EU Shuts Door

31 January, 2019

Nakhil Mahra

After Tuesday’s votes, the PM would have been hoping to go back to the EU with renewed hope, after having as some called it ‘her best day since taking over’. Having seen Brady’s amendment pass allowing possibly some leverage to take the EU negotiators.

However that was short lived as yesterday, Michel Barnier, speaking at the European Parliament, said the Backstop is ‘part and parcel’ of the deal. Having got to this position after 18 months of negotiations and the EU saying this is the best deal possible, this opinion echoed by Macron. The backstop was one of the main reason the deal was rejected by MPs earlier this month.

After the statement, yesterday, where next for Mrs May? With all options now seemingly closing rapidly, could we see an ‘accidental no deal’? The recent gains where marginalised yesterday, with the Pound dropping gradually throughout the day. With further uncertainty predicted especially now that the EU seemingly firm on their stance, will we see the rates fall where we were at the start of the month, or even where the markets were before Christmas? If you don’t want to gamble, you could take advantage of our forward contracts and negate market risks.

The PM reportedly had a call with the EU negotiators and was told that the deal stays as it is and it was up to the UK parliament to find an outcome that suits all. With parties still split, will there be a sensible solution found? Over to you UK parliament.