UK and EU ditch deadline and pursue Brexit talks

Short Url
Updated 14 December 2020
Follow

UK and EU ditch deadline and pursue Brexit talks

  • After a cross-Channel crisis call, the leaders agreed to ‘go the extra mile’

BRUSSELS: British and European negotiators were sent back to work Sunday after Prime Minister Boris Johnson and EU chief Ursula von der Leyen agreed to abandon their supposed make-or-break deadline.

The pair had said last week they would decide whether an agreement was possible by the end of Sunday, but after a cross-Channel crisis call they agreed to “go the extra mile.”

“We had a useful phone call this morning. We discussed the major unresolved topics,” von der Leyen said in a video message, reading out a joint statement agreed with Johnson.

“Our negotiating teams have been working day and night over recent days.”

The EU’s Michel Barnier and Britain’s David Frost held talks late on Saturday and early on Sunday. They have been alternating between the capitals but a European official said that, for the moment, they would remain in Brussels.

In their joint statement, the leaders said: “We have accordingly mandated our negotiators to continue the talks and to see whether an agreement can even at this late stage be reached.”

But speaking for himself, Johnson insisted that agreement was far from sure with less than three weeks to go until Britain leaves the EU single market at the end of the year.

“I’m afraid we’re still very far apart on some key things, but where there’s life there’s hope,” he told reporters.

“The UK certainly won’t be walking away from the talks. I still think there’s a deal to be done if our partners want to do it,” he added, four days after he and von der Leyen had said they would pull the plug on talks on Sunday if no breakthrough was in sight.

Johnson said Britain “would be as creative as we possibly can” — amid reports that the sides are nearing a deal on how to respond if their regulations diverge over time and threaten fair competition.

But Britain could not compromise on the “fundamental nature” of Brexit, controlling UK laws and fisheries, he said.

Without a trade deal, cross-Channel trade will revert to WTO rules, with tariffs driving up prices and generating paperwork for importers, and the failed negotiation could poison relations between London and Brussels for years to come.

Ireland stands to lose out more than most EU countries if trade with its larger neighbor is disrupted, and Foreign Minister Simon Coveney cautiously welcomed the reprieve for negotiations.

“Time to hold our nerve and allow the negotiators to inch progress forward, even at this late stage. Joint statement on Brexit negotiations is a good signal. A deal clearly very difficult, but possible,” he tweeted.


Gulf central banks cut rates by 25 basis points after Fed move

Updated 11 December 2025
Follow

Gulf central banks cut rates by 25 basis points after Fed move

CAIRO: Gulf central banks cut key interest rates by 25 basis points on Dec. 10, mirroring a move by the US Federal Reserve to reduce rates by a quarter of a percentage point in another divided vote. 

The Fed signalled it will likely pause further reductions in borrowing costs with new projections indicating the median policymaker view of just one quarter-percentage-point cut in 2026, the same outlook as in September. 

The oil and gas exporters of the Gulf Cooperation Council generally follow the Fed’s lead on interest rate moves as most regional currencies are pegged to the dollar. Only the Kuwaiti dinar is pegged to a basket of currencies, which includes the dollar. 

Saudi Arabia, the region’s biggest economy, cut its repurchase agreement, or repo, rate by 25 bps to 4.25 percent and its reverse repo rate to 3.75 percent.  

The UAE’s central bank reduced the base rate applied to its overnight deposit facility to 3.65 percent, effective Dec. 11. 

Gulf economies are all at varying stages of diversifying their economies away from hydrocarbons and develop non-oil sectors like real estate, tourism and manufacturing, which require billions in financing and investment. 

Lower rates are expected to stimulate economic activity and bolster non-oil growth. 

The central banks of Qatar, Bahrain, Kuwait and Oman also reduced key rates by 25 basis points.