Angela Merkel, the German chancellor, is worried that a no-deal could create divisions similar to the Iron Curtain

The EU is working on a strategy to avoid a “Brexit cold war” amid fears that relations between Brussels and London could break down completely after a no-deal Brexit.

Many EU countries no longer believe that the UK would come back to the table cap in hand within weeks of a no-deal, which had been the received wisdom, particularly in France.

European governments and diplomats, especially in Germany and the Netherlands, now fear that the acrimony of a no-deal could become a political conflict that drags on for years in a “Brexit cold war”.

EU officials hope that in such a scenario trade talks could act as a bridge to avoid permanently scarring relations. However, there are divisions on what terms and conditions