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Brexit negotiations are heading for a catastrophic breakdown unless the European Union signals this week that it will allow talks to move on to trade, according to a person familiar with the U.K. government’s position.

Without a clear sign that negotiations will progress to trade and transition arrangements by December at this week’s summit of European leaders, the entire Brexit process will be in danger of collapse—and senior British ministers are losing faith in the EU’s willingness to strike a deal, the person said.

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