The governor of the Bank of England Andrew Bailey has told the country's banks to accelerate their plans for a no-deal Brexit, which would see the United Kingdom and European Union fail to reach a free trade deal by December 31, the Sky News broadcaster reports on Wednesday
MOSCOW (Pakistan Point News / Sputnik - 03rd June, 2020) The governor of the Bank of England Andrew Bailey has told the country's banks to accelerate their plans for a no-deal Brexit, which would see the United Kingdom and European Union fail to reach a free trade deal by December 31, the Sky News broadcaster reports on Wednesday.
According to the broadcaster, Bailey told bank executives on Tuesday that preparations must be expedited given the failure of officials from London and Brussels to make tangible process during three rounds of talks. The fourth round of negotiations between the UK and EU is taking place this week.
According to the broadcaster, severe disagreements over fishing rights have flared up during the fourth round of talks, which are scheduled to end on Friday.
The lack of progress on a free trade deal is due to Brussels' demand for a level playing field on goods and services, which prevents countries from undercutting one another, according to the UK's chief negotiator with the EU, David Frost,
UK Prime Minister Boris Johnson and other leading government ministers have continually reiterated that they will not seek an extension of the transition period, an eleven-month window for London and Brussels to conclude a range of agreements, which ends at the end of the year.
A high-level meeting of UK and EU officials is set to take place at the end of June to assess the progress made during negotiations. Brussels has said that this meeting will be crucial in deciding whether an extension to the transition period is necessary.
Former Bank of England Governor Mark Carney has previously warned that the UK economy will suffer an instant and severe shock in the event of a no-deal Brexit.
