Coveney warns United Kingdom border proposals just "a starting point" in Brexit talks

Theresa May

Theresa May

"We are leaving the single market, life will be different", said Theresa May.

McDonnell has said today that the United Kingdom should not prioritise one concern over the other.

But she had been under pressure to back an EU-UK customs union amid a now-stalled rebellion from Tory Brexiteers and a shift in Labour's position announced earlier in the week by Jeremy Corbyn.

During her speech, Theresa May also strongly rejected the possibility of a second referendum on European Union membership. "We will not be buffeted by the demands to talk tough or threaten a walk-out", she said.

The European Council president Donald Tusk told the United Kingdom prime minister on Thursday that friction in trade was "inevitable" after Brexit.

In a speech Friday, May said that would break up the U.K.'s common market and is unacceptable.

Mr Coveney said if agreement can not be reached during tri-partite talks between the UK, Ireland and the European Commission, the backstop plan of full British alignment with customs union and single market rules that Mrs May "committed clearly" to in December would have to be put in place.

But senior Tory Sarah Wollaston, one of the MPs who has signed Ms Soubry's amendment, said the rebels would now give the Prime Minister "breathing space" to try to negotiate her own customs plan.

In the interview, which was recorded after her speech on Friday, Mrs May said Britain would align with European Union rules in areas like vehicle manufacturing to maintain access to markets but diverge in areas such as fisheries and agriculture.

Suspects released over murder of Slovakian journalist Jan Kuciak
The ceremony began with the reading of a poem written by Jan for his fiancee that he had planned to read at their wedding. He was writing an article on suspected links between the Italian mafia and the prime minister when he was murdered.

May is making a speech outlining her vision of future economic ties with the EU.

She told ITV's Peston On Sunday: "I think what we need to see is some kind of partnership that allows frictionless trade at our border and also deals with the situation in Northern Ireland and I want to give her the space to do that".

A government source said the speech was aimed at showing more pragmatism in the Brexit talks, which are now even struggling over the relatively easier part of agreeing a transition period after Britain leaves in March next year.

In her Friday speech, May conceded that the United Kingdom won't get everything it wants in the negotiations with the EU but she maintained her aim to reach an unprecedented trade deal that her Cabinet has rallied behind even though European officials think it's unrealistic.

Also speaking to the BBC on Sunday, the Prime Minister said her overall Brexit plan for Britain to align with European Union rules to allow for "frictionless" trade while retaining the leeway to diverge from them was "ambitious" and "credible".

"She (May) has given a number of important reassurances today, which I welcome", Varadkar said."However I remain concerned that some of the constraints of leaving the Customs Union and the Single Market are still not fully recognised".

But Scottish First Minister Nicola Sturgeon, who wants the whole of the United Kingdom to remain in the customs union, said the PM was relying on "technological solutions that perhaps do not even exist".

The Prime Minister also pointed out that trading deals for banks are to likely be required to undergo change since they might turn Britain into a "rule-taker" outside the EU.

She told Sunday Politics Scotland: "We know that Nicola Sturgeon always wants one but she has got this high wire act with her own party about when she thinks she can call one".

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