Investing.com investing.com 24 Dec, 2020 09:00 am

On cusp of Brexit trade deal, EU and UK hash out final details By Reuters

On cusp of Brexit trade deal, EU and UK hash out final details By Reuters
On cusp of Brexit trade deal, EU and UK hash out final details

European Union flags flutter in front of the European Commission headquarters, in Brussels p By Gabriela Baczynska, Guy Faulconbridge and Elizabeth Piper BRUSSELS/LONDON (Reuters) - Britain and the European Union were on the cusp of striking a narrow trade deal on Thursday, swerving away from a chaotic finale to a Brexit split that has shaken the 70-year project to forge European unity from the ruins of World War Two.In essence, the agreement is a narrow free trade deal surrounded by other pacts on fisheries, transport, energy and cooperation in justice and policing.With an economy just one-fifth the size of the remaining EU, Johnson needs a trade deal to minimise Brexit disruption as the novel coronavirus has hurt the British economy more than it has damaged other major industrial powers.The Bank of England has said that, even with a trade deal, Britain's gross domestic product is likely to suffer a 1% hit from Brexit in the quarter of 2021.

There was no official confirmation of a deal but Johnson was expected to hold a news conference - just seven days before the UK turns its back on the EU's single market and customs union at 2300 GMT on Dec.But Europe's second-largest economy will still be quitting both the EU's single market of 450 million consumers, which late British prime minister Margaret Thatcher helped to create, and its customs union.

Read full story at investing.com