BORIS Johnson and Emmanuel Macron locked horns as Brexit talks ground to a halt once again following a week of "intense negotiations".
Sources claim the French president had pressured EU negotiator Michel Barnier to take a hardline approach to talks - while an ally close to Macron said he would veto any trade deal that went against France's interests.
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It comes as Brexit trade deal talks ground to a halt over a 'ridiculous' EU demand for ten years' access to UK fishing waters, reports.
But UK sources said the French leader did not respect Britain's independence and was trying to shield his nation's firms from competition
It follows Michel Barnier and Lord Frost agreeing on Friday that there were "significant divergences on the level playing field, governance and fisheries" - meaning the Brexit impasse will rumble on.
If an agreement is not reached the end of December, Britain will revert to World Trade Organisation rules - meaning tariffs and increased checks on EU goods.
A senior Government source said: "Their new offer was frankly laughable.
"They know we can't possibly accept it. It's ridiculous. If they think we will just cave in, they have made a massive miscalculation."
The bloc's chief negotiator, Michel Barnier, tweeted on Friday: "We agreed to pause the talks in order to brief our Principals on the state of play of the negotiations.
"President [Ursula] von der Leyen and Prime Minister Johnson will discuss the state of play tomorrow afternoon."
Boris Johnson will call EU Commission President Ursula von der Leyen on Saturday to see if there is any scope to salvage a deal.
The PM was spending Friday night mulling his next move, but with just 26 days left until the end of the Brexit transition period, both sides are braced for no deal.
A UK source had predicted tonight it was "very unlikely we'll get a breakthrough" and they were not expecting any "white smoke yet".
Both sides are understood to still be far apart on some of the key issues - including alignment with the bloc after the transition period ends on December 31.
The source added: "We're in a tricky place."
But they stressed that while there was not yet a breakthrough, the talks had definitely not broken down without resolution yet either.
Michel Barnier is expected to stay in London for the time being.
UK government sources said any breakthrough now depended on whether the 27 EU member states are willing to shift their hardline mandate that has made it impossible for Barnier to make fresh concessions.
France has been pushing the hardline demands for the UK to stay aligned to future EU standards - as well as requesting 80 per cent access to Britain's fisheries.
A UK government source said: "We haven't made progress. It's down to the PM's call with Von der Leyen tomorrow and whether they will shift their mandate."
It came after EU splits broke out in public as Germany told France to back down from its threat to block the entire Brexit trade deal.
The extraordinary spat between the two European powerhouses threatened to derail Brexit talks, which were on a knife-edge last night with just 48 hours before a crunch decision has to be made on whether to walk away without a deal.
Last night, a senior UK Government source said Brussels needed to “rethink” their strategy after tabling “unrealistic demands” for Britain to stay aligned to future EU rules.
France forced the EU to make the fresh demands at the 11th hour but Germany and Ireland rebuked their aggressive ploy.
French President Emmanual Macron and German Chancellor Angela Merkel clashed over how hard to go on Britain in a sign of how divided the 27 EU member states are.
France's Europe Minister, Clement Beaune, heaped on pressure by saying Mr Macron won't hesitate to veto a deal if the UK doesn't cave in on fishing.
But Ms Merkel's spokesman struck a much softer tone, insisting that the EU will have to give more ground to seal an agreement.
The public rift laid bare a power struggle within the bloc between two camps - hawks pushing for No Deal now and doves that want to give talks more time.
In a combative TV appearance Mr Beaune said: "France has a veto. If there's a deal that isn't a good one, we'd oppose it. We won't accept a bad deal."
"We'll defend our interests. We owe that to the French people, we owe it to our fishermen, and to other economic sectors."
Speaking just hours later, Mrs Merkel's spokesman said the German leader believes "the willingness to compromise is needed on both sides".
He said: "Everybody has their principles, there are red lines, that's clear but there's always room for compromise."
A spokesman for the PM said at lunchtime: "The talks are ongoing.
"There are still some issues to overcome. Time is in very short supply and we are at a very difficult point in the talks.
"What is certain is we will not be able agree a deal that doesn't respect our fundamental principles on sovereignty, fishing and control."
They added that talks are ongoing today, stressing: "Our negotiating team is working extremely hard in order to bridge the gaps that remain."
The French minister openly vowed to "oppose" a deal which "doesn't correspond with our interests", in a move which could torpedo the whole agreement.
Speaking to French TV station Europe One today, he said: "France, like all its partners, has a veto. If there's a deal that isn't a good one, we'd oppose it. We won't accept a bad deal."
