Enough to get phase one of the negotiations over the line, and, assuming it gets the nod from the European Council next week, to start talks about a trade agreement, rested and refreshed. Heres our political editor, nick watt. When everyone else is having fun, breaking up can be so hard, as theresa may discovered at an eu summit last year. Or maybe we do have friends after all . At the end of a week of heartache, theresa may finally pulled off a deal with the eu on stage one of the brexit negotiations. Sufficient progress has now been made on the three terms of the divorce. I very much welcome the prospect of moving ahead to the next phase, to talk about trade and security, and to discuss the positive and ambitious future relationship. But after mondays humiliation, how did it happen . Shortly after pm in downing street last night, theresa may finally achieved a breakthrough when she sort of won over the dup in a telephone call with Arlene Foster. At around midnight, she left downing street, skipping the Office Christmas party, to catch two hours sleep at her constituency home in maidenhead. Then, at 3 45am, she was picked up for an raf flight to brussels. The deal covered the three main separation areas. Theresa may has resisted pressure to keep Northern Ireland in the eus Single Market and Customs Union. But the eu has secured an alignment of roles in areas related to cross border cooperation in the event of no deal. The uk cut an initial eu demand for a brexit payment of up to £65 billion by around a half. But the uk will still pay between 36 and £39 million. European court of justice will have a limited role, overseeing the rights of eu citizens the uk for eight years rather than 15. But eu citizens lawfully resident in the uk on brexit day will have the rights guaranteed. Weve heard a lot about the tory civil war and europe. Well, today, the tribe appeared to embrace the spirit of christmas goodwill. This agreement is a significant political achievement for the Prime Minister. Theresa may has absolutely put her mark on this. She has stood up and she has not been found to be wanting. Others werent quite buying into the accord. I listened to michael gove and borisjohnson today and thought, are we on the same side . i simply couldnt believe it. I will say this to you, i think within the next 48 hours we will hear a lot more conservative voices who perhaps kept quiet this morning saying, actually, theyre not happy with whats happened today. At the heart of this deal lies a cabinet truce on brexit. The leave side are so concerned to preserve the actual goal of leaving that they are willing to give ground on the details. The remain side have accepted the uk is leaving, but theyve been pushing for a gentle brexit. The Prime Ministers challenge is to preserve that truce going into the next round of negotiations. One minister who supported remain hopes the uk will hug the eu close. This talk of ongoing alignment, i think there will be some key strategic sectors, looking at the Financial Services it applies to professional services, biotech, life sciences, a number of sectors like that were actually a fragmentation of the european offering in global terms would be bad news notjust for us, but the eu 27. I think in those sort of areas i suspect that in the years to come we will want to mirror many of the regulations and directives that come out of europe. But, the overwhelming bits of the economy, both in goods and services, i think we may well want to move ahead positively with free trade deals as quickly as possible. Labour believes this has been a less than glorious week for the government. Look, theresa may should have hit the first deadline in october. She failed. She looks as if shes going to hit this deadline. That is progress, it would be churlish of me not to recognise it as progress. But what we cant have Going Forward is the absolutely chaotic scenes that weve seen this week. But in whitehall, they are likening the deal to churchill and el alamein. The word is, it is the end of the beginning. Nicks with me now. Nick, whats the mood in downing street tonight . It is absolute delight. I think it is stunned relief. We have done it and this Prime Minister has at last achieved success. When the Prime Minister left for brussels, she did not know how this was going to go down politically with her back benches and with the dup. Arlene foster had not wholly signed up to this. But talking to the brexiteers who have been critical of this deal, they said this evening they are not planning to rock the boat. But they do have what is described as, residual anxieties in two areas. One, these very limited circumstances the Supreme Court will refer to the European Court ofjustice over citizens and this regulatory alignment is related to Northern Ireland. Whatever that proves to be. What happens now . Adam fleming in brussels has got a leak of the draft conclusions for the European Council meeting in brussels on thursday and friday. Good news and bad news. The good news is the European Council is suggesting yes to a transition deal for two years. The bad news is the entire body of eu law would apply to the uk in that period and any new laws and regulations introduced in that period would apply to the uk, which would have no votes. That crosses one borisjohnsons red lines, which might explain why the chief whip sent out a photo of him two day meeting the Prime Minister in the early hours because the