Get 40% Off
🤯 Perficient is up a mind-blowing 53%. Our ProPicks AI saw the buying opportunity in March.Read full update

Boris Johnson's New Brexit Proposal Removes Irish Backstop

Published 02/10/2019, 15:49
Updated 02/10/2019, 16:25
© Reuters.

Investing.com - Boris Johnson sent a letter to European Commission President Jean-Claude Juncker on Wednesday, outlining the U.K’s latest Brexit proposals.

The proposals put forward by Johnson aim to remove the ‘Irish backstop’ with new measures that seek to avoid the need for checks or physical infrastructure, and therefore comply with the Good Friday Agreement.

In a speech earlier on Wednesday, Johnson called on the EU to compromise with the U.K., saying that the country was ready to leave the EU without a deal in just 29 days time. Johnson also told The Sun newspaper on Tuesday that there were just 10 days left to negotiate a Brexit deal.

The letter addressed to Juncker was titled ‘A Fair and Reasonable Compromise: UK Proposals for an Amended Protocol on Ireland/Northern Ireland’.

The plan suggests a regulatory zone across Northern Ireland and the EU to avoid checks on goods. Stormont, the devolved parliament of Northern Ireland, would be required to consent to the arrangement before the end of the transition period and then every four years thereafter.

According to the proposal, Northern Ireland will remain in the UK customs territory, however a new declaration system would be introduced to ease trade flows.

According to a report, investment bank Citi said that Boris Johnson’s proposal increased the likelihood of an extension to the Oct. 31 deadline as it crossed several of the European Union’s red lines.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

In a note Citi said: "The UK’s proposals seem to fall foul of established EU red lines," Citi said. "We think the prospects for a deal continue to look weak."

GBP/USD was flat following the publication of the letter, hovering around the $1.23 level. The euro was up 0.2% against the pound at 0.8898.

Poor economic data indicating a slowdown and trade war tensions pulled global stocks lower. The FTSE 100 plunged more than 3% on Wednesday afternoon, wiping out its recent recovery rally.

Latest comments

He likes negotiating especially with good looking women
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.