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Boris Johnson Throws Down The Gauntlet: No Backstop, Not Even Temporary - Printable Version

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Boris Johnson Throws Down The Gauntlet: No Backstop, Not Even Temporary - Zero Hedge - 07-29-2019

Boris Johnson Throws Down The Gauntlet: No Backstop, Not Even Temporary

<p><a href="https://moneymaven.io/mishtalk/economics/boris-johnson-throws-down-the-gauntlet-no-backstop-not-even-temporary--tgfDs5REkWAAy0MA6UVeQ/"><em>Authored by Mike Shedlock via MishTalk,</em></a></p>

<p><strong>Boris Johnson laid down the ground rules</strong> for discussion with the EU. <strong>The EU says it won't accept them.</strong></p>

<p><a data-image-external-href="" data-image-href="/s3/files/inline-images/2019-07-28_12-46-23.jpg?itok=pc0ZTbS6" data-link-option="0" href="https://www.zerohedge.com/s3/files/inline-images/2019-07-28_12-46-23.jpg?itok=pc0ZTbS6"><picture><!--[if IE 9]><video style="display: none;"><![endif]--><source srcset="https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/inline_image_desktop/public/inline-images/2019-07-28_12-46-23.jpg?itok=72fEyYe4 1x" media="all and (min-width: 1280px)" type="image/jpeg"></source><source srcset="https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/inline_image_desktop/public/inline-images/2019-07-28_12-46-23.jpg?itok=72fEyYe4 1x" media="all and (min-width: 480px)" type="image/jpeg"></source><source srcset="https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/inline_image_desktop/public/inline-images/2019-07-28_12-46-23.jpg?itok=72fEyYe4 1x, https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/inline_image_desktop/public/inline-images/2019-07-28_12-46-23.jpg?itok=72fEyYe4 2x" media="all and (min-width: 1024px)" type="image/jpeg"></source><source srcset="https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/inline_image_desktop/public/inline-images/2019-07-28_12-46-23.jpg?itok=72fEyYe4 1x" media="all and (min-width: 768px)" type="image/jpeg"></source><source srcset="https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/inline_image_mobile/public/inline-images/2019-07-28_12-46-23.jpg?itok=pc0ZTbS6 1x" type="image/jpeg"></source><!--[if IE 9]></video><![endif]--><img data-entity-type="file" data-entity-uuid="e07fb7d7-8275-42f4-824c-70992a4921ab" data-responsive-image-style="inline_images" height="308" width="500" src="https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/inline-images/2019-07-28_12-46-23.jpg" alt="" typeof="foaf:Image" /></picture></a></p>

<p>On Thursday Boris Johnson threw down the gauntlet with a call for the total abolition of the backstop. <strong>He also said the Government was “turbocharging” preparations for a no-deal break on 
Oct 31 if the EU refused to engage.</strong></p>

<p>The Telegraph asks <a href="https://www.telegraph.co.uk/politics/2019/07/25/boris-johnson-lays-gauntlet-will-eu-blink-first-pressure-builds/">Will the EU blink first as pressure builds towards 'no deal'?</a></p>

<blockquote>
<p>At a stroke, Mr Johnson appeared to sweep away the camp, nominally led by the Attorney-General Geoffrey Cox, that still believed that with a tweak - perhaps a time-limit or a unilateral exit-mechanism - the backstop could be rendered acceptable.</p>

<p>Not only did he announce the Irish backstop must be abolished, but he went further, turning the tables to set conditions for any future talks with the European Union.</p>

<p>EU diplomats and officials in Brussels have been clear that this will not happen, even if that puts the UK and EU on a collision course towards ‘no deal’ over the apparently intractable problem of the Irish border.</p>

<p>It is a wearingly familiar argument. Mr Johnson contends that the entire UK should be able to leave the EU customs union and single market while preserving a status quo border in Ireland.</p>

<p>The question now, is who will blink first as pressure builds towards an impending ‘no deal’ in the autumn?</p>

<p>Diplomats and officials were clear on Thursday that Mr Johnson’s statement, taken together with his decision to purge the Cabinet of all forces of compromise, could only be explained by a desire to create the conditions for an election.</p>

<p>The only question in European minds is whether that election comes as a result of Parliament blocking ‘no deal’ - and Mr Johnson being forced to request an extension to Article 50 - or after a ‘no deal’ has already happened. </p>
</blockquote>

<h3><u><strong>Perhaps No One Blinks</strong></u></h3>

<p><strong>Without a doubt, Johnson laid the groundwork for an early election.</strong></p>

<p>But the notion Johnson will seek and extension other than for a week or so tie up loose ends in preparation of no deal seems silly. Also silly is the notion parliament will block no deal.</p>

<p>Parliament has no such power other than to force an election. And it's now likely too late to force an election in time to kill Brexit.</p>

<p>Besides, with Labour splintered, it's likely Johnson will achieve a strong working majority in the next election.</p>

<p>Meanwhile, as long as both sides believe the other side will blink, neither will.</p>

<p><strong>It may take a crippling recession in the EU before it comes to its senses.</strong></p>

<p>Germany, EU exporters in general, will get crushed in the event of no deal.</p><img src="http://feeds.feedburner.com/~r/zerohedge/feed/~4/MEdFRVTL4mU" height="1" width="1" alt=""/>


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