Prospect of £1.7bn fine looms large over PM's talks with EU leaders

Demand from European fraud watchdog underlines challenges facing Theresa May as she heads to summit on Thursday

The prospect of a 1.7bn fine imposed on the UK by the EU's fraud watchdog is expected to cast a shadow over Theresa May's summit with European leaders on Thursday.

The prime minister's spokesman rejected accusations on Wednesday from Olaf (Office Europi(C)en de Lutte Antifraude) that Britain is liable for allowing criminal gangs to flood black markets in the continent with illegal Chinese goods.