No deal Brexit more likely
British PM’s threat that “no deal is better than a bad deal” would be worst case scenario for the country; EU would also be harmed by “hard Brexit”
There are seven months remaining until the United Kingdom leaves the European Union and the possibility of a deal not being reached seems increasingly likely for Brussels and London, who have both declared they are covering their backs in the event that an agreement is not brokered.
In a statement made on French radio yesterday, European Commissioner for Economic and Financial Affairs Pierre Moscovici said that “there must not necessarily” be an agreement. He also said that Brexit could be reversed, although he sees this possibility as distant given that people voted for it in a referendum.
British PM Theresa May argues that no deal is better than a bad deal and claims that her threat is “no bluff.” Last month, the British government presented a plan proposing the creation of a regulated free trade area for some goods in order to avoid a physical border in Ireland. It was a clear commitment to a soft Brexit and to maintaining links with Brussels. Although May’s government considers it the best exit plan, most of the project was rejected by Brussels because it goes against the pillars of the EU. Since then there has been talk of breaking up the negotiations.
But what would that mean for the UK? If the two parties are unable to reach a settlement by 11.00 p.m. on March 29, 2019, the date on which Brexit is due to come into force, then the transition period of twenty-one months agreed last December will be scrapped. This would greatly complicate the lives of companies. Last winter, businesses demanded May give them a period of time to adapt to the future commercial relationship with the EU.