Theresa May’s speech on Brexit talks failed to move beyond “vague aspirations” and did not lay out “credible legislative proposals” to break the deadlock in talks, the European Parliament’s Brexit coordinator has said.

Reacting after the Prime Minister’s third major speech on leaving the EU, Guy Verhofstadt said he hoped that “serious proposals have been put in the post” by the Prime Minister, as Ms May’s plans received a frosty reception in Brussels.

In her Mansion House speech the Prime Minister issued a warning to the EU that refusing to include financial services in a trade deal after Brexit would “hurt” its own economies, but admitted for the first time that the UK would lose some trade access to its biggest market.

But on key issues the Prime Minister appeared to dig in her heels, reiterating her suggestion of a technological solution to the Irish border issue and defending “cherry picking” parts of the single market for the UK to remain in.

The European Commission, which is in charge of day-to-day negotiations with Britain, offered little comment on the speech but said its content would inform the European Council guidelines on the trade negotiations, which are expected to be unveiled later this month.

Mr Verhofstadt said following the speech: “Theresa May needed to move beyond vague aspirations, we can only hope that serious proposals have been put in the post.

“While I welcome the call for a deep and special partnership, this cannot be achieved by putting a few extra cherries on the Brexit cake.

Commission negotiator said he welcomed the speech and that it would inform the EU's guidelines on trade

“Our relationship must be close and comprehensive, but this is only possible if the UK Government understands that the EU is a rules based organisation, as there is little appetite to renegotiate the rules of the single market to satisfy a compromise crafted to placate a divided Conservative party. “

“Prime Minister May’s re-confirmation of our December agreement on the Irish border is reassuring. We now need credible legislative proposals detailing how the UK seeks to achieve this in practice.”

The European Commission’s chief negotiator Michel Barnier took a less critical approach, tweeting: “I welcome Prime Minister Theresa May’s speech. Clarity about UK leaving single market and customs union, and recognition of trade-offs will inform European Council guidelines re: future free trade agreement.”

A Commission spokesperson confirmed that Mr Barnier’s tweet will be the extent of the Commission response to the speech.

Mr Barnier has repeatedly said that leaving the customs union and single market would see the inevitable erection of trade barriers between the UK and EU.

Manfred Weber, the leader of the centre-right European People’s Party, the largest group in the European Parliament, joined Mr Verhofstadt in criticising the speech.

The biggest issues facing UK on leaving EU Show all 8 1 /8 The biggest issues facing UK on leaving EU The biggest issues facing UK on leaving EU Post-Brexit immigration workers sorting radishes on a production line at a farm in Norfolk. One possible post-Brexit immigration scheme could struggle to channel workers towards less attractive roles - while another may heighten the risk of labour exploitation, a new report warns. PA The biggest issues facing UK on leaving EU Customs union A key point in the negotiations remains Britain's access to, or withdrawal from, the EU customs union. Since the referendum there has been hot debate over the meaning of Brexit: would it entail a full withdrawal from the existing agreement, known as hard Brexit, or the soft version in which we would remain part of a common customs area for most goods, as Turkey does? No 10 has so far insisted that “Brexit means Brexit” and that Britain will be leaving the customs union, but may be inclined to change its position once the potential risks to the UK’s economic outlook become clearer. Alamy The biggest issues facing UK on leaving EU Northern Ireland-Irish border Though progress was made last year, there has still been no solid agreement on whether there should be a hard border between Northern Ireland and the Republic of Ireland. To ensure borderless travel on the island, the countries must be in regulatory alignment and therefore adhere to the same rules as the customs union. In December, the Conservative Party’s coalition partners, the DUP, refused a draft agreement that would place the UK/EU border in the Irish Sea due to its potential to undermine the union. May has promised that would not be the case and has suggested that a “specific solution” would need to be found. Getty The biggest issues facing UK on leaving EU Transition period Despite protests from a small number of Conservative MPs, the Government and the EU are largely in agreement that a transitional period is needed after Brexit. The talks, however, have reached an impasse. Though May has agreed that the UK will continue to contribute to the EU budget until 2021, the PM wants to be able to select which laws made during this time the UK will have to adhere to. Chief negotiator Michel Barnier has said the UK must adopt all of the laws passed during the transition, without any input from British ministers or MEPs. EPA The biggest issues facing UK on leaving EU Rights of EU citizens living the UK The Prime Minister has promised EU citizens already living in the UK the right to live and work here after Brexit, but the rights of those who arrive after Brexit day remains unclear. May insists that those who arrive during the transition period should not be allowed to stay, whereas the EU believe the cut-off point should be later. Getty The biggest issues facing UK on leaving EU Future trade agreement (with the EU) Despite this being a key issue in negotiations, the Government has yet to lay out exactly what it wants from a trade deal with the EU. Infighting within the Cabinet has prevented a solid position from being reached, with some MPs content that "no deal is better than a bad deal" while others rally behind single market access. The EU has already confirmed that access to the single market would be impossible without the UK remaining in the customs union. Getty The biggest issues facing UK on leaving EU Future trade agreements (internationally) The Government has already begun trying to woo foreign leaders into prospective trade agreements, with various high profile state visits to China, India and Canada for May, and the now infamous invitation to US President Donald Trump to visit London. However the UK cannot make trade agreements with another country while it is still a member of the EU, and the potential loss of trade with the world's major powers is a source of anxiety for the PM. The EU has said the UK cannot secure trade deals during the transition period. EPA The biggest issues facing UK on leaving EU Financial services Banks in the UK will be hit hard regardless of the Brexit outcome. The EU has refused to give British banks passporting rights to trade within the EU, dashing hopes of a special City deal. However according to new reports Germany has suggested allowing trade on the condition that the UK continues paying into the EU budget even after the transition period. Getty

“After what I have heard today I am even more concerned,” he said. “I don’t see how we could reach an agreement on Brexit if the UK government continues to bury its head in the sand like this.”

Mr Weber’s EPP includes Angela Merkel’s CDU party and is also the home of Jean-Claude Juncker, the European Commission president, and Donald Tusk, the European Council president.