Brexit Bulletin: ‘Exactly as Planned’
Brexit Bulletin: ‘Exactly as Planned’
(Bloomberg) --
What’s Happening? The U.K. government wanted to move on. Wednesday’s budget will show how far events have taken them.
Brexit talks are going “exactly as planned,” Prime Minister Boris Johnson’s official spokesman said today. Despite the growing prospect of a major coronavirus outbreak, an oil-price war and slumping stock markets, talks on Britain’s future relationship with the European Union are right on track, James Slack told reporters.
“Both sides are fully aware of the timetable,” Slack said. “The talks are progressing exactly as planned, there was a constructive first round of discussions last week, and there will be a further discussion in London later this month.”
This may all be so. But Wednesday will surely reveal which parts of Johnson’s ambitious government program are more in flux. After less than a month on the job, Chancellor of the Exchequer Rishi Sunak will unveil his first budget, following a last-minute rewrite to include adequate provisions for fighting the virus.
Things to watch out for include:
- New economic forecasts from the Office for Budget Responsibility—though any projections are already likely to be out of date and virus-era revisions are expected within days.
- With markets in trouble, will Sunak announce action to support the economy—perhaps in tandem with the Bank of England?
- What level of support for the NHS, for business and for workers will Sunak unveil—and how will he pay for them?
- Will there be other on-the-hoof policy announcements, for example a rise in fuel duty made possible by slumping oil prices?
- With coronavirus concern spreading, how much focus will remain on the much-heralded “leveling-up” agenda aimed at regions outside London?
- What additional support will Sunak provide for businesses grappling with Brexit?
- And, last but not least, what will become of the U.K.’s fiscal rules, strictures put in place to ensure good budgetary health, but pledged before Brexit and before a potential viral pandemic?
Sunak has already arrived at his “whatever it takes” moment, Therese Raphael writes for Bloomberg Opinion. He may well be emboldened by the chaos unfolding around him, and by the urging of influential market players such as Mohamed El-Erian that an adventurous approach is the right way to tackle the fast-moving global challenges.
By the time British and EU negotiators reconvene in London on March 18 we could already have moved to a new phase of any one of the swirling global crises. We’ll soon find out what is going according to plan—and what is not.
Beyond Brexit
- In the U.S., the coronavirus spread from one patient in Seattle, kickstarting a national infection.
- Executives are lamenting the cancelation of business trips. But firms might soon realize they don’t need as much travel.
- Elon Muk is worried SpaceX won’t get to Mars before he dies.
- Meanwhile, Vladimir Putin is setting the stage to rule Russia until 2036, when he’ll be 83.
Brexit in Brief
‘Nightmare’ | Complex rules for accessing European funding have put organisations in Wales off applying for aid, MPs have been told.
Debt binge | Bond dealers expected to see U.K. debt issuance reach its highest level in nine years, hitting £166 billion ($214 billion) in the 2020-2021 financial year, John Ainger and Greg Ritchie report.
On the Markets | The FTSE 100 rallied on Tuesday morning before giving up its gains as market sentiment ebbed after the U.S. trading day began. The index closed at 5979.65, up 0.23% on the day but down 7.47% since Monday morning. Yields on 10-year government bonds were at 0.235%, while the pound traded at $1.295.
Enough Is Enough? | Is Johnson’s government doing enough to counter the coronavirus? Conservative lawmaker Dr Caroline Johnson joined the Bloomberg Westminster team and insisted the prime minister isn’t hiding anything from the public. Listen and subscribe to the podcast.
Vaccine Delay? | Post-Brexit red tape after the end of this year’s transition period could delay British access to a coronavirus vaccine, Politico reports.
Nothing to Amend | The resignation of Philip Rutnam, Home Secretary Priti Patel’s most senior official, is “regrettable” but doesn’t mean the conduct guide for ministers needs updating, the U.K.’s most senior civil servant said.
Want to keep up with Brexit?
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To contact the editor responsible for this story: Chris Kay at ckay5@bloomberg.net
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