>> Phase two of Brexit talks has officially been unlocked. European leaders are set to begin negotiations focusing on a transition period and trade. That after EU negotiators said the first phase of talks had made the progress required. Reuters' Alastair Macdonald is at the Leaders Summit in Brussels. He says phase two will raise tough questions.
>> How trade will work, how their security and defense relationship will work. How far the European Union is willing to do Britain special favors in recognition of the fact that it's a large and important trading partner. And how far they will resist. Demands from London for special terms in order to maintain the cohesion of their own union.
>> It's a success for British Prime Minister Theresa May who had arrived in Brussels on the back of a parliamentary defeat served up by members of her own party.>>
Who voted late Wednesday to change May's own blueprint for Brexit. Now Parliament gets the last word on any final deal between the government and EU.
It raised questions about whether it would be a blow to May's authority as a negotiator, already hit by the loss of her majority in June's election. Instead her Brexit efforts were applauded by her European colleagues at a dinner on Thursday.>> The European Union wants an orderly Brexit, not chaos.
And that's the reason why they are now backing Theresa May as the woman who can deliver that and prevent the kind of chaotic divorce that could disrupt not just the British economy, but the wider economy across the continent.>> The next phase of the talks is expected to be a real test of European Union unity.
>> European Council President Donald Tusk warned on Thursday, success can only come if the 27 remaining EU countries stick together.