Michel Barnier launched a brutal attack on David Davis after the latest round of Brexit talks today, slamming the lack of a 'clear British position'.

The EU's chief negotiator said there was a 'fundamental divergence' on the issue of citizen's rights, and demanded that the UK 'clarify' its views on paying a mooted £85billion divorce bill.

The tough message came amid fears negotiations are already deadlocked - raising the prospect that the process could collapse.

Despite working all week officials have struggled to make progress on key issues of reciprocal rights for citizens and Britain paying a huge divorce settlement.

There had even been doubts about whether the two politicians would hold a joint press conference, in an apparent sign of the difficulties.

Mr Barnier did not pull his punches as he stood alongside Mr Davis today, saying: 'This week's experience has quite simply shown that we make better progress when our positions are clear.'

While the talks were underway in Brussels, Mrs May entertained business leaders at No 10 to update them on the progress of the talks.

The British side is understood to believe that progress has been made during four days of talks, despite bleating from EU chief negotiator Michel Barnier (pictured right with David Davis in Brussels today) about a lack of 'clarity' on the UK's position

Brexit Secretary David Davis (left) has met Michel Barnier after a week in which officials have struggled to make progress

Mr Davis and Mr Barnier struck markedly different tones about the way the negotiations were progressing today

The British delegation faced jibes about being unprepared on Monday when they were pictured at talks without any notes, while the EU delegation had huge piles of papers

Mr Davis insisted the talks had been 'constructive' and showed the 'differences' where the sides needed to focus.

The financial settlement is emerging as the biggest battleground in 'phase one' of the talks - which also covers citizens' rights and the Irish border.

Mr Barnier insisted there was no chance of moving on to the second stage of the negotiations - over Britain's future trading relationship with Brussels - until enough progress has been made over the principles.

'A clarification of the UK position is indispensable for us to negotiate and for us to make sufficient progress on this financial dossier, which is inseparable from the other withdrawal dossiers,' he told the press conference.

BARNIER'S SWIPES AT DAVID DAVIS On the divorce bill: 'We know that agreement will not be achieved through incremental steps. As soon as the UK is ready to clarify the nature of its commitments, we will be prepared to discuss this with the British negotiators.' On citizen's rights: 'There does remain one fundamental divergence on the way in which such rights would be guaranteed and on several other points, for example, the rights of future family members or the exports of certain social benefits.' On Northern Ireland border: 'We require this clarification on the financial settlement, on citizens' rights, on Ireland - with the two key points of the common travel area and the Good Friday Agreement - and the other separation issues where this week's experience has quite simply shown we make better progress where our respective positions are clear.' Advertisement

'What we want - and we are working on this - is an orderly withdrawal for the United Kingdom, that's decided. An orderly withdrawal means accounts must be settled.

'We know that agreement will not be achieved through incremental steps. As soon as the UK is ready to clarify the nature of its commitments, we will be prepared to discuss this with the British negotiators.'

Mr Barnier was similarly pessimistic about the prospects on reciprocal rights for EU nationals already living in the UK.

'There does remain one fundamental divergence on the way in which such rights would be guaranteed and on several other points, for example, the rights of future family members or the exports of certain social benefits,' he said.

Mr Barnier said the first round of talks had been about organisation, this week had been about presentation - the 'third round must be about clarification'.

He said: 'We require this clarification on the financial settlement, on citizens' rights, on Ireland - with the two key points of the common travel area and the Good Friday Agreement - and the other separation issues where this week's experience has quite simply shown we make better progress where our respective positions are clear.'

Paul Polman (left), Chief Executive Officer of Unilever, and Paul Manduca (right), Chairman of Prudential, were among the guests in No 10 today

Decoded Co-CEO, Kathryn Parsons (left) and Risk Capital CEO, Luke Johnson (right) were also among the guests for a meeting with Mrs May in Downing Street today

National Grid CEO John Pettigrew (left) and Tesco CEO Dave Lewis (right) were also updated by the Prime Minister on the Brexit latest

Mr Barnier also made one of his hardest comments yet about the role of the European Court of Justice (ECJ).

The EU insists its court must enforce the rights of nationals in the UK, while Britain says that is unacceptable and European judges will not be allowed to meddle after Brexit.

'This is not a political point we are making, it's a legal one,' Mr Barnier said.

'Simply, if there is to be continuity of EU law, that has to be framed by case law of the court. Only the court can interpret EU law.

'It's not a choice, it's an obligation.'

Jaguar Land Rover CEO Ralph Speth was also seen walking up Downing Street for today's meeting

Director General of the Institute of Directors (IoD) Stephen Martin (left) and BAE Systems Chairman Roger Carr (right) were also today's meeting

CBI Director General Carolyn Fairbairn was also invited to hear the latest from Mrs May in Downing Street

Mr Davis struck a more optimistic tone, saying: 'Overall I'm encouraged by the progress we have made on understanding each other's positions.'

He said the talks had demonstrated the UK had made a 'fair and serious offer' on citizens' rights and there were 'many concrete areas where we agree, as well as areas where there will be further discussion' which will be a priority in the next round.

On the financial settlement, Mr Davis said: 'We both recognise the importance of sorting out the obligations we have to one another, both legally and in a spirit of mutual cooperation.'

