Reality check for Boris Johnson: 5 Geopolitical Effects You Need to Know

1. Lack of options for the UK

Despite the confidence Boris Johnson has brought to Brexit negotiations, Britain’s position is worse than ever, as they appear to have been backed into a corner. Among the most major economic issues that the UK will face in the case of a hard Brexit, regardless of preparations, are a weaker pound and slowing economic growth. In the event of a no-deal Brexit, the exchange rate of the pound sterling would probably fall, inflation would rise and GDP growth would be slower, according to the minutes of the British central bank’s monetary policy meeting. In its quarterly inflation report, issued on Thursday, the BoE also lowered its growth forecast for 2019 and 2020 to 1.3% from the original forecast of 1.5% and 1.6% respectively, due to Brexit uncertainties and slower global economic growth. Meanwhile, a no-deal Brexit would be even more catastrophic to the economy.

2. Merkel gives Johnson ultimatum to avoid no-deal Brexit

Angela Merkel has challenged Boris Johnson to come up with a solution to avert a no-deal Brexit “in the next 30 days” after the British PM’s meeting with the German Chancellor to discuss the situation. Merkel also suggested that the backstop was “a placeholder that will no longer be necessary” if a solution to the impasse over the Irish border can be found. The strong stance of Merkel and the EU has seemed to soften Johnson’s stance as in response to Merkel’s overture, he sought to convey a willingness to compromise in his appearance with Merkel, saying that he was “glad” to hear his German counterpart setting such a “blistering timetable”.

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