FILE PHOTO: British and EU flags flutter outside the Houses of Parliament in London, Britain January 17, 2019. REUTERS/Clodagh Kilcoyne/File Photo

LONDON (Reuters) - The European Union is war-gaming for the collapse of Prime Minister Theresa May’s government after her Brexit divorce deal suffered two crushing defeats, the Observer newspaper reported.

EU officials are concerned that the prime minister has little chance of passing her divorce deal if she brings it back before parliament for a third time next week, the newspaper said.

A diplomatic note between European ambassadors and senior officials reveals an attempt to ensure that May’s successor would not be able to unpick the divorce deal agreed between Britain and the EU last year, the Observer said.