REVEALED: European banks are preparing for HARD Brexit despite transition talks

Posted on Mar 21 2018 - 9:18pm by admin

Brexit talks have progressed rapidly in recent weeks, with David Davis and Michel Barnier hailing good progress on the transition deal during a press conference on Monday.

But eurozone banks still believe talks could fall through, resulting in a hard Brexit in March 2019 rather than a softer exit after a transition ending in December 2020.

Banks are giving organisations and businesses a June 2019 deadline to apply for eurozone licences, in a bid to encourage a relocation from the UK after Brexit.

This contrasts sharply with the Bank of England, who have a far more lenient timeline prepared.

Andreas Dombret of the Bundesbank, Germany’s central bank, said “it is too early” to presume a transition deal, which will make Brexit “less painful”, will be agreed.

She said “many issues” could derail the process and a transition period was still “not fully guaranteed”.

Mr Dombret said: “It is too early to lay back. Many issues are still to be discussed and the transitional period is still not fully guaranteed.

“The phrase that ‘nothing is agreed until everything is agreed’ still holds true.”

This comes despite a positive joint press conference by Mr Davis and Mr Barnier on Monday.

Michel Barnier said he and Mr Davis have made a “decisive step” towards agreeing a joint legal text on the UK’s EU withdrawal.

The Brussels negotiator also confirmed he would take the agreement to European Council of EU leaders for approval at Thursday’s summit.

Speaking alongside Mr Davis at a Brussels press conference, Mr Barnier said that there were still outstanding issues relating to the Irish border, adding: “We are not at the end of the road and there is a lot of work still to be done.”

Mr Barnier also announced that a transition period of “limited time” had also been agreed where EU citizens arriving in the UK will enjoy “the same rights and guarantees” as those present before Brexit.

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