Germany expects Brexit secretary David Davis to offer his "unconditional surrender," to the EU's terms when he delivers a keynote speech to trade chiefs in Berlin on Thursday evening, the former president of the country's largest trade body has warned.

Hans-Olaf Henkel, the former head of the Federation of German Industries (BDI) , said both the German government and businesses wanted to see major concessions from Mr Davis on the so-called Brexit bill and transitional arrangements.

It comes after Michel Barnier, the EU's chief negotiator, demanded Britain offer more clarity on the bill if EU leaders were to agree to open discussions on future relations, including a trade deal, at their December summit.

Meanwhile, the current director general of BDI, Joachim Lang, has called on Theresa May to agree to a transition period of more than two years, which he said was not enough time to set up the necessary legal framework.

“I think what the German government wants is identical to what Michel Barnier and [European parliament MEP] Guy Verhofstadt want,” Mr Henkel told the Telegraph.

“The BDI has consistently followed the line of the German government on this... if I were to use a military term, what they want is unconditional surrender.”