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Why is the British Prime Minister conducting Brexit negotiations as if he wants to slam them against the wall? Insiders assume Johnson has a smart plan: He’s waiting for a US election winner, Trump, to strike a deal with him. So he wants a tough Brexit with the EU. But Johnson disagrees.
British Prime Minister Boris Johnson denied that he would delay negotiations on a Brexit trade pact with the EU until the US elections. President Donald Trump is a Brexit supporter, while his Democratic challenger Joe Biden is more fond of the European Union. On speculation that he would announce a possible no-deal Brexit if Trump were to become president again, Johnson said, “These are two very different things.” He is happy that both sides have returned to the same table in Brexit negotiations.
“We will see what the talks bring,” the Prime Minister told reporters during a visit to the Royal Berkshire Hospital in Reading, west London. His remarks referred primarily to an Observer report over the weekend that Johnson wanted to await the outcome of the US presidential election on November 3. If Trump wins the election, Johnson would immediately sign a trade deal between the US and Britain.
According to a British government spokesman, London and Brussels are now “in an intense phase of negotiations” on a trade deal on Brexit. So far the talks had barely progressed and in the meantime London has even left the negotiating table. If an agreement is not reached, tariffs and other trade barriers threaten. The transition phase of Brexit, in which practically everything has remained the same, will end in about two months.
Hard Brexit: Study predicts tough times for Brits
Collapse of exports, inflation, wave of bankruptcies: according to a study, a tough Brexit without a trade agreement with the European Union would have many negative consequences for Great Britain. According to the study by credit insurer Euler Hermes, this has put up to 15% of UK exports to the EU at risk, threatening losses of nearly € 14 billion. “A difficult exit in addition to the Covid 19 pandemic and the already difficult economic situation would hit Britain itself very hard,” said Ana Boata, head of macroeconomics at Euler Hermes group.
In the event of an abrupt exit, another recession in Britain is expected next year, in which gross domestic product (GDP) is expected to drop by five percent. The inflation rate is likely to be above 5%, mainly due to the steep 15% increase in import prices and a 10% devaluation of the British pound against the euro. The British should put a lot more money on the table in the future for shoes, hats or umbrellas, for example. Experts at Euler Hermes predict that the prices of these products will increase by around 20%. Textiles, food and drink, alcohol, tobacco and vinegar will also cost a lot more.
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