EU leaders warn Theresa May she must rethink Chequers blueprint

EU leaders have warned Theresa May she will have to rethink her Chequers blueprint for Brexit, saying the plan will not work in its present form.

Following a working lunch of the remaining 27 at the informal summit in Salzburg, European Council president Donald Tusk said that while there were “positive elements” in the Chequers plan they could not accept any proposal which threatened the single market.

“Everybody shared the view that while there are positive elements in the Chequers proposal, the suggested framework for economic co-operation will not work, not least because it is undermining the single market,” he said.

Mr Tusk said the “moment of truth” in the negotiations would now come at the next full summit in October.

“In October we expect maximum progress and results in the Brexit talks and then we will decide whether conditions are there to call an extra summit in November to finalise and formalise the deal,” he said.

He added: “Today I am a little more optimistic when it comes to a positive outcome of our negotiations.

“Unfortunately we cannot at this stage exclude a no-deal – it depends on both sides of negotiations.”