The Bank of England governor has rubbished a key Boris Johnson claim for avoiding economic damage after a no-deal Brexit, in a severe blow to the Tory leadership favourite.
Mr Johnson dismissed fears about crashing out of the EU by arguing the UK could still enjoy tariff-free trade under what is known as “Gatt 24”, until a permanent agreement was struck. But Mark Carney pointed out the trade law could only be invoked if there was an agreement in place – and the central point of a no-deal Brexit was the absence of a deal.
“The Gatt rules are clear. Gatt 24 applies if you have a [withdrawal] agreement, not if you’ve decided not to have an agreement, or you have been unable to come to an agreement,” he told the BBC.
Tory leadership: Contenders clash over Brexit|By Justin ParkinsonBBC News//
The Conservatives are in for a “difficult night” in Thursday’s local elections, a senior party figure has admitted.
Deputy chairwoman Helen Whately admitted the poll will be a chance to “kick the government”, amid predictions of a backlash over the delay to Brexit.
Prime Minister Theresa May requested a second delay to Britain’s departure earlier this month. The EU agreed and the UK is now due to leave on 31 October – seven months later than originally planned.
The MP for Faversham and Mid Kent said she had seen “more anger than before” on the doorstep, but stressed it was frustration with politicians in general and not just her party.
The UK’s gross budget contribution to the EU for 2019 is €17.49bn. Of that sum, Britain has already contributed €7.2bn, meaning that in a No Deal situation the EU would face a shortfall of €10.2bn this financial year. The EU now expects that amount to be paid – AIWA! NO!
Prime Minister Theresa May says she intends to return to Brussels with new ideas on the Irish backstop.
The EU has already dismissed the idea of putting a time limit on the backstop, so what other ideas have been suggested?