Rabobank’s Stefan Koopman recently came out with his Brexit update while expecting the European Union (EU) to wait for the British events to unfold before allowing the requested extension.
Key quotes
“The parliamentary approval of Prime Minister Johnson’s withdrawal agreement has been withheld, which forced him to ask for an extension.”
“But it also became clear that he might have the numbers to get his deal through.”
“The appeal of Johnson’s current deal is that it doesn’t specify what sort of Brexit he eventually seeks to achieve, which allows for an unusual alliance of Labour Leave MPs and the ERG. This dynamic may change when the deal is scrutinized or even amended in the next week.”
“The government will therefore press on this week, trying to get the required legislation through the Commons at breakneck speed.”
“There is a clear risk that the current withdrawal agreement will prove to be the precursor of a hard but managed Brexit in December 2020.”
“The EU will wait with their decision on the extension to allow for events to unfold in London.”
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