The European Union demands to impose a potential veto on laws and regulations that will be adopted by the UK after Brexit, The Times reported, citing government sources.

The chief EU negotiator Michel Barnier insists that London agree not to introduce any changes to the UK legislation that could distort EU trade without consulting Brussels.

The Times also notes that Barnier's colleague David Frost rejected this approach.

As Reuters notes, EU diplomats have reported that Barnier went to London to tell Frost that Britain must switch to state aid, otherwise the Brexit agreement will not be concluded.

The likelihood of the UK leaving the EU without any trade agreement has skyrocketed as London insists on full autonomy over its government aid plans.