TEHRAN, Young Journalists Club (YJC) -The United Kingdom is heading toward leaving the European Union without a divorce deal, a senior member of the Northern Irish party which props up Prime Minister Theresa May’s government said on Tuesday.
With less than five months until Britain is due to exit the EU, May has yet to clinch a divorce deal, with negotiators stuck on the so-called “backstop” arrangement that would keep open the border between British-ruled Northern Ireland and EU member Ireland regardless of what course Britain takes after Brexit.
“Looks like we’re heading for no deal,” Jeffrey Donaldson, one of 10 Democratic Unionist Party (DUP) lawmakers whose support May currently needs to get any deal passed in the British parliament, said on Twitter.
Sterling fell on the DUP remark. But it later recouped losses when Brexit Secretary Dominic Raab said “Thumbs up” when asked by a BBC reporter to describe a cabinet meeting he had just attended in London on Brexit negotiations.
The euro briefly fell to a five-month low against the British pound at 87.19 pence on Raab’s comment. Against the dollar, the British currency rallied to $1.3073.
Many business chiefs and investors fear politics could scupper a deal, thrusting both the EU and the United Kingdom into a “no-deal” Brexit that they say would weaken the West, panic financial markets and block the arteries of trade.