The victory of the conservative in the elections last week cleared expectations that a hard Brexit would occur. But Johnson presses again
The British pound falls sharply on Tuesday after Prime Minister Boris Johnson has resumed pressures on the European Union (EU) ahead of the UK’s exit from the block, launching an ultimatum over the transition period after the Brexit The currency erases this way the won last week when the conservative won the elections with absolute majority and cleared the expectations of a divorce by the brave ones.
The British pound fell 1.12% on Tuesday to change at $ 1.31 per unit – at a minimum, therefore, from just before the results of the general election on December 12. Johnson wanted to emphasize that it will not allow the closure of an agreement with the European Union after Brexit to be delayed beyond 2020.
The United Kingdom’s departure from the EU is scheduled for next January 31, date from which the British country will enter a transition period, which will last until December 2020, in which it will technically continue to be a member of the EU while trying to reach a commercial agreement on its relationship with the block after the withdrawal. By mutual agreement, this period could be extended by two more years. The scope and power of such agreement remain uncertain.
However, if Johnson clings to his campaign promise not to extend the transition period beyond the end of 2020, he would be reducing the period in which both parties have to agree from three years to 11 months.
“Our manifesto made it clear that we will not extend the implementation period and that the new draft Withdrawal Agreement Law (WAB) will legally prohibit the government from accepting any extension,” the Briton said Tuesday before Parliament.
The increases of last Friday responded precisely to the expectations that, with a solid majority in the United Kingdom, Johnson’s party would be able in the future to more easily reach an agreement with the European Union and thus more easily avoid the scenario of a Brexit hard.