24/12/2020

Brexit deal imminent


GBP

It has been some 1645 days since Britain voted to leave the EU on the 23rd June 2016. We may now only be a few hours away from moving on from the Brexit saga. Yesterday, multiple reports from both EU and UK parties indicated that a Brexit was ‘done’. As a result, sterling strengthened yesterday afternoon and continues the trend this morning. GBP/EUR is trading over 1.11 and cable trading over 1.35. Sources suggest Boris Johnson held a late night conference with his senior ministers to brief them of the news. Johnson is expected to speak to Ursula Von Der Leyen this morning followed by a press conference addressing the nation. If this announcement comes today, Westminster will be recalled next week, so MP’s can vote on the deal. EU counterparts are expected to agree ‘provisional application’ of the deal January 1st.

But how was a deal agreed in the end? Sources close to negotiations suggest Britain made major concessions on fisheries, however this has been strongly denied by London. Level playing field was a solved by setting up a review panel who would decide if either side had experienced shortfalls due to the other. If a shortfall was experienced, the panel has the right to issue sanctions. However the deal was agreed, it will come as a relief to the thousands of businesses who have been on edge ever since Brexit was announced. The deal will mean these businesses can continue to trade in the EU without experiencing any tariffs on goods. Britons, will lose the right to freely travel and work across the EU. These old measures will be replaced by more complex and restrictive arrangements. All eyes are now on number 10 as we await the news.

Key announcements

  • All day – Brexit announcement

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