The French government is expecting the U.K. to leave the European Union without a withdrawal agreement, an official in President Emmanuel Macron’s office said.
A so-called no-deal Brexit is now the central scenario for France, the official said, and will mean the immediate imposition of controls on the EU’s borders with the U.K. The comments come as British Prime Minister Boris Johnson demands the removal of the controversial Irish border backstop from the divorce deal, something the bloc has repeatedly refused to do.
The EU will also expect the British government to pay the 39 billion pounds ($47 billion) exit bill even if it leaves without an agreement, the official said. Johnson has indicated he could use the financial settlement as leverage as he seeks concessions from the bloc.
Sterling slipped to the day’s low, touching $1.2112. It reached $1.2015 on Aug. 12, the weakest level since January 2017.
The British premier meets German Chancellor Angela Merkel in Berlin Wednesday, and will have lunch with Macron in Paris Thursday to discuss Brexit. They will then meet U.S. President Donald Trump over the weekend at the Group of Seven summit in Biarritz, France.
The French official said Macron is fully aligned with Merkel, pointing to her comments this week. What’s more, EU leaders won’t be swayed by any intervention from Trump on this issue, the official added.
Johnson is within his rights to reject the backstop arrangement -- which is designed to keep the Irish border free of checks after Brexit and was agreed with Brussels by Johnson’s predecessor, Theresa May -- but without the measure, there can be no Brexit deal, the official said.
This article was provided by Bloomberg News.