Theresa May made a bold bid to unblock the Brexit talks today with concessions on rights for EU citizens, money and legal enforcement.
The Prime Minister used a crucial speech in Florence to declare that Britain will cover the huge hole left in Brussels' finances by our departure until the end of 2020 - contributing potentially another 20 billion euros.
She also said the European court could help enforce the rights of EU nationals after we formally leave the bloc - easing back a previous red line - and admitted it would not be possible to impose tougher immigration measures quickly.
But Mrs May said in return for the 'generous' financial contribution the UK must have full access to the single market for the next two years.
Setting out her vision for a post-Brexit future, she ruled out existing models for trade arrangements such as Canada and Norway, saying: 'We can do better than that.' SHe also insisted there should not be a hard border with Ireland.
However, the tightrope walk Mrs May must carry off was laid bare as Brexiteers accused her of effectively keeping us in the EU for another two years and wasting more money.
Flanked by Cabinet ministers including Boris Johnson and Philip Hammond at a Renaissance church in Italy, Mrs May said the UK's desire to be 'strong' partners with the EU remained undimmed - but it wanted to be a 'sovereign' nation taking its own decisions.
'The British electorate made a choice,' she told the audience. 'We share a responsibility to make this work.'
Mrs May said membership of the EEA - effectively the single market - would mean the UK would 'have to adopt the EU rules, rules over which we have little influence and no vote'..
That would inevitably lead to 'friction and a damaging reopening of a conversation about our relationship with the EU'.
'We can do so much better than this. Let us be creative as well as practical,' she added.
Mrs May added: 'We can do so much better than this.'
Spelling out her vision for a transition period, Mrs May said it should mirror the existing arrangements.
‘During the implementation period access to one another’s markets should continue on the current terms and Britain should continue to take part in existing security arrangements,' Mrs May said.
‘The framework for that transition period …would be the existing structure of EU rules and regulations.’
She added: ‘During this implementation period people will continue to be able to come and live and work in the UK but there will be a registration system.
Mrs May told Europe's leaders they have a duty to future generations to strike a good deal, saying: 'The eyes of the world are on us.'
'The strength of feeling that the British people have for control and for the direct accountability of their politicians is one reason why throughout its membership, the UK has never totally felt at home being part of the EU and perhaps because of our geography and history the EU never felt like an integral part of our national story.
'The profound pooling of sovereignty which is a crucial feature of the EU permits unprecedentedly deep cooperation which permits benefits but it also means that when countries are in the minority, they must sometimes accept decisions they don't want, even affecting domestic matters with no market implication beyond their borders.
'When such decisions are taken, they can be hard to change. That is our choice, it does not mean that we are no longer a proud member of the European nations…. it does not mean we are turning our back in Europe or worse that we don't wish the EU to succeed. The success of the EU is profoundly in our national interest.'
Mrs May said that 'Britain's future is bright' regardless of whether they agree to a trade deal, because of the UK's 'considerable' economic strengths and 'indomitable spirit'.
Mrs May urged her EU counterparts to seize the opportunity to 'write a new chapter in European history' together so both sides thrive.
She will confirm Britain is to leave the EU in March 2019, but will set out plans for a 'phased transition' of up to two years as the new arrangements are put in place.
In a gesture that she hopes to move talks forward, Mrs May will for the first time pledge that Britain will continue to pay into the EU's coffers during this 'implementation phase'.
This will ensure there is no hole in the bloc's current seven-year budget, which runs until 2020.
The Prime Minister's offer will ensure that Eastern European member states will receive no less money from Brussels and others such as Germany will not be forced to pay more into the budget.
A precise figure will not be put on the money but it is expected that the payments would be for about £20bn over two years.
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