Brexit negotiations were deadlocked again tonight – despite Theresa May's Florence speech gamble.

The Prime Minister hoped to break the stalemate between the EU and UK with last week's key address in the Italian city.

But the move failed to ease the standoff as the fourth round of talks got underway in Brussels.

Mrs May wants a transition of “around two years” after the UK quits the bloc in March 2019 to give businesses time to come to terms with leaving.

But that can only be granted by the EU.

This is the fourth round of Brexit talks (
Image:
PA)

Chief Brexit negotiator Michel Barnier said: “The EU has to decide whether it will have a transitional period and whether it is in its interests.”

Speaking at a press conference, he added: “The EU is keen and eager to understand better how the UK Government will translate the Prime Minister's speech into negotiating positions.

“This is essential and would enable us to advance this week, I hope, and make real progress over the coming months.

“Real progress on the three main issues – citizens, Ireland and financial settlement – is essential to move the discussion onto the transition as well as on the future.

Michel Barnier wants more clarity on Britain's positions (
Image:
Reuters)

“These are separate issues.”

Britain triggered Article 50 , the formal mechanism for leaving the EU, in March.

But talks have stalled and the EU will only move onto discussing a future trade deal once “sufficient progress” has been made on the three early issues.

“We don't need to remind ourselves that we are six months into this process,” warned Mr Barnier.

“We are getting closer to the UK's withdrawal, and I think this moment should be a moment of clarity.”

We've been here before (
Image:
REUTERS)

A major sticking point is the size of Britain's divorce bill.

The UK would keep pumping money into the Brussels budget during a transition, and also fork out cash to remain part of specific programmes.

Mrs May stopped short of offering a figure but early estimates suggest the Government is ready to pay about £20billion over two years.

Brexit Secretary David Davis insisted the PM's Florence speech was an attempt to move talks forward.

He said: “We are laying out concrete proposals and there are no excuses for standing in the way of progress.

The never-ending story (
Image:
REUTERS)

“It will take pragmatism on both sides to make progress, and I hope we can achieve that this week.”

The PM today met her Irish counterpart Leo Varadkar at No 10.

He said not enough progress had been made during EU divorce talks to switch negotiations onto a post-withdrawal trade deal.

The Taoiseach added: "I don't think, at this stage, it would be possible to say that sufficient progress has yet been made, but it may well be possible by the end of October when we meet in Brussels."

Leo Varadkar was in Downing Street for talks with Theresa May (
Image:
PA)

Mrs May had been tipped to attempt to go over Mr Barnier's head and bid to talk European leaders directly.

But Mr Varadkar warned: "Certainly, we will be very much guided by the report that Michel Barnier will make to the prime ministers and also the report that the European Parliament will make."