A hard Brexit is looming for the UK. Not only Angela Merkel has said no to the special UK EU access. Today, Jean-Claude Juncker stated that Europe has to take a firm stance against the UK. What are the consequences for the UK?
7 October, AtoZForex – Jean-Claude Juncker, President of the European Commission, stated that the EU has to take a strong stance against the UK during the Brexit discussions. If Britain wants access to the EU single market it has to respect the fundamental values of the Eurozone, which compromises free movement of goods, services, people, and capital.
A hard Brexit is looming? EU needs to be intransigent
On Sunday, Theresa May, the Prime Minister of the UK commented that she wants to have Brexit negotiations with Brussels until the end of March. Theresa May also noted that she wanted an exit deal that would provide the UK with “maximum freedom” to operate in the Europe’s single market, whilst, controlling immigration. However, the EU leaders think differently and mentioned that if Great Britain would like to gain free access the internal market of the EU, it has to respect all the rules and the liberties the EU bloc implemented. During speech in Paris, Jean-Claude stated:
“You can’t have one foot in and one foot out. On this point, we need to be intransigent. I see the maneuvering .”
Due to these opposing views a hard Brexit is looming, and GBP has come under pressure. During the early Asian session today, the Sterling dropped as much as 6%.
Comments of EU officials: Britain would have to pay a price
Furthermore, Francois Hollande, President of France, said that Britain would have to pay “a price” for its decision to exit the EU. Angela Merkel, the Chancellor of Germany, also supported the view of EU officials stating that states who do not value the free movement of people would not get any special rights.
As opposed to the remarks of Juncker and Merkel, some British politicians said that the UK will manage to negotiate close trade relationship with the EU and wouldn’t have to permit free movement of people into Britain after it exits the EU.
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