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The Guardian has reported that the proposal that Ireland would have “two borders for four years” once the transition period ends after 2020 is likely to receive a frosty welcome in EU capitals. However, The Guardian also reports that the DUP sources have confirmed that the party is largely “content” with the proposals, which are believed to still include a lot of elements the backstop – a major concession for the party.

 

Johnson set up a high-stakes fortnight of talks with a threat that he will press ahead with a no-deal exit if the EU27 fails to engage with his plans.

The broadcaster RTÉ quoted an Irish government source saying Johnson’s deal, as reported on Tuesday evening, would not be acceptable to Dublin.

However, DUP sources have confirmed that the party is largely “content” with the proposals, which are believed to still include a lot of elements the backstop – a major concession for the party.

FX implications

The report is contrary to earlier sentiment surrounding the leaked RTE news reporting on the deal, and as ever, we can expect more conflicting headlines to make for a treacherous market in GBP.

Earlier, the Irish Foreign Minister was  being reported saying that  if there is a proposal that involves customs checks on the island of Ireland, ‘that in itself is bad faith’. Ireland’s deputy prime minister dismissed it as being a non-starter  in a tweet just before midnight where he said it was the time that the EU and Ireland had a “serious proposal”. Anyhow, for the mean time, this is more hopeful and positive for GBP.  

Irish Foreign Minister:

  • Let’s see what happens tomorrow, it is too early to say what is in the proposal.
  • ‘The reports we are hearing are concerning to put it mildly’.
  • Always rejected concept of time limit on backstop unless clear what happens after.
  • Time limited backstop is not a backstop at all.
  • Irish foreign minister Coveney: not seen UK  proposals yet – virgin media interview.
  • Does not look like basis for deal if report is correct (refers to telegraph newspaper.
  • UK parliament will act to prevent a no-deal Brexit.
  • We are not going to sign up to managed border infrastructure as a permanent arrangement on the island of Ireland.
  • The government won’t be signing up on a voluntary basis to border checks on this island.
  •  We will judge UK proposal when we see it, but it will need to have same effect as backstop.