Portuguese MEP told Britain to accept freedom of movement or forget any deal

Battle line drawn, as EU Parliament vice chairman Paulo Rangel told British Prime Minister that the only pre-condition to any deal is for the UK to allow freedom of movement.

He called on other EU leaders not to compromise their “fundamental principles” as negotiations begins with the UK, saying Brexit is a “sad news”

There is this fear among EU leaders that if the UK is offered a trade agreement it will give them a “free ride” on the single market while using its new-found freedom to undercut the EU in global markets.

Though Mr Tusk has offered the carrot approach, the European Parliament will still have the power to reject the terms and send leaders back to the negotiating table.

In a uncompromising caution, Portuguese MEP Mr Rangel said: “This is a sad day and sad news for the European Union.

“We have to move on, to build relationships with the United Kingdom. We cannot give up our fundamental principles – the four freedoms are non-negotiable.

“We have to keep our message very, very clear. If the United Kingdom wants to build a relationship that is sound and good with the European Union, it must respect our fundamental principles.”

The issue of Gibraltar, has given Mrs May a second Brexit blow after it emerged Spain has secured a powerful veto over Gibraltar’s participation in any future deal between the EU and the UK.

In a massive political victory for Madrid, the other 27 member nations have agreed it will be able to block any trade treaty secured with Britain from applying to the Rock, potentially starving it of access to the single market.

The clause, buried deep in the EU’s negotiating guidelines issued today, will provoke outrage in Whitehall and worry amongst the tiny enclave’s population, which is heavily reliant on trade with Europe.

Spain has repeatedly tried to claim ownership of Gibraltar despite fierce opposition from its 30,000 inhabitants, who have expressed their desire to remain British.

Lib Dem MP Tom Brake said: “Confirmation that Gibraltar’s future must be agreed by the UK and Spain shows just how damaging the Government’s ‘hard’ Brexit will be on this strategically important British territory.

“Theresa May must urgently product a plan that protects the citizens of Gibraltar, including their businesses and communities.  It is our obligation to support our overseas territories, and any attempt to brush off the importance of this issue is a dereliction of duty by the Government.

“Only the Lib Dems are fighting against ‘hard’ Brexit, and to keep the UK’s place in the single market.”