He said: "If there were a deal that isn't good which in our evaluation doesn't correspond to those interests, we will oppose it.
"Yes each country has a veto, so it's possible.
"France like all its partners has the means of a veto. We owe that to the French people, we owe it to our fishermen, and to other economic sectors."
'STAY TUNED'
However, both sides are still saying an agreement may be possible by the end of the weekend.
It's understood the talks went on past 11pm in a sign of desperation to get an agreement over the line.
Mr Barnier has not gone back to Brussels today - in a glimmer of hope that a deal can be sealed in the next 48 hours.
And there will be no update for the EU ambassadors today as "ongoing intensive negotiations" carry on.
An EU spokesperson said: "Keep your fingers crossed and stay tuned!"
European Commission spokesman Eric Mamer said there would be a "full day of negotiations" and declined to give an update.
He said today: "The European Commission is working on the basis of its mandate, the negotiating team is in close contact with the president (Ursula von der Leyen), the member states, the parliament and there is regular reporting."
The final EU Council of the year takes place next week - and if that's missed a special summit may have to be called.
It needs to be signed off by all the EU member states, too.
This morning one EU source appeared much more optimistic, saying a deal was "imminent".
An official told Reuters that a deal was expected before the end of the weekend, barring last-minute breakdown in talks.
And they said the EU stood firm on its state aid demands - which could be a sore point for Tory MPs when a deal is finally revealed.
Another EU official told The Sun that a deal was not expected today.
They said: "Barnier is still there, things are not moving forward, but that's hardly new."
The hardline rhetoric comes after Emmanuel Macron threw a spanner in the works by tabling late new demands on state aid.
And with talks going down to the wire, EU officials said an emergency Christmas summit of leaders might be needed to get a deal over the line.
High hopes of a deal fuelled by late night takeaway pizza looked dashed yesterday as the UK said the prospect of a breakthrough was “receding”.
Talks hit a snag on Thursday afternoon when EU negotiators introduced new demands for Britain to stick to EU standards after Brexit.
The terms would severely limit the UK Government’s ability to support struggling industries and keep us tied to EU rules for years.
And Brussels was still refusing to accept Britain’s offer for EU fishing boats to keep 40 per cent of their catch in UK seas.
Betting odds on Smarkets suggest that it's still before the end of the year.
Head of Political Markets, Sarbjit Bakhshi, said: "Smarkets customers have put the likelihood of a trade deal this year at 85 per cent in light of last-minute talks between the UK and the EU.
"With the issues of a level playing field, fishing quotas, Northern Ireland, and whether the bill will get Labour support, our market is being traded actively on both sides."
However, this morning Business Secretary Alok Sharma said Brexit talks are in a "difficult" phase with "a number of tricky issues" still outstanding.
He told BBC Breakfast: "We are committed to reaching an agreement with the EU.
"But time is short and we are in a difficult phase. There's no denying that. There are a number of tricky issues that still have to be resolved.
Advisors on £550 a day
By Matt Dathan
WORRIED ministers are hiring emergency response managers on £550 a day over Christmas and the New Year to handle Brexit turbulence.
Recruits working from 6am to 11pm will deal with energy or food supply hold-ups or blockages at the border.
They must deliver reports and briefings “at pace”.
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"The fundamental point - I want to make this really very, very clear to your viewers... we want the EU to recognise that the UK is a sovereign and independent nation.
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He added: "It is on the basis of that that a deal will be done.
"It is tricky, but we are working hard. David Frost and his team are working incredibly hard on this, in good faith, so let's see where we get to."
The Sun says
WHAT on earth is President Macron playing at?
Threatening to veto a Brexit trade deal between Britain and the EU unless we grant his fishermen more access to our waters is not only deliberately destructive — it’s also incredibly stupid.
EU leaders might act like the bloc is one big, happy family.
But if the French president torpedoes a trade deal with Britain — the world’s sixth largest economy — we have a feeling he won’t be especially popular with his neighbours.
Of course, it’s possible that Monsieur Macron is banking on a chastened UK coming back to the EU next year once we’ve had a taste of No Deal.
If so, he’s made an epic miscalculation: Boris and his ministers have fought tooth and nail for our sovereignty — both in Government and outside of it — and they have no plans to give it up.
Angela Merkel is right: if you want a deal, both sides need to move towards each other. Each side has its red lines but there’s always room for compromise.
Let’s hope she knocks some sense into her French counterpart.