Both candidates for the position of Britain’s next prime minister declared that the Northern Ireland backstop is something they will not consider in Brexit deal negotiations. These statements were given last night during a Sun debate and come after the negotiators of Brexit had one of the worst meetings since 2016 at the end of last week, according to European officials, who are opting for talks to become more hostile under the next British government.
By stating such a fact, both Boris Johnson and Jeremy Hunt are ‘edging further towards a no-deal Brexit’ according to euronews, as the EU bloc has insisted that the backstop is essential to prevent a hard border between the Republic of Ireland and the UK.
On the question of acceptance of a revised backstop, Johnson said he would not accept it and “the problem is really fundamental. It needs to come out.” On the same question, Hunt said the mechanism was “dead.”
If a backstop is put in place, the UK would remain in a customs union with the EU, but pro-Brexit campaigners argue this would mean that UK independence from the EU will be compromised.
UK Chancellor of the Exchequer Philip Hammond said, after a comment that the markets are even more convinced of a no-deal Brexit, that “it is the leadership competition and the focus that that has put on the question of our EU exit that is interesting the markets. Both candidates say they want to do a deal but the important thing is that parliament hasn’t changed, parliament is dead set against no-deal and the European Union hasn’t changed so the challenge for the new prime minister is to try to work with the same cards that the previous prime minister had but to play them in a different way that hopefully gets to an agreed deal and the UK to leave smoothly from the European Union, in an orderly Brexit that allows us to continue to work closely with our European neighbours.”
The new prime minister will be decided upon on July 23.
Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or investment advice by TeleTrade. Indiscriminate reliance on illustrative or informational materials may lead to losses.
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2021 Teletrade-DJ International Consulting Ltd
Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.