EUROPEAN leaders have told “under pressure” Theresa May that her Government must “make up its mind” over Brexit.

Representatives from the EU27 arrived in Brussels yesterday for a major European Council summit at which phase two of discussions surrounding the UK’s departure are set to begin.

EU leaders are expected to give the go-ahead to phase two when they meet in Theresa May’s absence today – the second of the their two days meeting.

Theresa May arrived at the meeting with her authority damaged after Tory rebels inflicted a humiliating House of Commons defeat on the Government over Brexit on Wednesday. The Prime Minister has been warned she could face another defeat next week in her attempts to fix the Brexit date of March 29, 2019, into law.

The defeat means MPs and peers will be given more control over the Government’s implementation of the withdrawal agreement, as ministers will have to pass a statute, which can be amended, before it takes effect.

“It’s not good for Theresa May,” said Luxembourg Prime Minister Xavier Bettel as he arrived at the summit. “As soon as she negotiates something she will need to go back to London to get approval from the Parliament and this is not making her life easier.

“It doesn’t change anything in the agenda, it just makes life more complicated for the UK Government.”

He added: “I think we are making good progress but, if every time we announce something there is a risk that it will unravel in London, it is not very good for making concrete progress.”

His Dutch counterpart said the time had come for May to spell out what her Government wanted from its future relations with the EU.

“Having now hopefully passed the mark of phase one, I think we need from her to understand how she sees this relationship with the European Union,” Mark Rutte said.

“It is now for the UK to make up its mind.”

He added that May was “holding her cards close to her heart” over the trade deal she was seeking, but it was now “up to her and the UK Government to sketch out that future relationship.”

Rutte added: “First of all, we need to put in writing a legally binding text of what was agreed last Friday on Article 50.

“We need to learn from the UK Prime Minister what her view is on the next phase, what she wants to achieve.

“First we have to see what she wants. Does she want to stay in the single market? Does she want to stay in the customs union? Or both?”

German Chancellor Angela Merkel welcomed the opportunity to get phase two of the negotiations under way, despite May’s domestic issues, adding that “a few questions” still needed answered on the terms of the UK’s withdrawal from the EU.

French President Emmanuel Macron stressed that there was more to discuss at the summit than Brexit, with his focus firmly on the issues of EU defence and migration policy being discussed last night.

“This cake isn’t eaten yet,” said Austrian Chancellor Christian Kern, using a German expression to describe his hope that Brexit can be halted.

Kern said it was “very important” to move on to the second phase of Brexit talks at the summit, because failure to do so would cause “confusion” in financial markets and the European political world.

Donald Tusk, the European Council president, has said the “real test” of EU unity will be when the second phase of negotiations gets underway.

Tusk added that today marks the formal end of the first phase, which covered citizens’ rights, the Irish border and the divorce bill. The second will cover an implementation period and future trade deal.

Today will also see EU leaders of the remaining 27 countries welcome the launch of the permanent structured co-operation (Pesco) defence initiative.

“Both of these achievements demanded courage, realism, but above all our unity,” Tusk said.

“By the way, I have no doubt that the real test of our unity will be the second phase of the Brexit talks.”

Back home the Prime Minister’s allies have been attempting to focus attention on the positives of the summit, deflecting from the humiliation she faced on Wednesday.

Health Secretary Jeremy Hunt said the Government’s defeat in the House of Commons would not derail the Brexit process.

“I don’t think it should be a surprise that in a hung Parliament, Parliament wants to reassert its right to scrutinise the process,” Hunt said during a radio interview.

“But we should also be clear this isn’t going to slow down Brexit, it’s not going to stop Brexit.”