MEPs threaten to veto Brexit offer on European Union nationals

Roughly 4-in-10 UK firms report Brexit hit to investment: CBI

The European Council President said it was "below expectations". The EU has publicized its preferred agenda, which includes the settlement of issues including citizens' rights and financial obligations, before discussions turn to trade agreements.

Just two days before the start of the new round of talks, former British Prime Minister Tony Blair said, in his biggest intervention yet against Brexit, that Britain could remain in the European Union despite its Brexit referendum vote.

Sterling snapped a three-day advance ahead of the talks that are likely to focus on protecting citizens' rights, which has been a key sticking point so far.

He will come back to Brussels on Thursday for more talks with Barnier and a news conference.

Pressed on why people were leaking details, Mr Fox said: "I think there's too much self-indulgence and I think people need to have less prosecco and have a longer summer holiday". The EU has demanded Britain to pay some 60 billion euros (70 billion US dollars) as exit fee.

May's minority government remains fragile one month after the snap June 8 election in which her Conservative Party lost its majority, forcing it to seek an alliance with Northern Ireland's small ultra-conservative Democratic Unionist Party.

On Thursday, the British government introduced a draft law that would formally end Britain's European Union membership, as preparation for eventually divorcing the bloc and gaining back legislation power of parliaments.

On Sunday, finance minister Philip Hammond, an advocate for a transition to Brexit, said most ministers now agreed with him: "Five weeks ago the idea of a transition period was quite a new concept".

Brexit negotiations resumed in Brussels on Monday against a backdrop of political infighting among British ministers over the terms of Britain's departure from the European Union.

"We made a good start last month but we are now getting into the substance of the matter", British Brexit Secretary David Davis told reporters as he was welcomed at the European Commission in Brussels by the EU negotiator Michel Barnier.

Pictures showed no notes on the table in front of Davis and his two advisers, in contrast to sheaves of paperwork brought by Barnier and his team.

The depth of division among Prime Minister Theresa May's ministers was highlighted over the weekend as Hammond was accused of using the Treasury to "frustrate" the Brexit process.