Leading Conservative Brexiteers have insisted that their favoured solution to the Brexit backstop remains “alive and kicking” following talks with Theresa May.
The discussions at Westminster came after chief EU negotiator Michel Barnier raised concerns over whether the so-called Malthouse Compromise is viable.
The compromise – drawn up by MPs from both the Leave and Remain wings of the Tory Party – is seen by many Brexiteers as a means to get rid of the backstop arrangements which they fear will subject the UK to EU rules indefinitely after withdrawal.
The plan would replace the backstop with a free trade agreement along with technological methods for keeping the Irish border open after Brexit. If this was not acceptable to Brussels, a Plan B would see the UK leave without a deal but with a transition period extended to the end of 2021 to allow time to prepare.
The PM’s official spokesman declined to respond to reports that Mrs May told Cabinet the Malthouse plan would not form part of proposals she will put to European Commission president Jean-Claude Juncker on Wednesday.
Instead, he pointed reporters to a statement issued by the Department for Exiting the EU following Stephen Barclay’s meeting with Mr Barnier, confirming that they had discussed the Malthouse Compromise.
The statement said: “While the Commission engaged seriously with these proposals, it expressed concerns about their viability to resolve the backstop.
“We agreed to keep exploring the use of alternative arrangements – especially how they might be developed to ensure the absence of a hard border in Northern Ireland on a permanent footing, avoiding the need for the backstop to ever enter force.”
The statement sparked speculation that the Malthouse plan was being taken off the table.
But after their talks with Mrs May, the chairman of the European Research Group of eurosceptic Tories, Jacob Rees-Mogg, and his deputy Steve Baker said in a joint statement: “The Malthouse Compromise is alive and kicking.
“The Secretary of State for Exiting the EU can provide details. We look forward to further developments. We look forward to further precision about exactly what we will be asked to vote for.”
Mrs May’s meeting with Mr Juncker comes as she fights to finalise an alternative EU withdrawal plan to present to the House of Commons ahead of the next round of key Brexit votes on February 27.
But Mr Juncker told reporters in the German city of Stuttgart: “There is not enough movement for me to be able to assume that it will be a productive discussion. I don’t know what Mrs May will tell me tomorrow.”
He later said he was not expecting a breakthrough. His deputy chief spokeswoman Mina Andreeva quoted him as saying: “I have great respect for Theresa May, for her courage and her assertiveness. We will have friendly talks tomorrow but I don’t expect a breakthrough.”
Mr Barclay is also due to make a further visit to Brussels later this week as the UK seeks EU approval for changes to the backstop – an insurance arrangement designed to avoid a hard Irish border after Brexit by keeping the UK in a customs union until a wider trade deal is agreed.
Mrs May’s spokesman confirmed that the PM is still committed to reopening the Withdrawal Agreement agreed with the EU last November.
The PM is looking for concessions that will enable her to get her deal through Parliament after it was comprehensively rejected by MPs in last month’s “meaningful vote”.
But the European Commission issued a fresh warning that it is not ready to renegotiate the deal.
At a daily briefing for journalists in Brussels, Commission spokesman Margaritis Schinas said the EU side wanted an “orderly” withdrawal by the UK on March 29 as planned.
But he made clear the EU was not prepared to give ground on Mrs May’s key demands – either to include an exit clause or a time limit on the backstop, or to replace it with an alternative arrangement.
“The EU will not reopen the Withdrawal Agreement. We cannot accept a time limit to the backstop or a unilateral exit clause,” he said.
“Further talks will be held this week to see whether a way through can be found that would gain the broadest possible support in the UK Parliament and respect the guidelines agreed by the European Council.”
Meanwhile, a Government minister suggested MPs could act to delay Brexit and extend the Article 50 withdrawal process rather than allow the UK to crash out without a deal.
Business Minister Richard Harrington told a manufacturers’ conference in London: “I do not believe there will be a no-deal Brexit. The reason I don’t believe that is because I think the Prime Minister’s deal will go through.
“But if it doesn’t get through, before then Parliament will have taken control, we will have a small extension to Article 50 and Parliament will then decide on alternatives.
“I believe that will become the Plan B.”
Ahead of his meeting with the Prime Minister, Mr Juncker said he could not rule out an extension to Article 50 which would keep the UK in the EU beyond European Parliament elections due in the spring.
Mr Juncker told a press conference in Stuttgart that the UK could ask for an extension “tomorrow” and he expected it would be greeted “positively” by other EU governments.