MICHEL Barnier has ripped Theresa May's Brexit plans to shreds today - just hours after she insisted it was still the best option.

The EU's chief Brexit negotiator laid into the PM's Chequers deal and white paper, saying her plans could open up Europe to more fraud and red-tape after we quit the bloc.

4 Michel Barnier tore chunks out of Theresa May's Brexit plans today Credit: AFP or licensors

He said Mrs May's idea for the UK and the EU to collect tariffs on goods on behalf of each other might not work legally.

In a hard-hitting press conference in Brussels this lunchtime he raised a series of problems with her deal, saying: "Is there not a major risk of fraud, and additional costs for business given the dual system?

"Brexit cannot and will not justify additional bureaucracy."

His devastating intervention is the first time the EU has been open about its thoughts on the soft-Brexit Chequer's deal since Mrs May signed the Cabinet up to it two weeks ago.

Since then she's has a string of resignations from her top team, including Brexiteers Boris Johnson and her ex-Brexit Secretary David Davis.

4 He said Mrs May's plans could be open to more fraud, and they might not be legally tight Credit: AFP or licensors

4 Theresa May has called on Brussels to work with the UK to be more flexible Credit: Getty Images - Getty

But today Mr Barnier pulled no punches when he took apart Mrs May's ideas, hinting they would not be "workable".

Also in the speech he said:

Mrs May's plans would make trade between the UK and the EU "more complex"

That Britain's ideas for the UK to collect tarriffs on the EU's behalf may not be "legally feasible"

His No 1 aim was to protect Europe at all costs and her ideas would spark "unfair competition" if we diverged from EU rules on services

Warned that Theresa May's plans would break up the EU's four freedoms and the other 27 states wouldn't accept that

After discussions with EU27 ministers today, he said: "There are some elements that appear to contradict our guidelines, namely the indivisibility of the four freedoms."

In a brutal slap down, he said: "We're not going to negotiate on the basis of the White Paper because that's the British paper.

"There were questions that do give rise to a few problems. There are some elements which do seem to contract the guidelines of the EU Council.

"There is no justification for us for the EU running the risk of weakening the single market. That is our main asset."

And in a sign the EU is aware of just how fragile Mrs May's position is, and that more concessions could be on the cards, he added that the "very intense internal debate in the UK is not over yet".

Despite the warnings Mr Barnier he was open to any solutions on how to solve the Northern Ireland border issue - but stressed that they had to be "workable".

He said that there had to be a backstop solution - even though Mrs May has ruled out his ideas already.

What does Michel Barnier mean that the UK's plans could increase fraud? THERESA May wants a new system of trade with the EU, where both sides collect tariffs on behalf of the other. THERESA May's plans for post-Brexit trade with the EU would see us both collecting tariffs on behalf of the other. If goods come into the UK through the EU, they will collect our duties, and vice versa. But Michel Barnier and the EU don't like this ideas, because it could prove complicated if we choose to slash our tariffs compared to what the EU charge. He implied today that if the UK's are lower than the EUs, then countries could fraudulently say they are heading to the UK and get charged a lower rate - even if they are staying within the EU. The UK is currently a part of the EU's customs union, where its members impose the same tariffs on imports from non-EU countries, and they can generally trade freely among each other. But after we leave the bloc, we will get the freedom to set different rates to what the EU currently has. If we slashed our rated to zero, it would make trading with us more competitive and take trade away from the EU - which it is keen to avoid.

Theresa May demands new deal from EU on Irish border backstop as Brexit white paper row escalates

The Frenchman was careful not to trash every bit of the plan - saying it was positive in some ways.

And he even hinted that a deal on security cooperation would be on the cards, something he has previously said wouldn't be possible.

EU diplomats told The Sun that Britain's new plan, which includes an increased role for the ECJ, also went down well with ambassadors at a meeting earlier this week.

The backlash over her plans comes just days Britain and the EU said they would step up their plans for a hard Brexit.

Mrs May said ministers would be handing out advice to businesses, and the EU would tell other states to prepare too.

Mr Barnier added today: "We have to step up preparation at all levels for all scenarios.

"We are encouraging national administrations and companies to use the time we have to accelerate this preparation."

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4 Theresa May insisted that it's now up to the EU to compromise in Brexit talks after she softened her stance Credit: Getty Images - Getty

His speech comes just hours after the Prime Minister defended her deal once more - and vowed it was the only way to protect jobs and deliver on the referendum promises.

In a landmark speech in Northern Ireland she invoked the spirit of Winston Churchill to explain why she would NEVER break up the UK.

And she insisted the EU must soften its stance after she "evolved" her position to be more accommodating, demanding they abandon their "unworkable" solutions.