Boris Johnson and EU Chief to Hold ‘High Level’ Virtual Summit to End Post-Brexit Deadlock

Summary

• UK Prime Minister Boris Johnson to take part in a virtual summit with EU Chief Ursula von der Leyen, scheduled for June 15
• European Council President and President of the European Parliament to join the political talks
• Negotiators agreed to ‘an intensified timetable’ for free trade agreement negotiations in July
• Boris Johnson hints plan to impose tariffs on some goods traded with the EU post Brexit

UK Prime Minister Boris Johnson will reportedly hold a ‘high-level’ virtual summit with EU Chief Ursula von der Leyen in a bid to break the deadlock in post-Brexit trade negotiations.

Chief spokesman of the Commission tweeted on Thursday that the meeting between the EU & UK has been confirmed for Monday, June 15.

(Source: Twitter)

The negotiator on both sides decided to take part in the ‘high-level’ political talks on the concern of a lack of progress post exit of Britain from the European Union. It comes after the discussion over finishing quota during last week’s fourth round of trade talks failed to break the deadlock due to European Commission losing control of talk over the opposition led by France.

As per the media report, EU’s chief negotiator Michel Barnier was told by France, the Netherland, Belgium, Portugal and Spain not to compromise on fishing rights that give ‘EU boats the majority of fish.’

In the upcoming ‘High-Level’ meeting, European Council President Charles Michel and the President of the European Parliament, David-Maria Sassoli would be joining in the negotiators.

Talks on Extension of Transition Period

The United Kingdom left European Union at midnight on January 31, 2020. It then entered the transition period in which the UK continues to follow EU rules until the end of the transition period- December 31, 2020.

Downing Street has repeatedly rejected calls coming from the businesses and critics to extend the transition period before the end of July- the current legally binding deadline for an extension request. In April, the government has even responded to an online petition stating that Prime Minister Boris Johnson has no intention of extending the transition period which ends on 31 December 2020, as per the agreement.

Both sides believe that face-to-face meetings are now needed in order to progress. There are reports stating that a Downing Street spokesman has stated that the teams have agreed to ‘an intensified timetable’ for free trade agreement negotiations in July with the focus to carry out discussions in person, if public health guidelines allow them during the coronavirus pandemic.

Will Boris Johnson Break Promises?

UK has also been accused of ‘backtracking’ on the agreed political declaration with the EU as the country plans to impose tariffs on some goods traded with the EU post-Brexit. If implemented, it could increase the prices of some everyday goods that are currently being traded tariff-free with the EU until the end of this year.

If the Free Trade Agreement (FTA) is not reached and no extension of the transition period is agreed, the UK would come under the list of ‘third party’ for EU from December 31, 2020. That means it would no more have any special benefits or trade relationship with the EU member states and would have to trade on World Trade Organisation (WTO) terms. It could also lead to border checks on UK products imposed by the EU even when there is no change in UK’s rules and regulations.

It will not be a surprise if the UK gets hit by long border queues and persistent delays if it leaves the European Union without securing a deal.

After a post-market tweet on upcoming ‘high-level’ virtual summit between Boris Johnson and EU Chief on Thursday, London Stock Exchange closed in green on Friday. FTSE 100 gained 28.48 points or 0.47% to close at 6,105.18 on 12 June 2020. FTSE 250 closed at 17,077.34 (+0.61%), FTSE 350 closed at 3,418.45 (+0.49%), and FTSE All-Share at 3,379.82 (+0.48%).

Let’s have a look at few of the top gainers on FTSE 100.

Pearson Plc (LON:PSON): Multinational publishing and education company Pearson topped on FTSE 100 after the activist investment firm Cevian Capital acquired a significant 5.40% stakes in Pearson. PSON stock has recorded a steep surge of 11.70% to close at GBX 573.00 on June 12. The market capitalisation of the company stood at £3.86 billion while the stock’s 52-week high and low are recorded at GBX 927.00 and GBX 423.50.

Melrose Industries Plc (LON:MRO): Focused on the acquisitions of manufacturing businesses Melrose Industries witnessed a surge of 6.66% in its stock to close at GBX 118.55 on June 12. The stock’s 52-week high and low are recorded at GBX 248.50 and GBX 74.36, respectively.

Carnival Plc (LON:CCL): British-American Cruise operator Carnival jumped to sit among the top risers of blue-chip on the announcement of fresh round of cancellations. Its Holland America Line has declared an extension in the pause of cruise operations along with the cancellation of some trips in Hawaii in 2021 and additional departures cancellation from the Canadian port of Vancouver this year.

CCL stock last traded at GBX 1,269.00, up 6.64%, on June 12. The stock’s 52-week high and low are recorded at GBX 4,058.00 and GBX 605.00, respectively.

Informa Plc (LON:INF): International exhibition group, Informa Plc gained investors’ attention after the company announced a return of some of its major events in China from early July to boost trading activities of exhibitors. INF stock ended higher by 6.08% to trade at GBX 460.60 on June 12 at the market close.

EasyJet Plc (LON:EZJ): Travelers’ one of the favorite low-cost British airlines EasyJet Plc gained positive momentum on stock exchange after the government eased domestic travel bans related to COVID-19 pandemic. EZJ stock spiked up 5.89% to close at GBX 805.00 on June 12. The stock’s 52-week high and low of the stock stands at GBX 1,552.00 and GBX 475.00, respectively.