Ireland’s European commissioner, Phil Hogan, urged UK Prime Minister, Theresa May to change her Brexit plans dramatically to prevent a mounting crisis over the Irish border. The threat of a hard Irish border has emerged as the major obstacle to Mrs May’s plans of advancing Brexit trade talks at a crucial summit in December. Mr Hogan told the Observer newspaper that it was a “very simple fact” that remaining inside the single market and customs union, or allowing Northern Ireland to do so, would end the standoff.

DUP leader, Arlene Foster told her party’s annual conference that her 10 MPs will use their parliamentary muscle to prevent any ‘special status’ post-Brexit deal for Northern Ireland. She said ‘special status’ could “decouple” the region from the rest of the UK. Mrs Foster welcomed assurances from Theresa May that there will be no “internal barriers” between Northern Ireland and Britain after the UK leaves the EU. In relation to talks with Sinn Féin aimed at restoring an Executive at Stormont, she said “time is short” to strike a deal; Sinn Féin, she said, must choose between making a deal with them or having direct rule ministers in place.

Taoiseach Leo Varadkar has stood by his Tánaiste (Deputy Prime Minister), Frances Fitzgerald in the midst of a crisis threatening to collapse the Irish government. Ms Fitzgerald has faced questions about her handling of a police whistleblower controversy when she was Minister for Justice. Fianna Fáil, the Republic’s main opposition party, has tabled a motion of no confidence in Mrs Fitzgerald. Mr Varadkar said he would support his Deputy, and hopes that talks with Fianna Fáil leader Micheál Martin could resolve the matter. However, if an election was to happen, he said “it would be better to have it done before Christmas”.

UK Chancellor, Philip Hammond announced the government’s first budget since the Conservative Party lost its majority in the House of Commons at June’s election. Mr Hammond said he will reduce stamp duty for first-time homebuyers, and earmarked £1.5bn to cut waiting times for universal credit claimants. He revealed that the economy would grow at a much slower rate than he expected at the time of the last budget in March; essentially, he shaved around half a percentage point a year off his growth forecasts for the coming years. However, Mr Hammond said the Treasury will still be able to meet his target to cut the deficit to below 2% of GDP by the end of the parliament.

German Chancellor, Angela Merkel vowed to get a government in place as soon as possible after talks between her Christian Democrats (CDU) and smaller parties aimed at forming a coalition broke down. Mrs Merkel said she wants to avoid a re-run of September’s elections, which saw her party reduced to 33 per cent of the vote. Later, the Social Democrats (SPD), Germany’s main centre-left party, agreed to enter coalition talks. If Mrs Merkel is unable to form a new coalition, she may have no choice but to either form a weakened minority government or face new snap election.

Also published on Medium.