU with nothing but respect - we expect the same.we can not accept anything that does not respect the referendum result".

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He said May was "a very stoic, resilient character".

"The events of the last 24 hours have made one thing abundantly clear - negotiators on both sides must change tack", said Carolyn Fairbairn, director-general of the Confederation of British Industry.

But London strongly rejects treating any province in Britain differently and ruled out having any internal customs checks.

"May humiliated", The Guardian newspaper said.

Opposition Labour leader Jeremy Corbyn said the prime minister's negotiating strategy had been a "disaster".

"Likewise her determination not to erect barriers between Northern Ireland and the Irish Republic is sensible and something many have previously suggested".

EU Council President Donald Tusk used a satirical Instagram post showing him giving May some candies with the caption "Sorry, no cherries" - a reference to the EU's refusal to allow Britain to cherry-pick what aspects of EU membership it would like to keep after Brexit.

"While understanding the logic of the negotiations, I remain convinced that a compromise, good for all, is still possible".

"Your Brexit's broken", the Daily Mirror newspaper said on its front page.

She said: "The Prime Minister's statement was awful".

Tusk and Macron tore into May's so-called Chequers plan, which they believe will fragment the bloc's prized single market and "not work".

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