Von der Leyen sees 'path' to Brexit deal

The president of the European Commission raised hopes of a Brexit trade deal on Wednesday but the UK urged caution as talks continued.

"As things stand, I cannot tell you whether there will be a deal or not," Ursula von der Leyen told the European Parliament on Monday morning. "But I can tell you that there is a path to an agreement now. The path may be very narrow but it is there."

Von der Leyen's comments were her most encouraging assessment of the discussions since the talks hit wall in November. Both sides were reported to be ready to walk away at the weekend but negotiations continued with the 31 December deadline looming.

UK MPs were also put on standby for an extended sitting next week that could let the House of Commons inspect a potential deal, according to the Financial Times. Brexit enthusiasts among Tory MPs appear increasingly willing to tolerate the agreement taking shape, the FT said.

Boris Johnson's spokesman said on Wednesday afternoon there had been "some progress" but that no deal was still the most likely option.

The pound edged up 0.07% to €1.1086 at 12:17 GMT, reversing an earlier drop. Sterling rose as much as 0.65% to $1.3548 - a high of more than two years helped by the weak dollar. At 12:17 the pound was up 0.4% to $1.3514.

Von der Leyen said fishing rights were still a difficult issue but suggested progress had been made on the so-called level playing field for fair competition between the UK and EU.

"We have found a way forward on most issues but two issues still remain outstanding: the level playing field and fisheries," she said, according to Sky News. "I am glad to report that issues linked to governance now have largely been resolved. The next days are going to be decisive."

Von der Leyen said it sometimes felt as though the question of fishing rights was unresolvable but she said talks would continue. Fisheries have become a totemic subject with the UK threatening to police its waters with gunboats but the level playing field is a more substantive issue.