EU diplomat: Chances of a successful outcome seem small at this stage
Beth Rigby, a political editor at Sky News, has tweeted a series of updates pertaining to an extraordinary meeting to be held tomorrow between the EU and GB with regards to the recent decision on GB part to override part of the Withdrawl Agreement:
EU-UK joint cttee holding extraordinary meeting tmrw - Gove/Šefčovič in person. Follows govt’s decision to override part of WA in bill. EU source says meeting to ‘better understand & analyse potential conflicts’ amid ‘very serious risk WA not implemented in event of no deal’
— Beth Rigby (@BethRigby) September 9, 2020
Asked EU source today if trade talks now at risk of being derailed? ‘There is in EU some frustration & some disbelief around text of deal. But still committed to pursuing deal to very end. Source But also says won’t surrender to threats. Approach for now = keep calm & carry on 2/
— Beth Rigby (@BethRigby) September 9, 2020
UK view. Govt source says aim to ‘deliver unfettered access/protect GFA’. Bill a safety net in case talks fail. Told hope is joint committee/wider negotiations succeed and the internal mkt bill falls away as not required 3/
— Beth Rigby (@BethRigby) September 9, 2020
EU diplomat more downbeat: Quick 1st reading of Bill suggests UK launching a frontal assault on the Protocol & its obligations. Capitals will now study the law. Should it be found to contravene WA & remain intact thru parly scrutiny, the appropriate procedures in WA will apply..
— Beth Rigby (@BethRigby) September 9, 2020
EU diplomat: We still strive to achieve an agreement as the basis for future relations. But chances of a successful outcome seem small at this stage....
— Beth Rigby (@BethRigby) September 9, 2020
EU diplomat: ‘Notwithstanding the consequences for the negotiations this must be the absolute nadir of a country which, from the Magna Carta onwards, has fought for the development of the rule of law...
— Beth Rigby (@BethRigby) September 9, 2020
The end of (the myth of) British fair play...’ ENDS
Market implications
Geopolitics is front and centre again as the coronavirus risks ebb and flow in and out of front-page news.
Markets this week have reacted mostly to US-China tensions and Brexit uncertainty which has weighed on European markets.
The current hardliner, PM Boris Johnson, who has threatened to walk away from the talks if a deal isn't done by 15 October, has caused a great deal of uncertainty in markets, weighing on the pound.
The EU responded by saying it would "do everything in [its] power to reach an agreement" with the UK, but "will be ready" for a no-deal scenario.
The exchange follows No 10 revealing that it would be introducing new legislation on customs rules in Northern Ireland, in case the negotiations fail.
This too has led to concerns from Brussels that the UK would not deliver on the withdrawal agreement, made ahead of its exit from the bloc in January.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
