The EU sees Britain's Brexit approach as a ‘managed capitulation’ rather than negotiation

Analysis: To Brussels, May’s position appears inexplicable – offering terms that have already been ruled out, says our Europe Correspondent, Jon Stone

'Frosty' relations: the PM and EU leaders are struggling to work together (Getty)

Angela Merkel said on Tuesday night a detailed version of Britain’s post-Brexit plans must be worked out in the next month – but there has been no sign of any progress since the prime minister’s humiliation in Salzburg last week.

Following her defiant televised address on Friday, the tone of Theresa May’s meetings with officials from the EU are said to have been “frosty”, just as the two sides need to thrash out an agreement.

In Brussels people privately speak of a genuine collapse in trust between the two sides, with each responding to an escalation by the other with their own escalation. Everyone is waiting to see how the Tory conference will pan out next week – will they even be negotiating with May by the end of the year?

On the eve of the Salzburg summit it looked like a deal on the Irish border might be closer; for months it had been the main sticking point. But just as compromise seemed close on Ireland, the future relationship issue has reared its head again and looks intractable.

To those in Brussels the UK’s moves in negotiations appear inexplicable, offering terms that have already been ruled out well in advance.

For a deal on the future relationship, the prime minister would have to back down completely and either ditch her red lines and go for a Norway-style, close relationship, or accept she’s only going to get a Canada-style free trade agreement. But she lacks political room for manoeuvre in Westminster and dug herself in even further on Tuesday, effectively ruling out the only offer on the table from the EU.

The EU does not really see this as a negotiation: one clued-up Brussels observer described the EU’s approach to me as Britain’s “managed capitulation”. It summarises the situation well: for progress to be made Ms May would have to accept that Chequers is dead – as everyone in Brussels already sees it.

But there seems to be no sign of that happening. The prime minister said it was unacceptable for the EU to reject her plan without offering a counter-offer, but the response in Brussels is simple: “Or what?”