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After the UK’s Internal Market Bill sounded all alarms for the European Union (EU) policymakers, Telegraph came with news suggesting the bloc’s readiness to file a suit against its ex-neighbor. It was also confirmed that European Commission Vice-President Maroš Šefčovič will meet with the UK’s Michael Gove on Thursday to seek clarifications on the full and timely implementation of the Withdrawal Agreement.

Key quotes

Brussels calls for crisis talks as Boris Johnson is warned changes to the Withdrawal Agreement would lead to a no-deal.

The bloc believes it may be able to mount a challenge before the Government manages to pass legislation which changes part of the deal struck last year relating to Northern Ireland, which ministers admit does breach international law in a ‘very specific and limited way.’

Maros Sefcovic, Michael Gove’s counterpart on the UK-EU joint committee set up to implement Brexit, said he would hold an extraordinary meeting as soon as possible to address the bloc’s ‘strong concerns.’ That meeting will go ahead on Thursday. 

Michel Barnier, the EU’s chief negotiator, arrived in London yesterday, with sources indicating he would confront his opposite number Lord Frost over the UK’s proposals to change parts of the deal relating to Northern Ireland.

Ahead of the meeting, an EU diplomat told The Telegraph: ‘A quick reading of the relevant articles of the Internal Market Bill suggest the UK Government is launching a frontal assault on the Protocol and its obligations.  Notwithstanding the consequences for the negotiations this must be the absolute nadir of four years of negotiations by a country known as the cradle of democracy.’

FX implications

GBP/USD pays a little heed to the news, as it was mostly expected, while taking rounds to the 1.3000 threshold during the early Thursday morning in Asia.