Connect with us

Europe

EU Fears Disruptive Break With Britain

Published

on

PM Boris Johnson

A disruptive break with the bloc seems to be in the inevitable fate of Brexit. Presiding over his first cabinet meeting since the overwhelming votes and smooth re-election, PM Boris Johnson has given out a clear message of exiting the EU bloc by the end of 2020, with or without a trade deal.

There will be no extension in the transition period and Johnson made it abundantly clear. He also confirmed that Britain will move out of the EU bloc by the end of January 2020.

A smooth transition is desirable by the end of 2020. In case a free trade agreement does not come through, UK-EU trade will fall under a threat of tariffs and other obstacles. However, what is confirmed is that UK will leave the EU’s regulatory area—both its single market for goods, services, labor and capital and its customs union—“in all circumstances” by the end of 2020.

In the announcements made post the cabinet meeting, the pound fell, more than 1% to $1.31, its biggest drop in a year. Indeed, one can attribute this to mounting worries around Britain’s economy being hit as trade with the country’s largest partner is disrupted.

Meanwhile, Boris Johnson has met with the newly appointed president of the European Commission, Ursula von der Leyen. The two are said to have “agreed to work together with great energy to agree [on] a future partnership by December 2020.

Making an official statement to the media, Michael Gove, a senior government minister has stated that,” the British Parliament is due to start voting on the Brexit law that will authorize the U.K.’s departure from the EU by the end of January. Bringing that legislation to Parliament before Christmas is “a clear signal of intent” that the government intends to carry out its pledge to leave the EU.”

If the U.K. leaves the transition period with no deal, it would trade with the EU on terms laid out by the World Trade Organization, imposing high tariffs on many goods. EU will be on the receiving end, something that most fear and would not like to happen.  Many European officials are saying that all that is need is more time to settle an accord so that the EU can look at modalities of trade and so many other areas of future cooperation between the EU and Britain.

For More Exclusive NEWS:

Latest Trending NewsPolitics News USA

Trending

Sitemap | Copyright © 2018-2019 theforeigncode.com