Brexit: A stalemate in talks on a trade deal

Negotiations are ongoing between the UK and the European Union on a Brexit follow-up trade deal. And everything indicates that they are getting more and more difficult. Another round of talks on Monday night, but the British pound is already nervous, losing more than 1% to the US dollar at noon. Bond prices are also falling.

So far, there is little evidence that the talks taking place during the European summit will be successful. The British Prime Minister, Boris Johnson, negotiates in his own style, that is, not giving up a step and insulting interlocutors at every possible opportunity. And the European Union, of which Great Britain is no longer a member, no longer needs to treat it with special attention, so the talks do not move forward. Some commentators say things are getting worse. On Monday evening, Boris Johnson is due to speak to the President of the European Commission, Ursula von der Leyen, and he himself says that it will be a turning point in these negotiations. He is close to giving an ultimatum.

At a meeting in Brussels, the EU's chief negotiator, Michel Barnier, told envoys from 27 member states that it was Boris Johnson who should take the next step as talks were not moving forward. The ball is on his side, but it has been so more than once, and the British Prime Minister has never shown even a slight tendency to compromise.

Other European leaders have no illusions that the negotiations will not end soon. The renowned restraint Simon Coveney, Ireland's Minister of Foreign Affairs, told the agency Bloombergthat he is still counting on a contract, "But it sure looks very difficult at the moment". 

Tension is rising, the pound and bonds are cheaper

Of course, he reacts to bad news Forex currency market. During the day, the British pound fell by as much as 1,4% against the US dollar. It was also cheaper in pairs with virtually all other currencies. This is the largest and fastest depreciation of the British currency in three months. UK 10-year government bond yields are also falling - by six basis points to 0,29%, an unprecedented event in recent months. 

The reports from the negotiations are very gloomy. Boris Johnson, as usual, does not mince words. He describes the European Union's demands as scandalous and announced that if it goes on like this, it will break talks on Tuesday and return to its country.

What is the dispute about? Among other things, the rules governing the matter of fisheries, conducting economic activity between the EU and Great Britain, but also many other laws already in force, which are mutually exclusive.

“The Internal Market Act contains some really important clauses that protect the integrity of the UK: they will be reinstated because they matter. As with all insurance policies, you'd rather not have to use it, but they must be " - points out Boris Johnson.

According to sources close to the negotiators, the talks are very dynamic. So it is not known when they will end, but the planned 24-hour deadline will certainly not be met. 

“Things are at the edge of the knife and this is serious. My instinct tells me it's 50-50 "- Irish Prime Minister Micheal Martin said in an interview with RTE on Sunday. - "I don't think you can be too optimistic about emerging discrepancies".