Prime Minister will have a Cabinet Meeting and discussion on the future. Thank you very much indeed. Well, government ministers today were so pleased with the outcome, and the lack of incoming so far from the right of the party, it was as if christmas had come early. Certainly the justice minister, dominic raab, was in a chipper mood when i spoke to him earlier at westminister. I asked him whether todays deal was proof the government had caved to eu demands. We are a third of the way through a two year negotiation period, and today was a really important step forward on eu nationals and their rights here in the uk, expats. Weve opened the door to trade talks, very important for business confidence. Weve narrowed the bones of contention, but not settled all the issues on Northern Ireland and money. So, yes, there is. You havent settled any of the issues on Northern Ireland except there will be no hard border. Well, a very important issue to settle. But youre right. Theres going to be some hard yards left. Its going to go down to brass tacks. But were only a third of the way through the negotiations. And as a result of taking this step, weve opened up the negotiations to talk about that future Partnership Deal and the win win of that deal on trade and Security Cooperation and all of those other things is within sight. So i think it indicates the Prime Ministers approach. Full alignment is essentially part of the Single Market, beside the Single Market, beside the Customs Union on these issues agriculture, education, transport, environment, waterways, social security, tourism, inland fisheries, health, urban and rural development. You have no power on these Going Forward. You will be takers, not rule makers. The eu will keep you in line in all these things. Kirsty, kirsty, you cant have it both ways. You cant say weve done nothing on Northern Ireland and then say weve given all the game away. The reality is, what weve said today on alignment is the default position if none of the options are agreed but we still want and have a package within sight is that we would have alignment. And what alignment means is on the principles, the goals, the policy goals. For example, if it was on a certain area like, i dont know, agricultural standards, but you retain the regulatory means to delivering them at home. Lets just take agriculture. And there will be a european law on the movement of animals that you will have to adhere to if there is full alignment. Indeed, if there are new laws designed by the 27 on the movement of animals, you will have to adhere to them on full alignment. No, youre wrong on both counts. This is the default position on those areas of north south cooperation in the context of Northern Ireland if nothing else can be agreed. But we want to proceed with the whole package. The detail, the options are still to be chosen. This is all still a matter for negotiations. You can call it strategic ambiguity, you can call it constructive ambiguity. You can call it that. Thats very interesting, youre calling it strategic ambiguity . no, what im admitting to you, very openly and honestly, is that weve agreed principles but the details still need to be ironed out on this very bespoke set of issues around Northern Ireland, which cant be dealt with properly and responsibly outside of the context of the broader negotiation on customs and trade and all those other things which weve said all along. If you dont get an acceptable deal on Northern Ireland, full alignment could continue forever. Well, kirsty, ifs and buts and pots and pans. What i can tell you now is that weve got what we wanted, which was to move forward to talk about trade talks. Weve settled the issue of eu nationals and uk nationals, and, you know, we can open up to those trade talks which we said should have happened at the beginning. Nicola sturgeon said in a tweet today that the uk government promising that there will be no hard border in Northern Ireland means that the government can never again say that an independent scotland will mean a hard border. Shes right, isnt she . No, shes not, but i would of course expect the snp to view anything within the prism of their obsession with independents. With independence. Im sure thats not the way the scottish people think of it. One last try on full alignment. Go for it. Youre in the transition period, you dont have a deal on Northern Ireland, and the eu proposes a new law on agriculture you dont like. You have to adhere to the principle of it . No, we dont. Im sorry, that is not what weve agreed today. What weve agreed, as a default position, ill go over it again if you like, is that if nothing else is agreed and were confident that we can, then actually what we would have is some form of alignment which means that we agree the policy. Full alignment is not some form of alignment the alignment is in relation to the goals you retain the regulatory means of achieving. Were now entering phase two. And in phase two, the draft Eu Council Guidelines say that in phase two what will be decided is that during the transition period there will be four freedoms guaranteed, and britain will still be in the Single Market and the Customs Union. Theresa may on the 9th of october said that in march 2019 when we enter transition, the four freedoms will end, and we will not be in the Single Market and we will not be in the Customs Union. These are diametrically opposed statements. That is the eus negotiation