Likelihood of UK’s departure from the bloc without a lucid trade deal has been mounting sharply over the recent past as Britain’s insistence on full autonomy over its state aid plans had been threatening the feasibility of a UK-EU trade deal by an end-2020 deadline, negotiators from both sides alongside diplomats had unveiled late on Friday.
In point of fact, latest uproar over a no-deal Brexit followed a Times Magazine report published earlier on the day that had quoted senior officials of Downing Street as saying that the Government of PM Johnson was anticipating a 30% to 40% chance of a Brexit trade agreement due to the deadlock over state aid programs.
Apart from that, adding that the world’s sixth-largest economy, which had been one of the worst hit G7 nations from the ongoing pandemic outbreak, had been planning to bypass Brussel’s authoritative power over the country’s state aid rules, the British source said, “The EU need to realise that what they’re asking for is at odds with what the British people voted for, twice, and not something we could accept.
” Adding further strains, a top EU official was quoted saying “There is a risk of a no-deal scenario at the end of the year. People need to be ready for that. ”
Brexit crunch looms amid lack of flexibility in talks
As beforementioned, since the latest talking point has been the state aid plans of United Kingdom, addressing to a gloomier outlook on a UK-EU trade deal by the end of 2020, one of the senior EU Diplomat said later this week, “The chances for a deal, or a no-deal, are 50/50.
There has been absolutely no movement from the British side in the talks. If this approach doesn’t change quickly, we won’t be able to negotiate a deal in time. ” In tandem, fanning the flames further, PM Johnson was quoted saying to the reporters shortly after the Times Magazine report that a lack of flexibility in EU approach had been stemming hindrances over a Canada-style solution that UK was seeking.
Following Friday’s downbeat remarks from both sides that appeared to be casting away the possibilities of a trade deal between London and Brussels, British Pound winded down the day 0.6 per cent lower against its American peer to $1.3199.