UK: Tough times ahead - ING

The UK has finally triggered Article 50, sounding the starting gun on two years of Brexit negotiations notes analyst at ING.

Key Quotes

“Even before the letter reached Brussels, a leaked copy of the EU’s negotiation guidelines apparently emphasised the real difficulties ahead. The EU has been clear that it wants to prioritise exit arrangements (mainly the UK’s “exit bill”) before talking trade or transition deals. The UK wants to discuss these issues in parallel. Whatever happens, this all points to a near-term political stalemate?”

“A protracted period of uncertainty is likely to weigh on UK growth and the pound. The next big event is the EU’s Brexit summit on 29th April, where broad guidelines are expected to be agreed. Negotiations will formally begin later in May, or more likely, June.”