U.K. reveals no-deal plan as EU talks go sour

Published on Tuesday, 8 October 2019 15:06
Written by Alex Morales, Dara Doyle, Patrick Donahue

Bloomberg

The U.K. stepped up preparations for a no-deal Brexit in three weeks’ time as negotiations with the European Union headed toward a breakdown.

In a call Tuesday morning, Boris Johnson told German Chancellor Angela Merkel a divorce agreement is essentially impossible if the EU demands Northern Ireland must stay in the bloc’s customs union. He blamed the EU’s refusal to engage with his blueprint for the likely collapse of talks. The bloc’s leaders hit back.

As the pound fell on news of the clashes, Johnson’s government published a 156-page report setting out what the country is doing - and what businesses and citizens must still do - to prepare for leaving the EU on Oct. 31 without a deal.

German officials took a dim view of what they described as Johnson’s attempt to dole out blame after his call with Merkel. Johannes Wadephul, a deputy parliamentary group leader in Merkel’s Christian Democratic Union, said the U.K. prime minister’s strategy would backfire.

“If Johnson points a finger at Merkel, then three point back at him,” Wadephul, a foreign-policy expert, said in a text message. “He doesn’t want to recognize that the so-called backstop is unavoidable.”

Brexit Party Chairman Richard Tice said he doesn’t believe the government has a “cunning plan” to avoid having to delay Brexit, and predicted the EU will decide to give the U.K. an extension that’s “somewhat longer” than the three months currently envisaged. The best thing then would be an early general election, he said.

Speaking at the Bloomberg Invest conference on Tuesday, Tice claimed that if Boris Johnson’s Conservatives agreed to an electoral pact with his party, the two combined could deliver a “thumping majority” of 60 to 100 seats in the House of Commons.

Make UK, the manufacturing lobby group, issued a strongly-worded statement saying the country isn’t ready for a no-deal Brexit, whatever Michael Gove, the Cabinet minister in charge of planning for that outcome, says.

“The more evidence that government publishes the more it confirms that we are nowhere near ready for a ‘no deal’ Brexit,” Make UK Chief Executive Officer Stephen Phipson said in a statement. “As it stands, exporters are going to be massively disadvantaged by leaving without an agreement.”

Phipson warned a no-deal departure would represent a “seismic change” and said there’s no resolution on post-Brexit arrangements for issues including the mutual recognition of goods and data transfer.

Nineteen MPs from the opposition Labour Party wrote to European Commission President Jean-Claude Juncker and European Council President Donald Tusk urging them to work “night and day, if required” to secure a deal.

“If a new deal can be brought back to the Commons in the coming weeks that avoids a no-deal Brexit and ensures greater certainty during the U.K.’s departure, we believe it serves Britain’s national interest to approve it,” The MPs wrote. “Our votes will be decisive in determining the approval of that deal.”

The intervention indicates far more Labour MPs are ready to back a Brexit deal in the House of Commons than was the case when Theresa May’s deal was last voted on in March. Then it garnered just five Labour votes.



Posted in New Britain Herald, Nation-World on Tuesday, 8 October 2019 15:06. Updated: Tuesday, 8 October 2019 15:08.