Are the Brexit negotiations in trouble?

Theresa May’s political weakness at home appears to have emboldened the European Union to make further demands in the Brexit talks. Some cabinet members thought that talks were close to being resolved last week, but the timetable has slipped as it has become clear that UK expectations had run ahead of themselves.

What does the European Union want from the UK?

Brussels negotiators are pressing for the UK to agree a “level playing field” as part of the customs backstop when it comes to future environmental and social regulations after Brexit. The UK had previously indicated that it was happy to promise not to lower environmental and social standards after Brexit, but the EU has gone further and wants “dynamic” alignment in which the UK commits to match future EU rules. It is the kind of demand that will infuriate Tory hard Brexiters, who want the UK to have maximum flexibility after Brexit.

Are there other demands?

The EU is pressing for a role for the European court of justice in determining how the UK applies the rules on state aid regarding British companies in the backstop – and to deal with disputes over how and when the backstop could come to an end.

A foreign court arbitrating on state aid is not only likely to be unattractive on the Tory right; Jeremy Corbyn has also expressed reservations about whether EU state aid rules would prevent a Labour government from renationalising and reorganising British companies in the way he envisages.

Is this all part of the Irish backstop negotiations?

Yes – the argument is that if May wants to replace a customs backstop that only covers Northern Ireland with a UK-wide customs arrangement then Brussels wants further commitments from the UK. Topics that were going to be negotiated in the future, as part of long-term free trade talks, have been brought forward because the customs arrangement the UK wants is more wide ranging.

Why has that happened at all?

Because the Democratic Unionist party, which props up May’s government, will not accept the UK agreeing customs border down the Irish sea. May has felt she has had little choice but to go along with the DUP position.