Ursula von der Leyen has highlighted the UK’s rejection of an all-encompassing punishment mechanism to keep it true to any Brexit deal with the EU as the emerging threat to an agreement, as a leaked document revealed Germany wants to draw up plans for “no deal 2.0”. Despite the most recent mood music around the negotiations being positive, the European commission president sought to draw attention to one of the less well-known areas where the two sides are at loggerheads. “Governance may sound like an issue for bureaucrats,” Von der Leyen told the European parliament. “It’s not. It is central for our businesses and our private citizens both in the UK and in the European Union. It is crucial to ensure that what has been agreed is actually done.” The EU wants a blockbuster deal with a cross-cutting dispute mechanism covering everything from trade to transport and judicial cooperation to fisheries. A clear breach of the deal could allow either side to retaliate by suspending a part of the relationship. Downing Street has opposed the governance proposal, insisting there should be a series of separate sectoral agreements. It is understood that EU officials fear that this seemingly arcane issue could prove to be the most difficult on which to find a compromise in the short time left before the transition period ends. In a sign of EU doubts over Boris Johnson’s claim on Monday that a deal could be secured in six weeks, a leaked document obtained by Reuters revealed that the German government was instead earmarking September as the key month. The government document, dated 15 June, reads: “From September, the negotiations enter a hot phase. Britain is already escalating threats in Brussels, wants to settle as much as possible in the shortest possible time and hopes to achieve last-minute success in the negotiations. “It is therefore important to preserve the unity of the 27, to continue to insist on parallel progress in all areas (overall package) and to make it clear that there will be no agreement at any price. Therefore, both national and European contingency planning would now have to start in order to be prepared for a no deal 2.0.” EU officials believe the real deadline is 31 October, after which any deal would need to be ratified by the European parliament. Von der Leyen told MEPs on Wednesday: “We are now halfway through these negotiations. But we’re definitely not halfway through the work to reach an agreement. With little time ahead of us we’ll do all in our power to reach an agreement.” Alongside dispute resolution, Von der Leyen mentioned agreement on “level playing field” conditions to ensure fair competition between British and EU businesses, access to UK fishing waters and police cooperation as the main areas of contention. There is also continued consternation in Brussels about the UK’s refusal to engage in talks on future security and defence cooperation. Echoing comments from the EU’s chief negotiator, Michel Barnier, this month when he complained that he did not understand the British position, the bloc’s ambassador to the UK, João Vale de Almeida, told Bloomberg that member states remained open on the issue if Downing Street reconsidered. “We put forward a proposal for the negotiating table, as we call them, on security and defence [and] foreign policy issues at large,” he said. “The UK has chosen not to open that table of discussion.” Von der Leyen hinted, however, at an EU compromise on fisheries by merely seeking “guarantees and predictability” for European fleet rather than the status quo. Following a videoconference meeting on Monday between Johnson and EU institution leaders including Von der Leyen, both sides committed to “intensify” talks in July and if possible reach “an early understanding on the principles underlying any agreement”. EU officials are as keen as Downing Street to secure early agreement, and the European council president, Charles Michel, will present the latest on the negotiations to leaders by video conference on Friday.