Before Official Deadline, Brexit Crisis Remains Unsolved – 10 October 2019

With only a few weeks left before we reach the official Brexit deadline, it’s still not clear whether the UK will leave the European Union with or without a deal. The last official move we knew is that when asked to sign a letter officially asking Brussels for an extension, thus making the Benn Law effective, a Scottish court decided to delay this move until after the European Union Summit, claiming that it couldn’t reach an official decision until after the political debate has “played out”. The European Union leaders are set to meet in October on October 17 and 18, and the court will be delivering its decision on October 22, just some days before the UK is set to leave the EU.

In his twitter account, the European Commission Chief Negotiator for the Brexit Michael Barnier said that finding an agreement with the United Kingdom is “difficult” but “possible, just after highlighting the necessity of finding a feasible solution to avoid a hard border between the Republic of Ireland and Northern Ireland.

“We will remain calm, constructive, respectful. We need real, credible solutions for the island of Ireland,” said Barnier, ” Finding an agreement is difficult, but still possible,” he added.

The Brexit Crisis is currently being fed by the British Parliament negative behavior towards Theresa May’s deal, which includes a clause that would force Northern Ireland to remain as a member of the single market given that a satisfactory solution that would avoid a hard border between Northern Ireland and the Republic of Ireland is not reached during the transition period after the Brexit becomes effective. The Northern Irish unionist party vehemently opposes this backstop clause, as it would leave Northern Ireland in a different customs agreement with the EU to the rest of the United Kingdom.

To alleviate this problem, Johnson’s government has proposed alternative solutions to this issue, however, Brussels claims that the British Government’s solutions are either not effective nor detailed enough to be considered viable.

Are the EU decisions driving the Union to a no-deal outcome?

The question is if the EU will push for another Brexit extension, given that the United Kingdom government officials still want to leave the Union by October 31, despite it’s technically obligated by Benn’s law to ask Brussels for it. The Former Foreign Secretary Jeremy Hunt said that this is a mistaken move and that by further delaying the Brexit the EU is making a no-deal outcome more likely.

“If they think this is bad – just wait until what happens after Boris wins an election,” he said, “If Boris wins, which is what the polls are saying, at the moment, and he comes back with a majority, that British government will be much less willing to compromise,” he added.

In a letter directed to his former European Union colleagues, Hunt urged Ireland to take control over the situation, as the uncompromising EU approach to the Backstop issue would just worsen the situation.

“It’s Ireland’s call now because I don’t think that the EU is going to budge unless they get that signal from Varadkar,” he added.

By 4:49 GMT the GBP/USD went up by 0.18 percent, at 1.2227. The GBP/JPY followed the trend, going up 0.23 percent and hitting the 131.44 level, while the GBP/CHF increased 0.11 percent, at 1.2166.

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