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Appearing on BBC Newsnight, BBC political editor Nick Watt told Kirsty Wark that EU leaders have shown more flexibility in recent weeks, but the UK is still expected to “suffer” in the upcoming negotiations. Mr Watt said: “The mood music is much better from Michel Barnier and EU leaders. “The bottom line is that they want a deal but they don’t want a deal at any prize. “And Angela Merkel has been heard to say in private that the UK must suffer a little bit in these Brexit negotiations.

“They can’t have a sweetheart deal.” However, according to Mr Watt, EU leaders have been encouraged to some extent by the Chequers proposal. Mrs May claimed the “alternative” to Chequers was a ‘no deal’ Brexit, during a BBC Panorama interview yesterday. Mr Watts said: “They think the Prime Minister has taken some serious political risk.”

Angela Merkel was quoted saying that “the UK must suffer a little bit” in the Brexit negotiations

Mr Watts said EU leaders have been encouraged in one level by Chequers

However he added: “They do have fundamental problems with fundamental elements of Chequers. “For example, the common rule book on goods, they say that this is trying to split up the four freedoms and if you cannot get agreement on those fundamentals then the EU is saying you need to have a backstop in Northern Ireland.” While Mrs May’s decision to adopt a binary strategy between the Chequers proposal and ‘no deal’ Brexit may be welcomed by EU leaders, it has been rejected by many MPs. It comes after a week of mounting pressure within her own party to “chuck Chequers”, as Brexiteers believe the agreement does not deliver on what the British people voted for.

Theresa May's binary strategy comes after a week of mounting pressure within her own party