Video report by ITV News Correspondent Dan Rivers
The EU’s chief Brexit negotiator Michel Barnier has said he is “strongly opposed” to key parts of Theresa May’s proposals for a post-withdrawal trade deal as the PM received a series of blows to her Chequers plan.
Speaking to a German newspaper, Mr Barnier said a suggested “common rulebook” for goods would kill the European project, while warning the British car industry would particularly suffer from the separation.
The tough comments came as former Brexit secretary David Davis branded the Chequers blueprint - which triggered his and other Cabinet resignations - as being “actually almost worse than being in” the EU.
And another concern for the PM emerged with reports election strategist Sir Lynton Crosby is manoeuvring to derail the PM’s EU withdrawal agenda with a co-ordinated national campaign.
Mr Crosby masterminded Boris Johnson’s successful London mayor campaigns along with David Cameron's national election victory.
Mrs May earlier insisted she will not be pushed around by Brussels as Brexit negotiations heat up as EU withdrawal nears - and again ruled out holding a second referendum.
What were the key lines from Michel Barnier's attack?
Mr Barnier's bruising attack came in an interview with German newspaper Frankfurter Allgemeine Zeitung.
He told the paper: "We have a coherent market for goods, services, capital and people – our own ecosystem that has grown over decades. You cannot play with it by picking pieces.
"There is another reason why I strongly oppose the British proposal. There are services in every product. In your mobile phone, for example, it is 20 to 40% of the total value."
Mr Barnier also told EU car manufacturers they would have to use fewer British parts after Brexit in order to keep to tariff export rules.
Referring to EU trade rules, Mr Barnier said: “Outside of the internal market and the customs union, this involves customs formalities and controls that hinder ‘just in time’ production.
“In order for EU carmakers to benefit from the tariff benefits of the EU-Korea agreement, only a certain proportion of the services may be provided in a car in a third country.
“Businesses have to be careful not to use too many parts from Britain in their vehicles in the future.”
He added: “By the way, the British have a choice. They could stay in the single market, like Norway, which is also not a member of the EU – but they would then have to take over all the associated rules and contributions to European solidarity. It is their choice.
“But if we let the British pick the raisins out of our rules, that would have serious consequences. Then all sorts of other third countries could insist that we offer them the same benefits. That would be the end of the single market and the European project.”
Responding to Mr Barnier's remarks, a Government spokeswoman said: "We are confident that we have put forward a proposal that is precise, pragmatic and that will work for the UK and the EU.
"This proposal achieves a new balance of rights and obligations that fulfils our joint ambition to establish a deep and special partnership once the UK has left the EU while preserving the constitutional integrity of the UK. There is no other proposal that does that.
"Our negotiating teams have upped the intensity, and we continue to move at pace to reach - as Mr Barnier says - an ambitious partnership, which will work in the mutual interests of citizens and businesses in the UK and in the EU."