Find out what Michel Barnier promised on his recent visit to the Irish border and what this means for future brexit negotiations and strength of the Pound.
Yesterday EU chief negotiator Michel Barnier visited Dundalk and Newry where he promised to work “day and night” for a solution to the Irish border. Brexit Secretary David Davis agreed with Barnier on the “need to move quickly” and said the U.K. has put forward proposals. The U.K.’s preferred solution – known as Option A – is to use a sweeping new free-trade agreement and customs deal with the EU to avoid the need for tariffs and goods checks at the border between the Irish Republic and Northern Ireland. If this can’t be agreed in time, Option B is to use technological solutions to minimise checks on goods at the border. The EU insists there must be a “backstop” in case the U.K.’s plans don’t work. However, the backstop proposed by the EU so far is unacceptable to the U.K., as it means creating a border between Northern Ireland and the rest of the U.K. Key meetings this week are the Brexit inner Cabinet meeting on Wednesday and Brexit talks in Brussels Wednesday- Friday. Any hint of positive development this week will strengthen the Pound. We’re watching closely.
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