position for phase two. Well, thats going to be a very big row. It is, but weve always said, lets get on and talk about trade and the transition. We cant talk about the transition until were in those trade talks. And im delighted that the eu is now restless to get on and talk about that too. But of course, as youve just pointed out, theres going to be some creases that will need ironing out. Were only a third of the way through these negotiations. But its a major. At least recognise. Come on, kirsty but its a major, major crease. Against all the pessimism, we made a really important step forward. Its a major crease. Go on, give us that theresa may did not say on the 9th of october, on march 2019, i kind of hope that ill be in a position when i enter the transition that actually i might be able to end the four freedoms and i might be able to get the Single Market and i might be able to get the Customs Union. She said on the 9th of october, these things will happen. These are not entirely in her gift. So, first of all, you started by saying that eu communication was what weve agreed for the transition it isnt, its the position. It isnt, its their position. But youre absolutely right, its not entirely within our gift what we negotiate in phase two. Were not there yet. I wouldnt want to get the tambourine out quite yet, kirsty. But were a third of the way through the negotiations, and today was a step forward and an indication of the approach that the pm has taken. Nothing is agreed until everything is agreed. The phrase at the top of the joint eu uk document today that if phase two founders if no trade deal can be struck then potentially whats been decided today could be dumped in the bin. So, the stakes are very high. As dominic raab said, he hasnt got the tambourine out yet. Our diplomatic editor, mark urban, guides us through the next round of chess. There can be no turning back. Britain is leaving the European Union. From the outset, the eu wanted to direct this movie. Its script, one of phased negotiations starting with the three separation issues Citizens Rights, budget liabilities and the irish border. There never really was any chance of the uk picking off Member States on these questions. Their position was solid. It has been interesting how effective the eu has been in keeping the 27 together on the three major issues of the first phase. And they had a clear idea of what they needed the uk to do in that first phase. And actually, step by step, the uk has fallen in line with that approach. Among the 27, the narrative played to us again and again was that theresa may was negotiating first and foremost with her own cabinet. But for veterans of the European Commission, every big negotiation involves both sides arguing among themselves. Its not strange if you look at the Bigger Picture of the trade negotiations. I mean, the European Union is losing time, but also our counterparts are losing time. For example, the reason that ttip stalled was because the american side could not come to a common position. So thats not so extraordinary. Number ten had hoped todays milestone would be reached back in october, after theresa mays offer in florence. But the eu held firm. Downing street blamed octobers failure on french and german intransigence. But it may have helped educate the brexit hardliners in the cabinet. And in the aftermath of that setback, theresa may leveraged her weakness, leading europeans have told me, telling them if you dont give me something here, youre going to end up talking to borisjohnson. The Prime Minister has always known that the leverage would be distinctly limited, and talks might take the form of a fighting withdrawal. How do we know . Because she said it before she became Prime Minister. In a stand off between britain and the eu, 44 of our exports is more important to us than 8 of the eus exports is to them. The reality is that we do not know on what terms we would have access to the Single Market. We do know that in a negotiation, we would need to make concessions in order to access it. And the uk has indeed been making many concessions. Among them, agreeing to the eus negotiating phases that it will pay substantial budget liabilities, and accepting it cannot start negotiating its own trade agreements any time soon. But on Citizens Rights and even the budget issue, the eu has given ground also. So, what about the phase two negotiation, setting out the broad framework for trade, security and so much else . The eu suggests it must be a choice between Single Market membership like norway, or a trade deal like the one done by canada. Theresa may, its clear, wants something much closer than that canadian deal. Compared with what exists between britain and the eu today, it would nevertheless represent such a restriction on our mutual Market Access that it would benefit neither of our economies. Not only that, it would start from the false premise that there is no pre existing regulatory relationship between us, and precedent suggests that it could take years to negotiate. We can do so much better than this. And that expression of Prime Ministerial aspiration, coupled with the concept of regulatory alignment to deal with the irish border, tell us a great deal. It suggests changing as little as possible, a softer brexit. If it was a forerunner of a decision that the whole of the uk would stay in regulatory alignment with the eu, in other words, in the Single Market, in