Pound Tumbles After Defiant Theresa May Doubles Down On Brexit Plan

Update: Theresa May’s statement is being delayed due to power issue at the prime minister’s house.

* * *

One day after EU Council president Donald Tusk poured cold over on hopes of Brexit negotiation progress, saying that “Theresa May’s Brexit plan will not work”, the UK prime minister is set to go “all in” and state that she “will not change tack” on Brexit despite her Chequers plan being rejected by EU leaders, according to the BBC.

May will shortly make a statement in Downing Street on the state of Brexit negotiations following a summit of EU leaders in Salzburg, as Brexit Secretary Dominic Raab said there was no “credible alternative” on the table from the EU at the talks.

He also expressed doubt over how serious EU leaders were about the negotiations. He told the BBC’s Politics Live: “It did not feel like the reciprocation of the statesmanlike approach that she (Mrs May) has taken”.

May says her plan for the UK and EU to share a “common rulebook” for goods, but not services, is the only credible way to avoid a hard border between Northern Ireland and the Republic of Ireland. The “Chequers” plan, as it is also known, remains opposed by many within her own party who argue it would compromise the UK’s sovereignty. And it got a cool reception at this week’s EU summit in Salzburg.

As we reported yesterday, European Council President Donald Tusk said there were some “positive elements” in Mrs May’s proposals, but he said EU leaders had agreed that the proposals needed to be redrawn: “The suggested framework for economic co-operation will not work, not least because it is undermining the single market.”

He followed it up by posting a photograph on Instagram of he and Mrs May looking at cakes with the caption: “A piece of cake, perhaps? Sorry, no cherries.”

The EU has argued that the UK cannot “cherry-pick” elements from its rulebook.

The pound, which has been whiplashed constantly by every new Brexit headline, dropped on the BBC report, sliding to session lows, and down over 100 pips.