The Taoiseach and the Finance Minister are in Belfast and London for meetings surrounding Britain's exit from the EU.

Leo Varadkar has travelled north to meet business leaders from both sides of the border.

Meanwhile, Paschal Donohoe is in London to meet UK Chancellor Sajid Javid.

Minister Donohoe has said he looks forward to meeting Mr Javid and maintaining close ties with the British Government.

The meeting is scheduled to “review current international economic developments” – and will give the two men a chance to discuss the ongoing Brexit impasse.

The new UK Prime Minister Boris Johnson has called for the Irish border backstop to be removed from the Withdrawal Agreement.

"Absolutely necessary"

Minister Donohoe warned that it remains an “absolutely necessary” part of the deal.

“Brexit poses a serious challenge for all of us, and in particular for Northern Ireland where successive British and Irish Governments have worked closely together to promote peace and advance reconciliation,” he said.

“The backstop is the only viable solution on the table that avoids any physical infrastructure and related checks and controls, preserves the all-island economy, and fully protects the Good Friday Agreement, as well the integrity of the EU Single Market and Ireland’s place in it.

“It remains an absolutely necessary part of the Withdrawal Agreement.”

The UK Chancellor Sajid Javid leaving Downing Street in London, 02-08-2019. Image: Aaron Chown/PA Wire/PA Images

No-deal

Reports in Brussels this morning indicate that EU officials now believe that the UK will crash out without a deal and are now operating on a “working hypothesis of no-deal.”

Mr Johnson’s top Europe advisor travelled to Brussels last week to deliver the message that the UK will be leaving on 31st October “whatever the circumstances.”

A senior EU diplomat is quoted by The Daily Telegraph and The Guardian as saying a no-deal Brexit appears to be the UK government's “central scenario.”

They are reported to have said: “Our working hypothesis is no-deal.”

The diplomat added: “It was clear the UK does not have another plan. No intention to negotiate, which would require a plan.

“A no-deal now appears to be the UK government's central scenario.”

EU officials are reported to have said there is no basis at the moment for “meaningful discussions” with the UK over Brexit.

Backstop

Mr Frost reportedly told officials that a technological solution to the border issue is the UKs preferred option; however, he also admitted that no solution would be ready in time for Brexit on October 31st.

A Brussels source is said to have concluded after the discussion: “Even if the EU gave up the backstop there is no alternative.

“That message has now gone loud and clear to capitals, it was useful to hear it from horse's mouth.

“Reality is sinking in.”

Brexit

Minister Donohoe warned that a “no-deal Brexit is in no-one’s interests.”

“Along with our partners in the EU27, we remain firmly of the view that the best way to ensure an orderly withdrawal and fully protect the Good Friday Agreement is to ratify the Withdrawal Agreement,” he said.

He said he looks forward to working with the new UK Government to continue our “close bilateral cooperation”

“The UK is our nearest neighbour, key trading partner and friend, and I look forward to seeing this important relationship grow and diversify in the years ahead,” he said.

Additional reporting from IRN ...