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Theresa May was today warned that paying a bigger EU divorce bill is not enough to unlock vital trade talks.

In an exclusive interview, Ireland’s foreign minister said his country still has a veto - and is prepared to use it.

Simon Coveney told the Standard that trade talks will not be allowed to begin until the UK also agrees to maintain the open border between the Republic and Northern Ireland.

He said: “Anybody who thinks that just because the financial settlement issue gets resolved […] that somehow Ireland will have a hand put on the shoulder and be told, ‘Look, it’s time to move on.’ Well, we’re not going to move on.”

He said there was “a lot of solidarity” around the EU table for Ireland’s position.

Mr Coveney’s intervention makes clear that Mrs May’s hopes of getting trade talks started at a summit in Brussels next month could still be dashed.

Last night she persuaded key Brexiteers in the Cabinet, including Boris Johnson and Michael Gove, to accept a higher cash offer to Brussels on condition that it be tied to trade negotiations getting under way. However, the move triggered anger among Tory MPs, with a warning that the sum would seem “completely bananas” to voters.

No official figure has been put on the bill but the running total is reportedly about £38 billion in payments to the EU after Brexit. Payments are one of three priorities set by the EU to unlock trade talks, along with EU citizens’ rights and the Irish border. The latter is emerging as the most intractable, and officials are downbeat about finding a solution before the December 14-15 summit.

“It’s hard to know,” Mr Coveney said of the December deadline. “There are a lot of things that Britain aspires to, in the context of Brexit, which I don’t believe to be compatible with the realities of the situation we’re facing.”

British officials say the border can only be solved as part of an overall trade deal. Mr Coveney said leaving it until later in the talks would be “a leap into the dark”. Ireland wants assurances now that there will not be a visible border after Brexit.

Mr Coveney said: “This is a much bigger issue than trade. This is about division on the island of Ireland.”

British alarm bells started ringing two weeks ago when a leaked EU document called on the UK to avoid “regulatory divergence” in Northern Ireland post-Brexit. This is code for Dublin’s proposal to keep Northern Ireland in or linked to the EU customs union and single market, which would create a divide between the province and the UK mainland.

“I will not be an Irish foreign minister that presides over a negotiation which is not prioritising peace on the island of Ireland,” Mr Coveney said.

The 10 Democratic Unionist MPs propping up the May government at Westminster are bitterly opposed to any solution that would push Northern Ireland closer to the Republic. “They’re not willing to do that, but we’re not willing to move on without more assurance on the border,” Mr Coveney said.

The Irish government argues that keeping the border free of customs officials, cameras and other barriers is vital to safeguard the peace process.

Mr Coveney said: “We’ve no interest in making life even more difficult for a British government.” He added: “Anybody in London, or anywhere else in Britain, who underestimates the politics of this or the strength of feeling in Ireland, I think, is making a mistake.”

Irish prime minister Leo Varadkar hardened his line in public last week, calling for “further concessions” from Britain.

EU lead negotiator Michel Barnier and European Council president Donald Tusk, who will chair the December summit, have echoed the Irish stance. Yesterday Mr Barnier said that “those who wanted Brexit must offer solutions” for Northern Ireland.

Mrs May faced revolt today as Labour backed Tory MPs demanding greater protection for freedoms guaranteed by the EU Charter on Fundamental Rights.

Tory Dominic Grieve said the EU Withdrawal Bill will weaken rights to equality and privacy. Shadow Brexit secretary Keir Starmer said: “Labour will not let the Government use Brexit as an excuse to roll back fundamental rights.”