- The pound tanked 0.7% against the euro on Tuesday morning, after reports that Boris Johnson’s Brexit talks with Angela Merkel hit a dead end.
- British media outlets are reporting, citing a source close to the prime minister, that “the call with Merkel showed the EU has adopted a new position. She made clear a deal is overwhelmingly unlikely and she thinks the EU has a veto on us leaving the customs union.”
- Britain is due to leave the EU on October 31.
- View Markets Insider’s homepage for more stories.
The pound tanked on Tuesday morning, as reports emerged that Britain’s Prime Minister failed in talks with German chancellor Angela Merkel to discuss a trade deal post-Brexit.
The pound fell 0.7% against the euro, and 0.4% against the dollar. Sam Coates, deputy political editor at Sky News, was among British reporters citing a Downing Street source saying that “the call with Merkel showed the EU has adopted a new position. She made clear a deal is overwhelmingly unlikely and she thinks the EU has a veto on us leaving the customs union.”
Coates added that the source said, “Merkel said that if Germany wanted to leave the EU they can do it no problem but the UK cannot leave without leaving Northern Ireland behind in a customs union and in full alignment forever.”
The border between Ireland and Northern Ireland has been a major sticking point in Brexit negotiations, given this would be the only land border between the UK and the EU.
The source added that the chancellor said Ireland should have a veto on Northern Ireland leaving the customs union.
“If this represents a new established position, then it means a deal is essentially impossible, not just now, but ever,” the source added.
Following the news, Donald Tusk, President of the European Council, tweeted at the British Prime Minister.
“@BorisJohnson, what’s at stake is not winning some stupid blame game. At stake is the future of Europe and the UK as well as the security and interests of our people. You don’t want a deal, you don’t want an extension, you don’t want to revoke, quo vadis?”
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