Michel Barnier hints talks on a Brexit trade deal will collapse if the UK doesn’t sign up to ALL European rules

In a speech to the Centre for European Reform which will enrage Eurosceptics, Mr Barnier insisted that any attempt to create new rules after Brexit even on domestic issues such as farming and healthcare will meet fierce resistance from the EU.

Speaking in Brussels, the Eurocrat also:

• Told the Government to “be careful” about junking ANY European laws once we quit the EU
• Warned that EVERY national parliament in the EU will have a veto over the post-Brexit trade deal
• Insisted we cannot trade freely with Europe if we don’t keep our borders open
• Refused to come up with solutions to avoid a hard border in Ireland, saying that Brexiteers must provide the answer
• Confirmed that London’s banks will need to set up branches in Europe after Brexit

Mr Barnier, who has been hammering out the terms of Brexit opposite David Davis, insisted today he is optimistic that Britain and the EU will agree an “ambitious” trade deal.

But in a downbeat assessment, he added: “It is not only about rules or laws, it is about society’s choice for health, food standards, our environment and financial stability. “The UK has chosen to leave the EU. Does it want to stay close to the European model or does it want to gradually move away from it? “And the UK’s reply to this question will be very important and even decisive, because it will shape the discussion on our future partnership. “It will shape - be careful - the conditions for ratifications of that partnership in many national parliaments and obviously in the European Parliament. “I don’t say that to create problems, I just say that to avoid problems.”