Negotiations Will Gear Up Over Brexit, Will The UK Exit In January?

Money Time |

Prime Minister Boris Johnson was victorious in the election, ending 3 years of uncertainty whether the UK will exit in January. European leaders are taking a huge sigh of relief.

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The conservative party enjoyed a huge election in 30 years, giving them a Parliamentary majority.

Even though there is still hope that Brexit will move forward, there will still be a lot of negotiations going on.

Leaders on both sides of the channel will have their hands full to quickly put together trade deals and establish their future before December 31, 2020, when the transition comes to a close.

Brussels has warned the given amount of time will not be enough, leaving a minimal deal that could be agreed upon. The only alternative, Johnson would have to break a campaign promise by extending the transition period. 

UK crashing out of the bloc

Another problem that both sides want to avoid, the UK crashing out of the bloc causing an economic crisis.

The EU leaders congratulated Johnson on his victory but have warned there’s a rough road ahead. 


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French President, Emmanuel Macron said if all sides remain loyal to each other, better relationships will come to a close.

That said, there will not be an extensive trading relationship, there will not be maximum access to the European market and substantial differences regarding climate, economic, sanitary, and social regulations.

German Chancellor Angela Merkel added they will have a competitor at the door, a country that’s no longer a member of the single market.

Johnson campaigned using the phrase “Take Back Control” in 2016. His goal, to break away from the EU’s playing field with regulatory standards and issues including rule of law and the rights of workers.

Michel Barnier, the EU chief Brexit negotiator, warned if the UK moves away from the standards, there will not be any free trade agreement.

Britain has not discussed living up to the EU’s playing field, Germany and the Netherlands have been very outspoken, insisting the UK lives up to the rules if they want to join the single market.

Experts believe, given Johnson’s stance, the UK’s relationship with the block is more than likely to become even more distant. 

Johnson has made it pretty clear he is looking for the right avenue to break away for the EU rules and regulations. 

That said, the EU’s single market may not matter to Johnson who is the process of finding trading partners that are outside the bloc, meaning the United States. 

According to Carsten Nickel, managing director for Teneo Intelligence, they want to regain sovereignty and trade with other nations.

US President Trump welcomed Johnson’s victory saying there is potential for bigger and more lucrative trade deals than Brussels can possibly offer.

At this time, it’s still uncertain what will happen if Britain decides to move away from the EU. Only time will tell and right now, most countries in the EU are holding their breath and waiting to hear what Johnson’s stance will be. 

It’s more than likely, the UK wants to reach out to other trade avenues, giving people more say in their lives.