Ireland warns on lack of progress on Brexit trade deal

Simon Coveney said fishing rights remained a problem with the 31 December deadline or a UK-EU agreement looming and any deal requiring approval by EU countries. The EU had wanted substantial progress before a meeting of the bloc's 27 heads of state on Thursday.

Coveney said: “If there is not a major breakthrough over the next week to 10 days then I think we really are in trouble and the focus will shift to preparing for a no-trade deal and all the disruption that that brings,” he said. "I think the British government understand only too well what’s required for a deal this week, the real question is whether the political appetite is there."

He said a deal was still more likely than not but that he would not be shocked if the process fell apart. The talks are entering their final stretch with Boris Johnsons's government disrupted by the departure of his chief adviser Dominic Cummings and with the prime minister self-isolating after meeting an MP who was diagnosed with Covid-19.

The UK's chief Brexit negotiator, hardliner David Frost, said on Sunday there had been "some progress in a positive direction in recent days" but stressed that his stance was unchanged. Frost was reported to have considered quitting during a week of turmoil that culminated Cummings, another uncompromising Brexiter, leaving Downing Street abruptly.

Coveney said failing to agree a deal would be disastrous for the UK and for Ireland. He said almost no progress had been made on EU access to UK fishing waters since the summer. Fishing is said to make up less than 0.1% of the economy but the matter has become totemic for advocates of the UK freeing itself of EU rules.

"It’s not good," Coveney said. "The negotiations are not in a good place when it comes to fishing."

Leading European legislators have said the European parliament will need at least three weeks to consider any deal before voting. A vote is scheduled for 16 December though reports have said a last-minute session could be held on 28 December.

Lack of progress on trade talks helped keep a lid on gains for share prices in London on Monday despite optimism about the potential for vaccines to stem the Covid-19 pandemic. The pound edged down 0.15% to €1.1136 at 11:22 GMT and was little changed against the dollar at $1.3193.

Susannah Streeter, an analyst at Hargreaves Lansdown, said: "Traders wait in limbo for any news of significant steps towards a trade deal between the EU and the UK. It had been hoped that Thursday’s meeting of EU leaders could be when an agreement would be announced, but it’s looking increasingly likely that it will be just another deadline that will just loom and pass, and instead talks will go down to the wire.’’