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European Union officials decided late Wednesday not to hold an emergency Brexit summit in November due to a lack of progress in talks with the UK.
A final Brexit deal that would benefit both the UK and the EU is more in doubt than ever with negotiations now stalled.
The EU’s chief negotiator, Michel Barnier, said he will need a lot more time to look at British Prime Minister Theresa May’s offer to keep the whole of the UK in a sort of alignment with the EU together with Northern Ireland after Brexit.
May also requested a one-year extension to the transition period, which was principally agreed last December to conclude at the end of 2020.
But following a short presentation from May, EU leaders said she had brought nothing new to Brussels.
An optimistic May had said on arriving at the European Council that she believed that a deal was still achievable and it was now “time to make it happen”.
Earlier Wednesday, German Chancellor Angela Merkel said the chance to conclude “a good and viable agreement on time is still there, and of course it is in our interest”.
“At the same time, it is part of a responsible and future-oriented governance to be ready for all scenarios, including the possibility that the UK will withdraw from the EU without a deal.”
Echoing Merkel, French President Emmanuel Macron said he had confidence in the Brexit talks, “but we are not yet there”.
Macron said now is the time to decide on Brexit, but more progress is needed in the talks.
Meanwhile, France’s Senate has published contingency measures in case of a no-deal Brexit.
British Prime Minister Theresa May will address European Union counterparts in Brussels on Wednesday but there is little hope on either side of a quick breakthrough after Brexit talks stalled at the weekend.German Chancellor Angela Merkel echoed a hardening tone among the 27 other governments, whose leaders will gather over dinner after a presentation by May to discuss stepping up preparations for Britain dropping out of the EU with no deal in March.All member states, she said before flying to the summit, must prepare for all outcomes: "That includes the possibility that Britain leaves the European Union without a deal."With wrangling over how to keep Northern Ireland's land border with the EU open after Britain leaves the EU's customs and regulatory space, Irish Foreign Minister Simon Coveney said it was unlikely the 27 leaders would set a date for a special summit to seal a deal - as was the hope before talks stalled.Half of Europeans not satisfied with EU’s directionSummit chair Donald Tusk called on May to come to Brussels with "creative" new ideas to unblock the process, but British officials have given little indication she has much new to say as she battles deep opposition among her own allies to the kind of agreement which Brussels says is pretty much its final offer.May told parliament in London she wanted any treaty that includes the Irish border issue linked to a separate declaration the two sides intend to issue on their intentions for a close EU-UK trade pact to be negotiated after Brexit.EU negotiators agree that a close customs and regulatory relationship could avert the kind of border disruption that could revive sectarian tensions in Northern Ireland, but they still want a "backstop" guarantee that if that is not in place, then the EU would keep the province in a special economic zone.May and her Northern Irish allies reject that as posing a risk of breaking up the United Kingdom.Berlin braced for all Brexit scenarios, including no deal: MerkelTRANSITION EXTENSIONEU diplomats told Reuters on Monday that EU negotiator Michel Barnier offered to help defuse the issue by extending a status-quo transition period for Britain by an extra year to the end of 2021 to give time for a trade deal that would avert the need to trigger a backstop for Northern Ireland.European Parliament President Antonio Tajani, whose chamber needs to see a treaty this year to have time to ratify it by March, told reporters that he would support Barnier's proposal to lengthen the transition period to three years from two.Many continental officials involved in the process have long said a longer transition may be needed to conclude a free trade deal anyway. However, May is also under pressure from Brexit supporters to cut ties to the bloc as soon as possible.'Turkey, UK should sign free trade agreement'May is due to address her peers at 7 p.m. (1700 GMT). There is unlikely to be much dialogue around the table, with EU leaders insisting London negotiate exclusively through Barnier.The 27 will move to a dinner without May to hear reports from Barnier and from European Commission President Jean-Claude Juncker. He will brief them on how the EU executive is stepping up planning and guidance for governments on what must be done to cope with Britain leaving on March 29 with no treaty in place.Both sides are coming under pressure from business to reach agreement soon to avoid firms running up needless costs.Longer Brexit transition period would not hurt EuropeA joint pre-summit plea from the European auto and car parts sector warned disruption to cross-Channel supply chains would be "catastrophic" and wipe out much of a quarter-century of recovery in England's car industry.May will rejoin her counterparts for a regular EU summit on Thursday, to be followed in the evening and on Friday by a summit with Asian leaders, including China's Premier Li Keqiang and the prime ministers of Japan, South Korea and Russia. 
