The problem with Theresa May thinking that Barnier's bluffing, is twofold: (1) May's team are the weaker negotiators; and (2) the UK has the weakest hand. The conclusion is that May's too weak to bluff effectively in return. The Bloomburg Politics article is worth a read.
I’m still expecting one of two extreme Brexit outcomes: (1) A very hard Brexit; or (2) a very soft Brexit.
The Conservatives look like they’ll impale themselves on Brexit, with very unpopular terms and lose the next election, ushering into the UK’s first Marxist Government. But Tony Blair is again challenging Labour for being too weak on Brexit. It’s understandable that Labour’s trying to keep its powder dry but the powder may soon pass the expiry date. Perhaps the UK will avoid a Marxist government but with another Conservative government, post Brexit, expect a massive ramp up in austerity and further cut back in public services. Tony Blair’s international think tank is a must read for summarizing the prevailing evidence.