the Customs Union, or very close to them, then thats a very significant policy statement, and one that we havent had before. And of course, it would make a lot of other things easier. As for the eu side, it seems to have glimpsed the direction of travel and is already signalling they are closely aligned. The uk must abandon the vision of some brexiteers for a singapore style deregulated economy. The battle lines have been drawn for phase two, then. The eus demand for a level Playing Field, and the trend towards a softer brexit anyway, will leave many brexiteers asking, what was the point of this . Critically, the uk will have to carve out some sort of exemptions to allow them to restrict freedom of movement and sufficient latitude to create their own trade deals. If you look at the mandate for the second round negotiating of our trade deal, there is a clause in it on the level Playing Fields, and thats the First Time Ever that this is in a negotiating mandate. What it means is that they say, look, you can have the trading deal with europe provided that you are not dumping, that you live up to our competition rules, etc, etc. The level Playing Field for the first time has been defined. That will demonstrate to be a very hard one for great britain. The clock starts now on a phase two negotiation that will test both sides. Its clear now that the uk will align closely with the eu, and that could make it far harder for the brexiteer vision of a freewheeling trading superpower to be fulfilled. Mark urban there. And to discuss this further now im joined by dia chakravarty, the brexit editor for the Daily Telegraph. Jonathan freedland of the guardian. Lbc presenter iain dale. And Stephanie Bolzen the london correspondent, for the german newspaper die welt. And, before we actually say hello to you, lets have a look at the front pages, starting with the mail. Rejoice we are on our way. The price of freedom, the Daily Telegraph goes on to list all of the cost of the deal so far. And on to the guardian. The deal is done, the eu warns of more delays. Stephanie, we dont have die welt, but whats it saying tomorrow morning . Headline is a bit similar to the guardian, saying, happy britain, but europe remained sceptical. The comment on page one also says, well, there is maybe a bit of light at the end of the tunnel. The pragmatism that we are used to buy the brits, the smart, the pragmatism that we are used to by the brits, the smart, pragmatic brits, it has returned maybe a little bit, but watch this space. That smart pragmatism, interestingly, dia, do you think theresa may, she is a much stronger figure now than she was 2a hours . Definitely, but you have to see where she was coming from. On monday, things were looking pretty bad. It felt that she was trying to unite the country and bring the remainer and brexiteer colleagues together, and taking both the lot together. Today than when she actually managed to make some sort of a progression in the process, it looks very good for her. Certainly it has bought her some time if nothing else. So far she seems to be in command of her cabinet if nothing else. She was working from a very low base, she couldnt have been weaker than two was, but to have got through a deal and got over this hurdle makes her stronger. Before that, herjob was hanging by a thread on the basis of where she was on monday. Iain dale, what do you make of the idea in marks fill that the europeans were saying that what she was saying tojunker and the others, leveraging her weakness, if you dont deal with her you will have two end up dealing with Boris Johnson . Jean Claude Junker was quite anxious that her government might fall. This time yesterday, a lot of us would have thought that was quite near, but it is remarkable what a difference 24 hours makes. She is certainly in a very strong position. It was a diplomatic triumph for the Prime Minister. As dia says, to have got from monday to hear, got the dup and the Irish Government on side, and i also think, and something that i havent heard it said, i think a lot of eu governments were putting pressure on the European Commission saying, come on, do this deal. I wonderfrom a german perspective if you think thats correct, that individual governments were saying to junker, look, ease off, do this more diplomatically, we have to get a deal. Junker was taking an incredibly negative attitude prior to this week. Yes, that might be the case. But if you think back, especially talking about the money, it was the french and germans that were far more strict on this than the commission was, actually. So we will see who was behind this. What is clear is that of course there is relief, especially in berlin, there is enough things in europe happening. So lets sort this out. I think thats exactly right, once the money is sorted out, the position in paris and berlin shifted to, we just want this now dealt with. They have a huge agenda in europe that they want to get on with, including closer integration and defence. Having the brexit headache rumbling on, theyjust wanted it over. It helps by the way of the other side, in this case britain, as more or less conceded in all of the key demands. Who do you think came out of that on this, europe or theresa may . Obviously europe did, theyve got the money that they wanted. No, they havent. This is where all of the pundits said, its going to be £60 billion or £100 billion. Its not, its £35 39 billion. Borisjohnson