Global Economy

UK and EU strike new Brexit deal after last-ditch talks


European Commission President Jean-Claude Juncker (R) poses with British Prime Minister Boris Johnson prior to a meeting at a restaurant on September 16, 2019 in Luxembourg.

Pool | Getty Images News | Getty Images

Negotiators from the U.K. and EU have reached a draft Brexit deal in the eleventh hour of talks and ahead of a crucial EU summit on Thursday.

Sterling rose on news after the U.K. made concessions over the Irish border, an issue that had proven to be the biggest obstacle to a deal up to that point. The pound was 0.8% higher against the dollar, at $1.2929, reaching a five-month high.

U.K. Prime Minister Boris Johnson said “we have a great new Brexit deal” via Twitter. He called on British lawmakers to back the deal when it’s put before Parliament on Saturday.

Meanwhile, European Commission President Jean-Claude Juncker said the deal was a “fair and balanced” one.

Discussions to hammer out a “Withdrawal Agreement” — that will now be put before EU leaders at their summit on Thursday and Friday, and then U.K. lawmakers at the weekend — had continued late into the night Tuesday and into Wednesday.

EU leaders will have to approve the draft agreement, as will a majority of U.K. lawmakers at a possible special parliamentary summit on Saturday. The EU Parliament will also have to ratify the deal at an, as yet, unspecified date.

The clock is ticking for an agreement to be approved by both sides by Saturday. U.K. Prime Minister Boris Johnson is legally bound to request an extension to the current Brexit departure date of October 31 if no deal is reached, or rejected, by October 19.

British MPs had rejected a Brexit deal arrived at by previous Prime Minister Theresa May three times because of objections to the Irish “backstop” issue. This was designed to prevent a hard border on the island of Ireland if the U.K. and EU can’t agree a trade deal in a 21-month transition period.



READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.