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European Commission President Ursula von der Leyen and British Prime Minister Boris Johnson announced that discussions on a post-Brexit deal will continue. “We believe that moving forward at this stage is a responsible matter,” the two officials said in a joint statement, at a time when it appeared that there would be serious economic consequences if Britain left the European Union without a deal. And they added, “That is why our negotiators assigned us to continue discussions and see if it is possible to reach an agreement at this late stage.”
However, Johnson confirmed shortly after that the failure of the negotiations remains the “most likely” scenario, while in the previous days the course remained negative. The Conservative Party leader told British television: “I have to repeat that it is most likely now definitely that we should prepare (for Britain’s exit from the European Union) under the terms of the World Trade Organization” on 1 January.
The French Secretary of State for European Affairs, Clément Bonn, warned that an extension of the talks again “will not exceed a few days at most. Now we are in overtime.” Irish Prime Minister Michael Martin, whose country is in the front line, in the event of a no-deal exit, confirmed on the BBC that he “very much” expected to reach an agreement.
He added: “The fact that the negotiations took place late into the night is in itself an important indicator.”
Despite the intensification of the talks, differences persist between the British, who want absolute freedom on a commercial level, and the Europeans eager to protect their vast single market.
In an indication of the high level of tension, the British Ministry of Defense announced that the vessels belonging to the Royal Navy are in a state of readiness to protect the national fishing areas, since they can register tensions in case of not reaching an agreement .
Great Britain, which formally withdrew from the European Union on January 31, 2020, will leave the European single market and customs union definitively before December 31.
Failure to reach an agreement requires that the rules of the World Trade Organization govern trade between Great Britain and the European Union, with the imposition of customs duties or quotas, which can constitute a new shock to the economy, which already suffers the consequences of Covid-19.
Negotiations are stalled over three issues: European fishermen’s access to British waters, how to resolve differences in a future agreement and the guarantees that the European Union requires in London on competition matters in exchange for free access to its markets. .
Boris Johnson had previously said that the UK’s chances of concluding a trade deal with the European Union for the post-Brexit period appeared to diminish as the deadline for making a decision on continuing the talks approached. He added that he did not touch on a “great offer or a major amendment” in the European Union proposal on fisheries and fair competition rules, making the result of the lack of a post-Brexit agreement “very probable “, which requires the UK to transact in accordance with World Trade Organization rules.
On Friday, the British pound posted further losses and fell more than one percent against the dollar, following comments from Prime Minister Boris Johnson that the chances of not reaching a trade deal in the post-Brexit period are “very probable “.
The pound fell 1.2 percent to 1.3135 against the dollar, its lowest level since mid-November, while the euro rose about 1.0 percent to 92.20 pence, its highest level since September.
