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Fitch Ratings has recently published a report commenting on the latest developments surrounding Brexit negotiations.  

Key takeaways (via Reuters)

  • UK Brexit plan faces major political, negotiating hurdles.
  • Brexit plan formulated by cabinet late last week would position UK for relatively soft exit from EU, but it faces significant challenges.
  • Resignations of David Davis and Boris Johnson highlight domestic political challenge UK govt. Faces in building support for its Brexit plan.
  • Resignations of David Davis, Boris Johnson highlight uncertainty over political cohesion, policy platform of UK govt “evident” since June 2017 election.
  • UK proposals will face a significant challenge in winning acceptance from EU.
  • Full political ramifications of resignations of David Davis as Brexit secretary and Boris Johnson as foreign secretary are “unclear”.
  • Technical challenges for Brexit plan include how to implement desired customs agreement and how to avoid a hard border in Ireland.
  • New UK proposal could still have implications for its growth via less favourable trade access to EU markets.