Sufficient progress have been made in Brexit negotiations to begin work on second phase, EU Commission chief Jean-Claude Juncker said Friday that after his meeting with British Prime Minister Theresa May in Brussels on Friday.
May made an early morning dash to Brussels after negotiators worked through the night to seal an agreement on the terms of Britain's departure from the bloc.
Juncker's chief of staff Martin Selmayr tweeted a picture of white smoke -- the sign used by the Vatican to signify the election of a new pope -- shortly after her arrival.
The EU had set a deadline of Sunday after the last talks on Monday broke down when May's Northern Irish allies objected to terms for future arrangements for the Irish border.
Without a divorce deal the EU has warned it will be unable to open up talks on a trade deal and a transition period at a leaders summit on Friday.
May and European Council President Donald Tusk are set to meet, with Tusk to give a statement at 0730 GMT.
Juncker spoke first with Irish Prime Minister Leo Varadkar then May on Thursday night in a bid to break a deadlock over the wording of a deal on future arrangements for the Irish border.
- Border quandary -
The EU insists on making sufficient progress on the Irish border, on Britain's divorce bill, and on the rights of European citizens in Britain before unlocking the second phase of negotiations.
Those would deal with a transition period for around two years after Britain leaves the bloc on March 29, 2019, and a future EU-UK trade deal.
But talks between May and Juncker in Brussels on Monday broke up without a deal after the pro-British DUP party in Northern Ireland that props up the British leader's government objected to a clause in the deal.
The wording had said that British-ruled Northern Ireland would be in "alignment" with EU rules to avoid a hard border with the Republic of Ireland, as Dublin insists.
Senior DUP lawmaker Jeffrey Donaldson had said late Thursday that "discussions are ongoing".
The European Commission had earlier Thursday set a deadline of Sunday for May to reach a deal on divorce terms so they can be approved by member states in time for the summit.
- 'Totally and utterly incompetent' -
Earlier Thursday, Schinas dismissed British newspaper reports that the Sunday deadline could be extended into next week as "not correct".
Scotland's nationalist leader showed little patience, accusing the British government of being "totally and utterly incompetent" on Brexit.
First Minister Nicola Sturgeon said "the real lesson" of the past week was that Scotland "will always be at the mercy of reckless decisions taken by Tory governments at Westminster" unless it becomes independent.
"The sooner we are in control over our own future here in Scotland the better, and this week has proved it," she added.
Eurogroup chief Jeroen Dijsselbloem offered some calming words, saying Britain's City of London financial hub "will not fall apart" after Brexit even if it loses the right to allow banks to trade freely across the bloc.
Dijsselbloem, the Netherlands finance minister who chairs meetings of his counterparts in the 19-country eurozone, said that some businesses would nevertheless have to relocate.
"I don't believe that the City will fall apart and that everyone will flee. I don't think that's how it's going to work," he told a European Parliament committee.
His reassurances come at a time when Britain's finance sector is anxious about losing the "passporting" rights which allow large international banks to trade throughout the EU while being based in Britain.
