Why hasn’t the EU pulled out of Brexit talks over Ireland?

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This was on the BBC web site on December 8 when the agreement to permit Brexit talks with the EU was reached:We now know that the UK will not be honouring this agreement. The UK says it will not join any customs union. A hard Irish border is, then, inevitable.

I am not sure why the EU is still in talks in that case. It seems illogical for it to be so. Britain has broken its word. There is no Irish deal. So what can there be to discuss in that case?