Here is the statement Theresa May has just delivered 24 hours after the conclusion of the Salzburg informal European Council

Yesterday, I was in Salzburg for talks with European leaders. I have always said that these negotiations would be tough – and they were always bound to be toughest in the final straight.

While both sides want a deal, we have to face up to the fact that – despite the progress we have made – there are two big issues where we remain a long way apart.

The first is our economic relationship after we have left. Here, the EU is still only offering us two options. The first option would involve the UK staying in the European Economic Area and a customs union with the EU. In plain English, this would mean we'd still have to abide by all the EU rules, uncontrolled immigration from the EU would continue and we couldn't do the trade deals we want with other countries. That would make a mockery of the referendum we had two years ago.

The second option would be a basic free trade agreement for Great Britain that would introduce checks at the Great Britain/EU border. But even worse, Northern Ireland would effectively remain in the Customs Union and parts of the Single Market, permanently separated economically from the rest of the UK by a border down the Irish Sea. Parliament has already – unanimously – rejected this idea.

Creating any form of customs border between Northern Ireland and the rest of the UK would not respect that Northern Ireland is an integral part of the United Kingdom, in line with the principle of consent, as set out clearly in the Belfast/Good Friday Agreement. It is something I will never agree to – indeed, in my judgement it is something no British Prime Minister would ever agree to. If the EU believe I will, they are making a fundamental mistake.

Anything which fails to respect the referendum or which effectively divides our country in two would be a bad deal and I have always said no deal is better than a bad deal.

But I have also been clear that the best outcome is for the UK to leave with a deal. That is why, following months of intensive work and detailed discussions, we proposed a third option for our future economic relationship, based on the frictionless trade in goods. That is the best way ...read more

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