Theresa May insisted her offer to let 3.2million EU nationals stay after Brexit was 'fair' today - despite it being bluntly dismissed by top Eurocrats today.

The PM defended her bid to break the deadlock on reciprocal rights for citizens, making clear she was determined to take back control of the UK's borders and laws.

But European Council president Donald Tusk complained that the proposals were 'below our expectations'.

And EU commission chief Jean-Claude Juncker waded in to brand the plan 'not sufficient'.

With formal Brexit negotiations less than a week old, the stage is now set for a major row over whether European courts can keep meddling after we leave.

Some EU figures are pushing for its citizens to keep rights in the UK that would be superior to those of Britons.

Under Mrs May's plans, unveiled on the eve of the anniversary of the Brexit referendum, EU nationals who have lived in the UK for five years by a specific cut-off date would be given the chance to take up 'settled status'.

Theresa May said today she was convinced the UK proposals were 'fair and serious'

European Council president Donald Tusk told a press conference this afternoon that the plans were 'below our expectations'

But Jean-Claude Juncker (pictured arriving at the Brussels summit this morning) bluntly said the proposals were 'not sufficient'

Mrs May, pictured walking into the summit venue with the UK's representative in Brussels Sir Tim Barrow today, will give a press conference later

They would be granted the same rights as British citizens to stay in the country and receive healthcare, education, welfare and pensions.

Those resident for a shorter period will have the opportunity to stay on until they have reached the five-year threshold.

Anyone arriving after the cut-off date but before the date of Brexit will have a 'grace period' - expected to be two years - within which they can pave the way to seek settled status later.

The cut-off date is yet to be set, but will come between the day when Britain formally notified Brussels of its intention to quit on April 29 2017 and the day when it finally leaves, expected to be March 29 2019.

Despite criticism from Mr Tusk and Mr Juncker, Mrs May told a press conference at the end of the summit this afternoon: 'I remain of the view that this is a fair and serious offer.

'What we are saying is that the citizens who came to the UK ... will be able to stay and we will guarantee their rights.'

Mrs May admitted: 'There are some differences between that and the proposals the European Commission put out.

OSBORNE TAKES AIM AT MAY OVER RIGHTS FOR EU NATIONALS Theresa May today rejected a claim from former Chancellor George Osborne that she blocked a move to guarantee rights for EU citizens immediately after the referendum. An editorial in the Evening Standard - which Mr Osborne now edits - said: 'Last June, in the days immediately after the referendum, David Cameron wanted to reassure EU citizens they would be allowed to stay. 'All his Cabinet agreed with that unilateral offer, except his Home Secretary, Mrs May, who insisted on blocking it.' But Mrs May told a press conference in Brussels this afternoon: 'That is certainly not my recollection.' Advertisement

'That will go into the negotiations.'

Mrs May said she was pleased that other leaders such as Poland's Beate Szydlo had 'reacted positively' to the proposals.

Over dinner with EU counterparts last night, Mrs May sent a tough message on the question of whether the bloc would retain legal control after Brexit.

'The commitment that we make to EU citizens will be enshrined in UK law and will be enforced through our highly respected courts,' she said.

A senior British official added: 'We have been clear on the ECJ that we are taking back control of our own laws.'

German Chancellor Mrs Merkel said the proposal was a 'good start' to discussions.

But she cautioned that the two years of Brexit negotiations that started this week involve 'many, many other issues'.

She specifically cited the bill Britain will have to pay to leave and the border situation in Ireland as examples.

'It means we have lots left to do,' Mrs Merkel said.

Mr Juncker gave the plan a far less effusive welcome, saying was a 'first step, but not sufficient'.

At a press conference wrapping up the summit this afternoon, he suggested the ECJ's role was not up for negotiation.

'I cannot see the ECJ being excluded from the settlement in future,' Mr Juncker said.

Mrs May told a press conference at the end of the summit this afternoon: 'I remain of the view that this is a fair and serious offer.'

Mrs May and Mr Tusk were all smiles as they shook hands at the start of the second day of the summit, but they are on a collision course over rights for EU and UK nationals

Jeremy Corbyn (pictured addressing supporters at the Unison conference in Brighton today) said the proposal on EU nationals 'fell far short' of what was needed - although it is unclear what Labour would be putting on the table

Mr Tusk and German Chancellor Angela Merkel are taking a hard line on the talks after Mrs May's position was weakened by the election result

Mr Tusk told the same press conference: 'The UK's offer is below our expectations and risks worsening the situation for our citizens.'

Meanwhile, former Chancellor George Osborne has claimed Mrs May blocked a move to guarantee rights for EU citizens immediately after the referendum.

