financetom
Economy
financetom
/
Economy
/
Take it or leave it? EU offers May few options on Brexit deal
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Take it or leave it? EU offers May few options on Brexit deal
Oct 18, 2018 11:12 AM

The European Union and Britain have given themselves a few more weeks to break the deadlock in their Brexit talks but for Brussels the delay seems mainly about Prime Minister Theresa May dealing with critics back in London.

Share Market Live

NSE

An accord sketched by officials from both sides last weekend stalled because May's fractious government rejected a "backstop" insurance clause the EU wants in case future talks fail to forge a trade pact that avoids customs posts on the Irish border.

An EU offer to extend a status-quo transition period by a year to end-2021, keeping Britain in a customs union to diminish the chances of the backstop being triggered, was not enough.

EU negotiator Michel Barnier pledged at a summit to keep working "calmly and patiently". But many EU leaders see the main negotiations to be had now as being among May and her allies in London, possibly only after she gets a budget through parliament early next month. They see little scope now for the EU to move.

"We took our steps. We need to know what the other side wants - finally," said Lithuanian President Dalia Grybauskaite.

Britain is due to leave the EU on March 29, 2019, less than three years since Britons voted for an exit in a referendum.

"This is pretty much it," an EU diplomat said of the weekend offer, which included a longer transition to give time for a customs deal. "This is the deal - if ever there's to be one."

French President Emmanuel Macron noted the tricky "political balance" May faces at home -- her vital Northern Irish allies say the EU's backstop, by keeping Northern Ireland alone in the EU customs area, would break up the United Kingdom; and Brexit hardliners insist the UK must leave the EU customs union soon.

Acid Test

All governments insist, though, that they want a deal in the coming weeks that can avoid chaos when Britain leaves in March.

There are limited ways to salvage an agreement.

The EU is firmly behind Ireland. It says any "hard border" infrastructure on its frontier with the British province of the island would revive sectarian conflict. Many small EU states see the willingness of big powers to risk trade with Britain to protect Ireland as an acid test of the value of EU membership.

That limits May's scope for rejecting any backstop at all.

Her solution so far has been to offer to keep the British mainland also inside EU customs rules for a time. But the EU has rejected that because it says it appears to offer Britain too many trading advantages without deeper negotiations which it is only willing to start after Britain has left the Union.

Yet if a deal is to be struck, the focus will be finding a formulation that makes a customs border between Northern Ireland and the British mainland highly improbable and/or makes a UK-EU future customs zone more certain than Brussels now wants. And more permanent than May's hardline Brexit supports would accept.

"There are many ways to skin a cat," another EU diplomat working on the Brexit conundrum said. "But only so many -- and we have looked at all of them. So it's either the backstop or all of the United Kingdom staying inside our customs zone."

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
U.S. companies' stock purchases via buybacks, M&A to hit 6-year high in 2024, Goldman says
U.S. companies' stock purchases via buybacks, M&A to hit 6-year high in 2024, Goldman says
Mar 22, 2024
(Reuters) - U.S. companies' purchases of domestic equities through more stock buybacks and corporate acquisitions will hit a six-year high of $625 billion this year, about as much as mutual funds and pension houses will offload, Goldman Sachs said. A surge in share buybacks and continued growth in cash mergers and acquisitions (M&A) will be the primary drivers of corporate...
US Dollar Improves Early Friday Ahead of Fed Appearances, State Unemployment
US Dollar Improves Early Friday Ahead of Fed Appearances, State Unemployment
Mar 22, 2024
07:38 AM EDT, 03/22/2024 (MT Newswires) -- The US dollar rose against its major trading partners early Friday, except for a decline versus the yen, ahead of a series of appearances by Federal Reserve officials that compensate for a lack of major US data. Fed Chairman Jerome Powell is scheduled to make opening remarks at a Fed Listens conference at...
Fed Chair Powell says pandemic has had lasting effects on economy
Fed Chair Powell says pandemic has had lasting effects on economy
Mar 22, 2024
(Reuters) - Federal Reserve Chair Jerome Powell on Friday opened a Fed Listens event on how Americans are experiencing the economy, saying the pandemic has had lasting effects and that to make good policy the U.S. central bank cannot rely only on macroeconomic data but needs to hear directly from people and businesses. He did not make any remarks about the...
US Congress scrambles to pass $1.2 trillion spending bill, midnight deadline looms
US Congress scrambles to pass $1.2 trillion spending bill, midnight deadline looms
Mar 22, 2024
WASHINGTON (Reuters) - The Republican-controlled U.S. House of Representatives and Democratic-majority Senate on Friday will scramble to beat a midnight government shutdown deadline by passing a $1.2 trillion bill keeping the government funded through September. If they succeed, it will end a more-than-six-month battle over the scope of Washington's spending for the fiscal year that began Oct. 1. If they...
Copyright 2023-2026 - www.financetom.com All Rights Reserved