Von der Leyen warns of economic damage in no deal Brexit

European Commission President Ursula von der Leyen on Monday warned that ecomies of EU countries and UK are being "severely hit" by coronavirus pandemic and that failure to strike a Brexit deal could make things worse.

"We want an agreement," she told reporters in Lisbon at start of an official visit to Portugal.

"We're working hard and negotiating. I'm still convinced an agreement is possible."

Britain entered a crucial week of post-Brexit talks with European Union on Monday, rejecting EU's demand that it drop plans to breach legally binding agreement it signed on its departure from bloc.

EU has told British Prime Minister Boris Johnson to brace for a legal fight.

bloc insisted that abiding by every last detail of international treaty that regulated UK's departure on January 31 was key to maintaining trust and hopes of salvaging a rudimentary tre deal in next few weeks.

After a short meeting between two sides in Brussels, UK Brexit planning minister Michael Gove said Britain wouldn't withdraw its Internal Market Bill, which includes clauses to override parts of Brexit withdrawal treaty.

rift means that talks between two sides' tre negotiators will begin Tuesday under an omius cloud. Britain and 27-nation bloc have just weeks to strike a deal before a post-Brexit transition period runs out on December 31.

Both sides stand to suffer ecomically if y fail to find a compromise agreement.