Boris Johnson finally released his new Brexit plan and sent it to his counterparts in Brussels yesterday afternoon. The news didn’t come as any shock to the markets and GBP crosses remained relatively flat, much like the rest of the week so far.
Boris’s deal focuses mainly on the tricky Irish backstop and a way of solving the issue so he can push a deal through parliament within the next 29 days. His main proposals are
- Northern Ireland would leave the EU’s customs union alongside the rest of the UK, at the end of the transition period in 2021
- However Northern Ireland would, with the consent of politicians at Stormont, continue to apply EU legislation relating to goods
- This arrangement could in theory continue indefinitely, but consent requested every four years for this to stay in place
- Customs checks on goods traded between the UK and EU would be “decentralised”, with paperwork submitted electronically and only a “very small number” of physical checks
We will now wait on the EU’s feedback on the proposals with some papers reporting that they have already been rejected. Even if the EU agree to this new offer it will then have to come back to the UK and be passed through parliament. Initial reports are saying they are unsure if this will get the backing the PM needs.