was one of the ones talking. He said they can go whistle if it is exorbitant. And david davis said it was nonsense and other going to happen. We can argue that £35 billion is exorbitant, but it is a long way from 60. You talk about the french and germans wanted to get their money. But on the principle of ireland they had to say strong on no solid border. Do you think it was better that she pulled this off at the last minute, or. What Arlene Foster was saying today, time ran out. As in, were not very happy about this. She blinked. Who do you think blinked, iain, sorry . Arlene foster, clearly. Yes, its probably not a popular idea on this panel, but it seems to me a bit like the eu blinked as well. On monday, when theresa may said, this is not going to happen, the eu could have said, right, see you next year then. They didnt, something did happen there, they did come back to talk with her again and they worked something out. This note of full alignment, you know, originally we are talking regulatory alignment, now its follow my mid. Full alignment. No, before that it was regulatory convergence. This could not be more important because the soft brexiteers and in fact remainers are seeing in this the potential to in some ways thwart brexit and keep britain in the Single Market and the Customs Union in the names of alignment. They are assuming that sacred is the aversion to having a hard broader. What i hear is when it really comes to it, there is the choice between staying in the Single Market and the Customs Union, and palatable to brexiteers, and giving away and actually allowing the border, in the end, that is what the europeans expects quite how long do you think people might Jacob Rees Mogg will keep quiet about this in phase two . All of the people and the so called hard brexit site have been very quiet. I dont think nigel farage was right, i dont inspect them to cause them trouble. There will be people on the fringes who might. But anna soubry and nicky morgan are fully supporting the Prime Minister. Most of the brexiteers have been doing that. It is a triumph. Lets say, stephanie, we are coming to phase two, it will start in the new year, and junker. Its going to get very tough against. It will be messy, there will be now a lot of different fronts, because there will be national Member States interest coming in, theres the European Parliament now gearing up, theres a lot of different interests. Lets talk on this very subject. One key thing was in this phase one, what became very clear, you know, it was one for all and all for one. The 20 27 states together didnt flinch and they were the 27 stayed together, didnt flinch and they were more powerful for it. So what the 27 states. But when it comes to trade, the car industry and everything else, how much do you think the 27 will Stay Together . I wouldnt put too much money on fractions between the europeans. The europeans wanted the same, they wanted the money, but the second phase now is of course, you can get what . At the end of the day, there is no cherry picking. This will unify the europeans, no cherry picking for the brits. I think it will be very difficult to get a bespoke deal, but weve got to try. I think Ian Duncan Smith has written a piece for us into morras tomorrows telegraph. That is saying, as a brexiteer, he is notjubilant but he doesnt feel betrayed either. That captures the mood of most brexiteers very well. They are hanging onto this line that nothing is agreed until everything is agreed. So everything can actually. Will Iain Duncan Smith go for a norway style deal, really . What hes saying, again, sorry to repeat it, but nothing is agreed. No, they wont, this is the point. They cant stomach staying in the Single Market and Customs Union, even though the logic is that they must. I dont think so, i dont think thats right. Let me explain why, because if you leave the Single Market and the Customs Union, the eu has the pleased the border on its externalfrontier, and that means a hard border in ireland. Is there an alternative . All four parties, ireland, britain, the Northern Ireland assembly and the eu or want a frictionless border. If they all have the same game they will get there in the end. They will come out of the Customs Union, because if they dont, liam fox doesnt have a job. We cant negotiate our own trade deals. Weve got this agreement today between the eu and japan. Does anyone seriously think that were not more convergent than the japanese economy . I mean, please im afraid we have to end it. There will be a lot more conversation in the next few weeks. Thats all we have time for. Have a lovely weekend from all of us here at newsnight, good night. Goodnight. Hello and welcome to sportsday. Im gavin ramjaun. This is what we have on tonights show. The british and irish lions captain Sam Warburton has had surgery to resolve a knee injury. Its expected hell take four to six months to recover, so will miss next years six nations. Its mourinho versus guardiola. Manchester united against manchester city. We look ahead to this weekends top of the table blockbuster and the premier leagues most expensive game in history. The first against the second. The big match. We want to win because it is united. Moeen takes his finger of the ashes pulse. The england all rounder will take a breakfrom bowling, to rest up for the third test. But we start with rugby union. A blow for british and irish lions captain Sam Warburton