Brexit deal seen close as EU-UK talks go down to wire

The EU and Britain looked to be close to nailing down an elusive Brexit deal late Wednesday, just in time to be submitted to a key European summit.

If a text emerges forming the basis of a legal treaty, Britain could be headed for a managed withdrawal from the European bloc it has been part of for nearly half a century.

Otherwise, the Brexit crisis that has sapped UK politics for the past three years could worsen, and British Prime Minister Boris Johnson could make good on a vow to take his country out of the EU without a deal in two weeks' time.

"I'd like to believe a deal is being finalised," French President Emmanuel Macron said alongside German Chancellor Angela Merkel in southern France as negotiators in Brussels worked frantically.

European sources warned it was not a done deal, with one stressing "talks continue" and another declaring: "There is still no white smoke." "We're almost there," the second one said, adding: "Everything is resolved except the application of VAT in Northern Ireland."