As the Brexit maelstrom spins ever faster, Johnson and EU leaders face a tumultuous week of reckoning that could decide whether the divorce is orderly, acrimonious or delayed yet again.
EU politicians such as Irish Foreign Minister Simon Coveney said a deal was possible and that much more work was needed. But EU diplomats were pessimistic about the chances of Johnson’s hybrid customs proposal for the Irish border riddle.
The pound was down 0.6% at $1.2568, the day’s low. Against the euro, the British currency was also 0.6% weaker at 87.76 pence. Britain will hold a budget on Nov. 6. The main sticking point from the EU side is customs. The EU is worried it would be impossible to ensure goods entering Northern Ireland do not end up in the EU and is concerned about the complexity of a system for charging tariffs on goods moved between Britain and Northern Ireland.
In a sign that the Brexit optimism which followed Johnson’s meeting with Irish Prime Minister Leo Varadkar last week may have been premature, EU diplomats now say the best chance of a deal would be to keep Northern Ireland in the EU’s customs union.
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