Home UK: Deal or no deal? – Danske Bank
FXStreet News

UK: Deal or no deal? – Danske Bank

Analysis team of Danske Bank, points out that unlike Theresa May, UK’s Prime Minister Boris Johnson wants both the hard-core Brexiteers from the European Research Group (ERG) group and the Democratic Unionist Party (DUP) on board before signing a deal with the EU.

Key Quotes

“Remember the EU can always call an extraordinary EU summit if necessary  , so negotiations are likely to continue, even if the EU summit on Thursday-Friday does not ratify a deal.”

Even if Johnson reaches an agreement with the EU, the big uncertainty is whether he has support at home.”

The head of the ERG group Steve Baker said the Conservative MPs should  ‘trust the PM  ‘ after he met with Johnson yesterday.  However,  The Sun  reveals that the ERG is split with some members stating they will reject Johnson’s deal  .”

The DUP’s votes are still crucial but it said  ‘gaps remain  ‘ after the leaders met with Johnson last night. The DUP continues to reject a border between Great Britain and Northern Ireland in the Irish Sea. The question is whether Johnson’s pledge to give Northern Ireland money from London, EU and Dublin may persuade it.”

“In our view,  Pro-Brexit Labour MPs will probably still have reservations about voting in favour of a deal, as Johnson’s version of Brexit is harder than Theresa May’s. Pro-Brexit Labour MPs want safeguards on workers’ rights and environmental and consumer standards. Labour MPs voting for Johnson’s deal may be expelled from the party and get their whip withdrawn.”


FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.