Risk of no-deal accelerating, markets warned

By Justin Cash

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Jun 13, 2019

Britain’s former ambassador to Brussels has warned that markets are still underplaying the chances of Britain leaving the EU with no deal come October.

Speaking at the Times’ CEO Summit yesterday, Sir Ivan Rogers said that attempts to get another extension beyond the current October 31 deadline would likely be thwarted by European leaders, who do not want “to play this game very much longer”.

While the next prime minister will “very likely” run up against more barriers, the prospect of a no-deal Brexit had been misjudged by “the commentariat” as well as the rest of the nation and financial markets.

Effort to kickstart negotiations over the withdrawal deal again would be rebuffed by the EU, Rogers said.

Rogers added: “I think there is a waning appetite in European capitals from all the people I’ve talked to to play this game for very much longer. So I think the risks are still underappreciated in the market and this country that we might reach the end of this game on October 31 or very soon afterwards.”

Those sentiments were echoed by former deputy prime minister Nick Clegg, who also told the Summit that there was an “accelerated” chance of no-deal happening.

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