Brexit: UK and European Union prepare for no-deal exit

It is likely that United Kingdom leave hima European Union (EU) without a commercial agreement in just three weeks, the British Prime Minister said today, Boris Johnson, and the president of the European Commission, Ursula von der Leyen.

EUnited Kingdom leave him EU in January, but it will always be a informal member until December 31st, when I finish a transition period dinsisting that he remained within the single market and the Union customs union.

Both parties say they want alcanotconclude agreements that cover almost $ 1 trillion in annual tradeBut the negotiations get bogged down. Von der Leyen told bloc leaders that it is more likely that UK leaves EU orbit without trade deal rather than deal, said an official.

“It seems very, very likely that we’ll have to come up with a solution that I think will be wonderful for him. United Kingdom, we can do exactly what we want from January 1, obviously that will be different from what we wanted to accomplish, ”Johnson told reporters. to see it, ”he added.

Johnson and von der Leyen gave the negotiators’ time until Sunday evening to break the deadlock over fishing rights and enable the UK to deal with the consequences if it departs from the bloc’s rules in the future.

In the event of a no-deal exit, the UK will abruptly lose duty-free, quota-free access to the single European market of 450 million consumers.

Without agreement?

A senior EU official said EU leaders on Monday rejected a proposal to Johnson to set up a conference call on the Brexi with the German Chancellor, Angela Merkel, and the French president, Emmanuel Macron.

A Brexit without trade agreement would harm Northern European economies, would have repercussions on Financial markets, would make the task difficult I cross the borders and sow chaos in delicate supply chains extending across Europe and beyond.

While some European diplomats have interpreted Johnson’s rhetoric as an act with which he seeks to accept and please Brexit supporters in his country, British officials say London cannot accept EU demands and they warn that it is possible that there is no agreement.

Meanwhile, the governor ofl Bank of EnglandAndrew Bailey said the central bank had done everything possible to mitigate the risks of an exit from the European Union on December 31, and that it was ready to deal with any disruption in financial markets.

“Who have the Bank of England in your arsenal, so to speak? The answer is a lot. We will use our tools, as we did in March, in case we were in this situation, ”Bailey said at a press conference.

The Bank of England increased liquidity auctions in the market at the start of the pandemic, as well as cut interest rates to historically low levels and relaunched its asset purchase program.

Market shocks would not threaten financial stability, but Bailey warned that some EU customers may not have access to UK financial services because the EU had failed to take mitigating action.