The Tánaiste believes EU leaders will wait until the last minute to decide on whether to grant the UK an extension to the Brexit process.
Simon Coveney was speaking as the UK Prime Minister prepares to hold last minute Brexit talks with the leaders of France and Germany.
Theresa May will meet Angela Merkel and Emanuel Macron in Berlin and Paris ahead of Wednesday’s emergency summit of EU leaders.
She will use the meetings to set out her case for a Brexit extension until June 30th.
She will tell her European colleagues that talks between the UK Conservative and Labour parties aimed at finding a compromise way forward are continuing, with Downing Street “committed to finding a way through.”
Speaking as he arrived at the General Affairs Council in Luxembourg this morning, Minister Coveney said he believes there is a “strong view that countries need to work together to avoid a no deal Brexit.”
He said the “new approach” taken by Mrs May in reaching out to the Labour Party is welcome and said EU leaders are open to an extension.
He warned however that the leaders will “certainly want to see a plan to go with that extension so that everybody knows that the time is being used to conclude the first phase of Brexit – which requires the ratification of the withdrawal agreement and if necessary changes to the future relationship declaration.”
“We will have to wait and see where the negotiations are at in London, I think, right up until the council begins,” he said.
“This is fluid situation and people are talking to each other seriously about a way forward.
“I think we have to give time and space to that process; respect it but at the same time hope that by the time Prime Minister May comes to the European Council that there will be as much clarity as possible on a plan to use extra time constructively so that the EU and the UK can work together to try to finalise this first phase of the Brexit process.”
Theresa May will use her meetings with Chancellor Merkel and President Macron to set out her case for a Brexit extension until June 30th.
The EU Council President Donald Tusk is reportedly calling for a longer extension - potentially through to March 2020.
The so-called ‘flextension’ would include a clause that would allow it to be cut short if the UK Parliament passed the Brexit Withdrawal agreement.
Mrs May reportedly believes a shorter extension would be more effective as it would keep the pressure on UK MPs to pass the deal.
Extension
Speaking in Luxembourg, chief EU negotiator Michel Barnier warned that the length of any extension will have to be “linked to the purpose of such an extension.”
He noted that the Brexit Withdrawal Agreement cannot be changed at this point, although the political declaration can be updated if the UK wishes.
“The Withdrawal Agreement is not going to be reopened,” he said. “It is not up for negotiation again; that continues to be the case.
“The political declaration – which will set the framework for future relations – can be improved.
“We can provide an increased level of ambition if that is the wish of the UK.”
Noting that the Labour Party has been clear about its preference for remaining in a customs union with the EU, he said the EU was “ready for that” provided the principals of the EU are respected and the UK respects what a customs union is.
EU summit
Any decision to delay the UK's departure must be taken unanimously by the 27 EU leaders when they meet tomorrow night.
President Macron has taken one of the toughest stances in the EU on the potential extension – warning that he could veto the plan unless Mrs May offers credible plan for getting the agreement passed.
Chancellor Merkel, on the other hand, has been keen to ensure a managed exit for the UK – and has regularly talked about a long extension.
Speaking after a meeting with the chief EU negotiator Michel Barnier yesterday, the Taoiseach Leo Varadkar said he was open to an extension, “to allow time for these discussions to run their course and come to a conclusion.”
"Above all, we want the withdrawal agreement to be ratified so that negotiations can begin on the future relationship," he said.
Backstop
Mr Barnier again said that the EU “will stand fully behind Ireland” regardless of what happens with the talks.
"You have our full support, and I have said before the backstop is currently the only solution we have found to maintain the status-quo on the island of Ireland,” he said.
Compromise
It comes as talks between the UK Conservative and Labour parties aimed at finding a compromise way forward broke up without agreement last night.
A Downing Street spokesperson said negotiators were "committed to finding a way through in order to ensure we can leave the EU and deliver on the referendum."
A Labour spokesperson also confirmed that both sides would seek to "attempt to secure a Brexit compromise."
However, Labour leader Jeremy Corbyn again warned that the Government had not yet shown itself ready to do so.
"The key issues that we must see real movement on to secure an agreement are a customs union with the EU, alignment with the single market and full dynamic alignment of workers' rights, environmental protections and consumer standards," the Labour leader said.
"We are prepared to talk and put forward our view, but talks have to mean a movement and so far there has been no change in those red lines."
Brexit
Last night, UK MPs and peers in the House of Lords approved legislation requiring Mrs May to seek an extension to avoid a no-deal exit on Friday.
The EU has made it clear that any exit date later than May 22nd would mean the UK must hold European parliament elections.
The UK Government has insisted it remains committed to avoiding that scenario – however it has acknowledged that, if it is still a member of the EU by then, it is legally obliged to hold the elections.
If no extension can be agreed, the UK faces the prospect of crashing out without a deal this Friday April 12th.