The Government have set out plans in a white paper to replicate existing EU laws into equivalent UK law on Friday. The move will start the process of ‘taking back control’ from Brussels. The move will also allow the UK Government to amend laws without Parliamentary scrutiny in a bid to ensure the transition is efficient.
GBP/EUR exchange rates have fared well since the invocation of Article 50 yesterday, and have steadily improved since the beginning of the trading session.
EU accuse May of threats
Guy Verhofstadt, an MEP reacted angrily to Theresa May’s letter and accused her of threats over future security promises. The letter, which highlights the need for a quick deal to ensure security is not compromised was taken as blackmail by a number of EU officials.
In a blow to Theresa May’s ambitious outlook, Angela Merkel and Francois Holland have toughened their approach to Brexit stating that no trade talks will take place until divorce settlements are complete.
The negotiations must first clarify how we will disentangle our interlinked relationship. Only when this question is dealt with can we – hopefully soon after – begin talking about our future relationship.
– Angela Merkel, German Chancellor
Pound stages a recovery but for how long?
Theresa May’s bold vision for Brexit has improved sentiment around the Pound in the short term, but further afield how will the Pound respond to negotiations?
EU officials have already expressed the need for prioritising EU27 which could make for very difficult and painful negotiations. The Pound continues to drive forward against the Euro into the later hours of trading but it’s difficult to determine how long the trend can continue.
There are still many unknowns to the Brexit saga, such as when negotiations will take form or the overall stance from the other 27 member states. GBP/EUR will continue to be driven by economic performance and speculation which makes it difficult to predict which way exchange rates will sway.