In a sign of the difficulties in reaching agreement he added: 'We have had robust but constructive talks this week. Clearly there's a lot left to talk about and further work before we can resolve this.

'Ultimately getting to a solution will require flexibility from both sides.'

The Union Flag was carefully into position ahead of the joint press conference today

Mr Davis struck a more optimistic tone, saying: 'Overall I'm encouraged by the progress we have made on understanding each other's positions.'

Mr Barnier said the first round of talks had been about organisation, this week had been about presentation - the 'third round must be about clarification'

The attack by Mr Barnier seems to be part of a concerted effort by the EU to ratchet up the pressure on the UK, after the government was weakened by the election result.

POST-BREXIT TRADE DEAL 'EASIEST IN HUMAN HISTORY' A post Brexit trade deal between Britain and the EU will be 'one of the easiest in human history' to strike, Liam Fox said today. The International Trade Secretary said the benefits were so obvious that it would only not happen if 'politics get in the way of economics'. Dir Fox said that while the Government wanted a deal, Brussels had to know that the UK would be prepared to walk away without an agreement. He told BBC Radio 4's Today: 'We don't want to have 'no deal', it is much better that we have a deal than no deal. We can of course survive with no deal and we have to go into a negotiation with those on the other side knowing that's what we think. 'But of course we want to come to a full and comprehensive deal with the European Union.' Dr Fox stressed that leaving the EU meant quitting the single market and customs union. 'If we are to have an implementation phase between leaving the European Union and our final settlement, I don't have a problem with that,' he said. 'But I do think we have to leave the EU first of all to keep faith with the voters who instructed us to do that.' Dr Fox said Prime Minister Theresa May was 'likely' to remain in Number 10 throughout the current parliament and warned that speculation about leadership would distract from the 'historic' task of Brexit. Mrs May has repeatedly stated that her approach to Brexit was 'no deal is better than a bad deal' and Dr Fox said it was important that the EU recognised that resolve. Advertisement

The French foreign minister insisted yesterday that Britain paying a huge Brexit bill is 'non negotiable'.

Bruno Le Maire risked inflaming tensions in negotiations by quoting Margaret Thatcher's famous phrase: 'We want our money back.'

Asked about the standoff at the French parliament yesterday, Mr Le Maire said: 'I will say what Margaret Thatcher used to say: 'We want our money back.'

'We can always debate on the amount but on the fact that the United Kingdom must pay what it owes to the budget of the European Union, it is a non-negotiable prerequisite at the start of the (Brexit) discussions.'

Mr Le Maire confirmed that the amounts involved could be up to to 100billion euros.

'The payment by the United Kingdom of its remainder ... is a non-negotiable prerequisite for any discussion of the future of our relations,' he added.

Mr Barnier has insisted that the UK must provide an initial framework in the autumn as to how much money it is willing to pay before talks about a trade deal can begin.

He has repeatedly threatened that the complex negotiations will not proceed unless he determines there is 'sufficient progress' on the size of the UK bill.

But Downing Street is prepared to infuriate EU leaders by offering only a vague agreement in October and refusing to produce a concrete figure.

British negotiators have insisted the size of the payment can be determined only when it becomes clear whether the EU is willing to offer a wide-ranging trade deal.

Insiders have dismissed the EU's £85 billion demand as 'preposterous' while Foreign Secretary Boris Johnson recently said the bloc could 'go whistle' for such a sum.

Mr Davis has described even a settlement of half that as a 'lot of money', while Tory Brexiteers insist nothing should be paid.

The Brussels showdown comes as Theresa May hosts the first meeting of a new business council intended to increase the involvement of leading firms in the Government's Brexit strategy.

Bruno Le Maire, pictured right with EU commission president Jean-Claude Juncker in Brussels last month, risked inflaming tensions in negotiations by quoting Margaret Thatcher's famous phrase: 'We want our money back.'

Boris Johnson, pictured on a visit to Tokyo today, has said that Brussels can 'go whistle' for a big payout from Britain

Following the summit, a No 10 spokesman said: 'The Prime Minister emphasised her desire to listen to the views of business, to channel their experience and to share with them the government's vision for a successful Brexit and a country in which growth and opportunity is shared by everyone across the whole of the UK.

'On Brexit, the Prime Minister reiterated that the Government's overarching goal is for a smooth, orderly exit culminating in a comprehensive free trade deal with the EU, with a period of implementation in order to avoid any cliff-edges.

'The Prime Minister welcomed the valuable contributions which have come from discussions with business at various levels of government over the past year, including on the development of a modern industrial strategy, and emphasised the need for this engagement to intensify over the period ahead.

'Beyond Brexit, the Prime Minister committed to using this forum to focus on wider issues of importance to the UK economy.'

Chancellor Philip Hammond and Business Secretary Greg Clark will also be at the Downing Street meeting with a number of company bosses, including Tesco's Dave Lewis, Sir Roger Carr from BAE Systems and National Grid chief executive officer John Pettigrew.

Meanwhile, International Trade Secretary Liam Fox is using a visit to Switzerland to urge a rejection of post-Brexit protectionism, and Foreign Secretary Boris Johnson is in Japan for trade talks.