Brexit conversation shakes London pound and stock market

As, the London Stock Exchange, the largest in Europe, lost 0.25% and its main index, the FTSE 100, was 7,179.60 points.

All of this is happening in a context of growing concern in the UK, following a telephone conversation held this morning by the Prime Minister Boris Johnson and the German Chancellor Angela Merkel.

During this interview, a British government source revealed that Merkel had clearly explained to Johnson that, based on his new Brexit proposals submitted to Brussels last week, the possibility of reaching a consensus is now "essentially impossible".

In addition to the fall of the pound sterling, an analysis prepared by the Institute of Fiscal Studies (IFS) warned that a clear separation between London and Brussels, or even a "relatively benign", could push the UK's debt to the highest levels since the 1960s.

Merkel and Johnson discussed the new proposal presented by London to the EU last week, based on limiting certain aspects of the safeguard, intended to avoid a border in Northern Ireland after Brexit.

Under this protocol, Northern Ireland would remain in the single market and community customs union until London and Brussels reach an agreement on their future trade relations.

But the new Johnson plan proposes that Northern Ireland leave the single European market, even if its regulation on trade and goods, including agricultural and food products, would remain aligned with the EU and, by therefore, on the Republic of Ireland.