British Prime Minister Boris Johnson pushed Britain closer to a no-deal exit from the European Union last week, insisting he will not hold Brexit talks with EU leaders unless the bloc lifts its refusal to reopen the existing divorce deal – notably the Irish backstop.
Amid tough rhetoric from government ministers on Brexit, the pound sank to a two-year low against the euro as investors became nervous at the prospect of the UK leaving the EU at the end of October without an agreement on the terms of its departure.
Sterling fell by more than 1 percent to €1.10 and $1.22 – its lowest level against the dollar for 28 months.
On a visit to Scotland, Johnson repeated the message he has uttered many times since becoming prime minister last week. “The Withdrawal Agreement is dead, it’s got to go,” he said.
But once again he also sounded an optimistic note. “My assumption is that we can get a new deal, we are aiming for a new deal,” he said during a visit to the Faslane naval base.
Johnson said the EU must drop a “backstop” intended to keep the Irish border open. The backstop would require the United Kingdom to remain aligned to EU customs rules if a future trading relationship falls short of ensuring an open border.
“What we want to do is to make it absolutely clear that the backstop is no good, it’s dead, it’s got to go. The withdrawal agreement is dead. It’s got to go,” Johnson continued.
Pound sinks as Boris Johnson pushes UK closer to no-deal Brexit