Brexit Negotiations: Day 1 Recap
It was said that Brexit negotiations were not about “punishment” or “revenge”, but the talks between Chief European Union (EU) negotiator Michael Barnier and the UK’s Brexit Negotiator David Davis did look a lot like kicking a man while he is down.
After an initial exchange of diplomatic pleasantries, Barnier took advantage of Davis’ weaker position, and seven hours of negotiations lead to the UK backing down on all fronts.
UK Talked Out of Its Initial Demands
On day one of 730, Prime Minister Theresa May’s government gave in to EU demands to discuss divorce terms first before even considering any discussion on any future trade deal. Back in May – the month – before her disastrous general election result, May and her government were adamant that a trade deal would be discussed before a divorce settlement.
That was a mere month ago, but times have certainly changed because it took no longer than those 7 hours for the UK to back down from the “difficult woman” stance and agree to all of the EU demands.
The EU wants to discuss exit terms including the discussion on the exit fee before any discussion on trade. It was also agreed that another early priority will be guaranteeing the rights of the 4.5 million European and British nationals living in each other’s countries.
That 8th of June vote which shockingly lead to a hung parliament must be haunting Theresa May, who made the decision to call a snap election.
Market Reaction to Brexit Negotiation
Market reaction was for the GBP to fall slightly against the EUR and the USD on the initial announcement on how the first day of talks was finalized, however since then it has relatively recovered.
Indices wise, both the FTSE 100 and the DAX 30 paid little attention to the talks and maintained their bullish trend.
It’s safe to say that the score is 1 for the EU and 0 for the UK! Come back for continuous updates on Brexit negotiations.