May faces EU leaders as Brexit talks stall
Irish border
As the UK will leave the bloc in March 2019, the border between Northern Ireland – a UK territory – and the Republic of Ireland will remain as the only land border between the UK and the EU.
The border at the moment is invisible, and people, goods and services can travel through it freely. But as the UK leaves the EU, the border, technically, will need some sort of checks.
Due to the sensitive nature of the region and because free passage is one of the crucial articles of the 1998 Belfast Agreement, the UK, EU, Northern Ireland and Ireland all reject the idea of returning to a hard border where checkpoints and customs buildings will need to be installed.
The border issue has been one of the thorniest in Brexit talks as a solution that would be acceptable for all sides is still to be reached.
British Prime Minister Theresa May will discuss Brexit with her ministers on Tuesday, under pressure to rethink her plans from both some members of her Conservative Party and the European Union.A day before May heads to Brussels for a summit, a senior EU official again made clear that parts of May's plan could not work and said the time was right to step up plans for Britain leaving the bloc without a deal.With less than six months before Britain leaves the EU, Brexit talks have reached a stalemate over the so-called Irish backstop, a fallback plan to ensure there is no return to a hard border between Northern Ireland and EU-member Ireland.May told parliament on Monday she would not accept the EU's proposal for such a backstop because, she said, it could break up the United Kingdom.Germany well-prepared for all Brexit scenariosOn Tuesday, a German official repeated the EU's line that the backstop needed to be legally watertight and without it there would be no Brexit deal.Germany's European Affairs Minister Michael Roth offered this advice to May: "Take responsibility and be constructive."But other ministers arriving in Luxembourg for a meeting of EU ministers pointed to the progress made so far in the Brexit talks.May will update her cabinet of top ministers on the Brexit negotiations later on Tuesday, aware that some have come under pressure from Conservative eurosceptic lawmakers to persuade her to change tack over her so-called Chequers plan.Germany urges May to 'take responsibility' to get Brexit dealEight of those ministers, some with concerns over Chequers and plans for a backstop, met late on Monday over pizza to discuss Brexit, the Telegraph newspaper reported, after reports that some may resign if May presses ahead.May has so far shown little sign of moving away from the proposal for future ties hashed out at her country residence, and tried to make clear to lawmakers on Monday that the issue was now over the backstop - part of Britain's withdrawal terms.Talks with the EU reached a stalemate on Sunday, increasing the possibility of a no-deal Brexit, which, some companies say, could disrupt trade, delay the movement of goods and starve the world's fifth largest economy of investment.Dutch minister hopes for deal but prepares for hard BrexitEU and British officials suggest it is unlikely that there will be any agreement on the backstop at this week's summit, but both are hopeful that progress can be made."Even if in this week's debate we are not going to have any kind of deal, there is still time, there is still possibility to get a deal," Latvian Foreign Minister Edgars Rinkevics said in Luxembourg. 
Under growing EU pressure, May meets her ministers on Brexit
Backstop
The main disagreement over the border issue has been over a EU-suggested backstop – keeping Northern Ireland in the EU single market and customs union after Brexit until a solution is found – because it would create a sort of a border within the UK in the Irish Sea.
May has said they would not give in to any solution that would divide the UK.
Northern Ireland’s biggest political party, the Democratic Unionist Party (DUP), has said it would not agree on any final deal that would separate Northern Ireland from the rest of the UK.
The DUP’s support is crucial for the continuation of May’s government after her party lost the majority in parliament following a snap election last year and the Tories and the DUP signed a confidence-and-supply deal which effectively means the DUP helps keep the Conservatives in power.
Germany is well-equipped for all Brexit scenarios, a government official said on Tuesday, adding that a swift Brexit deal would be best both for businesses and citizens.The official also said significant progress had been made in negotiations on Britain's looming exit from the European Union and added that a so-called "backstop" for the Irish border in the exit agreement needed to be legally watertight.The official ruled out a Brexit agreement without a solution for the Irish border. Germany: Merkel ally vows 'grand coalition' is stableGermany's Maas hopes reason prevails to reach Brexit deal
Germany well-prepared for all Brexit scenarios
What next?
British and EU leaders are expected to meet Thursday to discuss probable next steps to advance further in talks to avoid a no-deal scenario.
But May will almost certainly face a domestic impasse back home as up to 40 Tory MPs signaled last week that they would trigger a vote of no confidence against her as they think she will not deliver a Brexit that people voted for. They particularly are against the idea of leaving the country anchored to EU rules and laws without any say in the EU’s decision-making mechanisms.
She will also face reservations from the DUP over any possible concession regarding the backstop that the EU says is needed for a final deal.