HOW WILL BREXIT TALKS HAPPEN? Theresa May's offer on reciprocal rights was received in near-silence by EU counterparts - because they are insisting on the talks being conducted through the European commission. Under the terms agreed between the EU and UK, the official negotiations will take place in four-week 'rounds'. Brexit Secretary David Davis and the commission's Michel Barnier are expected to kick off each round before handing over to officials to hammer out technical details. The first phase of the talks will cover the divorce settlement - with the main topics reciprocal rights for UK and EU citizens, the potential bill for Britain, and the Northern Ireland border. The first session began on Monday, with the next due to start on July 17. Both sides have committed to 'transparency', and are expected to released updates about each round accompanied by press conferences. English and French are the 'working languages' for discussions and documents. The exact timetable of the talks will depend how they progress. But the hope is to have agreement on the principles of the divorce - potentially including a sizeable bill for the UK - by the Autumn. Brussels insists that only then can trade negotiations begin. Unless those can be tied up by October next year, there is a danger the ratification process would not be complete before we formally leave the bloc in March 2019. Extending that deadline would require unanimous consent from the 27 continuing member states. Advertisement

An editorial in the Evening Standard - which Mr Osborne now edits - said: 'Last June, in the days immediately after the referendum, David Cameron wanted to reassure EU citizens they would be allowed to stay.

'All his Cabinet agreed with that unilateral offer, except his Home Secretary, Mrs May, who insisted on blocking it.'

Jeremy Corbyn said the proposal on EU nationals 'fell far short' of what was needed - although it is unclear what Labour would be putting on the table.

'What she has floated falls far short of the full guarantee Labour would make. That isn't just the right thing to do, it's also the best way to guarantee the rights of British nationals living in the EU,' he told the Unison conference in Brighton.

The issue of legal jurisdiction will be the key point of contention to be thrashed out in talks between Brexit Secretary David Davis and the EU's chief negotiator Michel Barnier.

The proposals are likely to meet resistance in Brussels, which has already published its own proposals which would guarantee the rights enjoyed under EU law to any European resident in the UK as soon as Brexit happens.

Current EU proposals stipulate that the European Commission should have 'full powers' to monitor and the ECJ 'full jurisdiction' for as long as citizens' rights remain protected under the withdrawal agreement.

Mrs May also promised that the system will be streamlined, doing away with the 85-page permanent residency application form which has been the subject of loud complaints from EU expats.

It is thought that the UK is reserving the option of setting an early cut-off for residency rights in case there is a late surge of migrants arriving as Brexit approaches.

But the introduction of a 'grace period' raises the possibility that large numbers arriving during withdrawal negotiations may be allowed to remain, at least for a few years.

Mrs May left the meeting shortly after delivering her statement, in order to allow the EU27 to receive a briefing from Mr Barnier on progress in the first round of negotiations which took place on Monday.

MrTusk helped commission president Mr Juncker put on his jacket after the pair held a joint press conference this afternoon

£460bn Brexit boost for FTSE Nearly £460billion has been added to the value of Britain’s leading companies since the stock market lows following the Brexit vote a year ago. The FTSE 100 index of blue chip giants has jumped 24 per cent, while the FTSE 250 benchmark of more domestically focused firms has gained 31.5 per cent. The rally has added £459billion to the value of UK stocks – boosting the pension pots of millions of workers and investments such as ISAs. Following an initial sell-off in the two days after the referendum, the surge has made a mockery of warnings that the stock market would be hammered by Brexit. The rally has partly been driven by the fall in sterling, making foreign earnings worth more when they are converted into pounds. Sterling is down 14.5 per cent against the dollar and 13 per cent against the euro since the Brexit vote, which has also boosted exports. Laith Khalaf, of savings and investment firm Hargreaves Lansdown, said: ‘Overall the UK stock market has performed very strongly since the referendum.’ Comment – Page 18 Advertisement

The outline deal leaves questions unanswered over whether individuals with settled status will be permitted to bring in children or spouses and whether the new status will be subject to conditions other than length of residency.

Further details are expected to be revealed in a paper to be published by the UK Government on Monday.

Speaking over dinner at the Brussels summit, Mrs May told leaders of the other 27 EU nations: 'The UK's position represents a fair and serious offer and one aimed at giving as much certainty as possible to citizens who have settled in the UK, building careers and lives and contributing so much to our society.'

She said the UK did not want anyone currently in Britain to be forced to leave.

Mrs May, pictured talking to EU counterparts today, said her proposals had been welcomed by many fellow leaders

There was no discussion of Mrs May's proposal at the Brussels dinner, as leaders of the EU27 stuck to their position that all negotiations must be conducted through Mr Barnier, and not through individual national leaders.

But, despite claims of EU 'unity', one leader broke ranks and offered early backing to Mrs May, saying the UK has every right to enforce citizens' rights in British courts.

Lithuanian president Dalia Grybauskaite said: 'We would like to have a different situation but it's the right of Britain to decide how much they will be involved and use the European judiciary.'

She also showed a chink in the bloc's negotiating stance by saying the 'cut-off date is not so important'.