Johnson Says Avoiding No-Deal Exit ‘Up to the EU’: Brexit Update
Johnson implied there may be no Brexit negotiations with the EU before the Halloween deadline.
(Bloomberg) --
Boris Johnson hinted there may be no Brexit negotiations with the European Union before the Oct. 31 deadline, and said it was in the bloc’s hands whether the U.K. leaves without an agreement. The prime minister is in Wales to make the case for his Brexit strategy, which has spooked the markets and led to a slump in the pound on fears of a no-deal split.
Key Developments:
- Boris Johnson urges EU to compromise on Brexit deal, says U.K. won’t accept Irish backstop
- His office hints there may be no talks with the EU, in a summary of Johnson’s call with Irish PM Leo Varadkar
- Prime minister visits Wales to make case for his Brexit plan
- Pound falls 0.5%
- U.K. INSIGHT: Pound Could Plunge Further 13% on No-Deal Brexit
Johnson Says Up to EU to Avoid No-Deal Brexit (4:20 p.m.)
Prime Minister Boris Johnson said it’s “up to the EU” to compromise on a Brexit deal and avoid Britain leaving the bloc without an agreement.
“If they can’t compromise, if they really can’t do it, then clearly we have to get ready for a no-deal exit, and I think we’ll do it,” Johnson said in a pooled TV clip during a trip to Wales on Tuesday. “It’s up to the EU, it’s their call.”
Johnson said he’s “not aiming for a no-deal Brexit.” But he reiterated his position that the U.K. won’t accept the backstop provision included in the withdrawal agreement negotiated by his predecessor, arguing that Parliament had already rejected it three times.
Johnson also said he’s not planning to hold an early general election.
“The people of this country have been consulted on a general election in 2015, a referendum in 2016 and they had another election in 2017,” he said. “What they want is for us to go on and deliver Brexit.”
Macron Ally Says No Deal Without Backstop (2:40 p.m.)
Nathalie Loiseau, an MEP for French President Emmanuel Macron’s En Marche Party and his former European affairs minister, said there can be no agreement between the U.K. and the EU without the Irish border backstop.
“No backstop means no deal,” Loiseau told BBC Radio 5. “The backstop is an insurance policy... we need to have this insurance policy.”
“As a member of the European Parliament, I can tell you that the European Parliament would never, never ratify a withdrawal agreement without a backstop solving the problem of the Irish border,” she said. “We don’t like a no deal, but a bad deal would be even worse, especially for the EU27.”
Varadkar Says Agreement Can’t Be Reopened (1:45 p.m.)
Irish Prime Minister Leo Varadkar made clear to the U.K.’s Boris Johnson that the backstop provision is necessary as a consequence of U.K. decisions, and that negotiations on the withdrawal agreement with the EU cannot be reopened, according to an Irish government readout after the two men spoke by phone.
While the withdrawal agreement allows for alternatives to the backstop in the future, satisfactory options have yet to be identified, Varadkar told Johnson, according to the statement. Varadkar also invited Johnson to Dublin for further talks.
Varadkar’s line is consistent with that of the EU, which has repeatedly said it won’t reopen the Brexit divorce deal it negotiated with former Prime Minister Theresa May.
Johnson Office Hints EU Talks Are Not Certain (1 p.m.)
Prime Minister Boris Johnson told his Irish counterpart Leo Varadkar the U.K. is leaving the European Union on Oct. 31 with or without an agreement, and a summary of a call between the two leaders hinted there may not be any talks with the bloc on a divorce deal before that date. Rather than a commitment to discussions, the statement, released by Johnson’s office, referred to “any negotiations which take place.”
According to the summary, Johnson told Varadkar that his preference is to leave with a deal, but it must be one that abolishes the backstop. The backstop is the provision in the Brexit deal negotiated between Brussels and Johnson’s predecessor, Theresa May, meant to ensure the border between the U.K. and Ireland remains free of checks.
Johnson told Varadkar the U.K. government will never put physical checks or physical infrastructure on the border, the statement said.
Pound Slumps on No-Deal Brexit Threat (Earlier)
Investors are driving the pound toward its worst run of losses in almost three years as concerns intensify about the risks of a no-deal Brexit.
The U.K. currency has slumped almost 3% in the past four days, as Boris Johnson repeatedly stated he’s preparing for the U.K. to leave the European Union on Oct. 31 -- without a divorce agreement if necessary.
Cairns Tells Farmers to Look East (Earlier)
Welsh Secretary Alun Cairns said there will be markets for U.K. farmers beyond the European Union if Britain leaves the bloc without a deal on Oct. 31.
“The market in Japan has just been opened to Welsh and British sheep for example, now that is a new market for us, so exports are already taking place there, but that is a significant market for which we haven’t even scratched the surface yet,” Cairns told BBC Radio 4.
Farmers are unlikely to be reassured. They fear tariffs of as much as 40% on sales of meat to the EU if there’s no agreement and former Trade Secretary Liam Fox said in February that the U.K. won’t be able to roll over the EU’s new free-trade agreement with Japan in time for Brexit.
Earlier:
--With assistance from Jessica Shankleman, Charlotte Ryan, Stuart Biggs and Thomas Penny.
To contact the reporters on this story: Joe Mayes in London at jmayes9@bloomberg.net;Peter Flanagan in Dublin at pflanagan23@bloomberg.net
To contact the editors responsible for this story: Tim Ross at tross54@bloomberg.net, Thomas Penny, Stuart Biggs
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