THE European Union could soon be forced to reopen Brexit negotiations amid fears a no deal Brexit could have a brutal impact on the already weak euro, finance boss Nick Twiddle has warned.
The pound, which has rallied three per cent over the course of the week, rose against the euro today, with sterling trading at €1.1573, according to Bloomberg. Nick Twiddle, Chief Operating Officer at Rakuten Securities Australia, said the “stars are aligning” for the euro to "accelerate" toward the downside. The finance expert said the dwindling currency could soon force Brussels to reopen negotiations in order to avoid a no deal Brexit.
But Mr Twiddle said the EU weak euro could mean Britain is in a much stronger Brexit negotiating position.
Speaking to CNBC, Mr Twiddle said: “Even if the UK can get its act together on a political front and come up with a deal that all parties are happy with., they’ve then got to get it through the EU.
“And the EU at the moment is staying very firm that they were happy with what they agreed to prior to the latest ongoing parts of the saga.
“I think there is one interesting side point that with the recent data that has been a lot weaker in the EU, maybe that weakens their negotiating position and that might open the door for further negotiations and a new agreement between those two bigger parties between the EU and the UK.
“But at the moment I think too much topside priced in.”
Prime Minister Theresa May's current Brexit priority is to win the support of Tory MPs and the DUP by amending the Irish backstop plan in the Withdrawal Agreement in time for the deal to be voted again on January 29.
During an address to MPs on Monday, the Prime Minister told MPs there are three key changes needed to her Brexit deal proposal.
Mrs May said: “First, we will be more flexible, open and inclusive in the future in how we engage “parliament in our approach to negotiating our future partnership with the European Union.
“Second, we will embed the strongest possible protections on workers’ rights and the environment.
“And third, we will work to identify how we can ensure that our commitment to no hard border in Northern Ireland and Ireland can be delivered in a way that commands the support of this House, and the European Union.”
The European Commission’s chief Brexit negotiator Michel Barnier welcomed British officials back to the negotiating table this week but only if they are willing to accept a closer relationship with the EU.
When asked whether he believes Britain will eventually agree to close cooperation to avoid no-deal, the Frenchman said: "I don't have a tactic. We're cooperating with the British Government.
"Things could start moving rapidly. This depends on the future relationship, like I already said. We are ready to be more ambitious if the British decide to shift their red lines, for example by remaining in a customs union, or participating in the single market. I believe there is a readiness in London for that."
