Sterling is given a lift off today’s low after Financial Times reported that the main elements of a Brexit treaty text are ready. According to EU chief Brexit negotiator Michel Barnier, the documents could be presented to the UK cabinet on Tuesday.
However, it should be noted that it’s a “known” that the “main elements” are ready. A few weeks ago, it was like 95% completed. Now it maybe 99.9%. But it’s not done until all is done. There is so far no news regarding the Irish backstop. So the piece of news is not so much news.
Also, Barnier briefed EU ministers on negotiation progress today. The post meeting statement is rather reserved. The EU statement noted:
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The Commission’s chief Brexit negotiator, Michel Barnier, informed the EU27 ministers of the situation following negotiations with the UK over the last few weeks. Michel Barnier explained that intense negotiating efforts continue, but an agreement has not been reached yet. Some key issues remain under discussion, in particular a solution to avoid a hard border between Ireland and Northern Ireland.
“In these final stages of the negotiations, ministers showed again today that we are determined to keep the unity of the EU 27. We have reconfirmed our trust in the negotiator. And we support his efforts to continue working towards a deal.”
Gernot Blümel, Austrian Federal Minister for the EU, Art, Culture and Media
During the meeting, ministers however also recalled the need to continue the work at all levels on preparations for every possible scenario.
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It doesn’t sound like there is any breakthrough.
