The UK government has rejected demands to scrap draft legislation which undermines the withdrawal agreement.
The EU is threatening legal action if it is changed, although the British government claims reforms are needed.
Some Conservative backbenchers are threatening to vote against it as it would damage Britain's global reputation.
Member of the UK cabinet Michael Gove says the legislation is not going anywhere:
"I made it perfectly clear to vice president Šefčovič that we would not be withdrawing this legislation. He said he understood it, but of course, he regretted it."
The news comes as yesterday Šefčovič told the British government that proposing the new Internal Market Bill had “seriously damaged trust” and that Westminster must remove the parts that violate the treaty by the end of the month.
The EU side warned that progressing the Bill in its current form would be “an extremely serious violation” of the accord and the EU “will not be shy” in taking legal action if Britain does not back down.
Emergency talks
Last night all of the 27 members sat in for emergency talks in London after the British government acknowledged it was prepared to break international law and reverse aspects of the Withdrawal Agreement.
The European Union has given the UK until the end of the month to amend its internal market bill, which it said constitutes a clear violation of last year’s Brexit divorce agreement after the UK Parliament ratified the withdrawal agreement under a year ago.
In its statement, the Commission said: "The EU does not accept the argument that the aim of the draft Bill is to protect the Good Friday (Belfast) Agreement. In fact, it is of the view that it does the opposite."
"The protocol on Ireland / Northern Ireland is an essential part of the Withdrawal Agreement. Its aim is to protect peace and stability on the island of Ireland and was the result of long, detailed and difficult negotiations between the EU and the UK."
