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The Tory MEPs after the 2015 GE withdrew from the Centre Right coallition within the European Parliament and joined a grouping which includes the German AfD MEPs. Merkel will never grant any concessions to May, or anyother Tory leader because of this.
I also doubt that Barnier is willing to split out any of the Four Freedoms, but. Corbyn-led UK government could have a different interpretation of how to implement them.
Looks like the referendum choice that Corbyn will back is to accept May's deal or to reject it.
Given that the "deal" at this stage is the withdrawal agreement (citizens rights, financial settlement. backstop), and that without it we have no transition then it's no choice - it's between fragile stability (planes still flying etc) or total chaos. Who could vote for chaos?
Anyway, Labour are clearly hoping that if the people vote no-deal then:
a) A GE would be announced
b) The EU would extend A50 to allow for the GE
c) Corbyn would win said GE
d) And could then cherry-pick the single market aspects he wants in a way that the EU refused when it was the Tories asking