Brexit: Desperate attempts to reach customs union compromise

London

THE European Union (EU) will have to agree on a customs union compromise to prevent the UK crashing out of the union without a Brexit deal.

Both the UK and EU desperately want a deal to avoid border friction and chaos, a potential equity slide and ultimate recession. A no deal Brexit also implies that the EU would not receive most of an agreed financial settlement of £39 billion (S$71 billion) if there is no deal.

EU leaders are expected to discuss a text of agreement proposals in meetings that will take place between this Wednesday and Friday. Hopefully a preliminary accord would then be forged in November ahead of a UK parliamentary vote and confirmation.

So far, the process remains a mess, 16 months since initial negotiations began. Several UK cabinet ministers, Conservative MPS and Northern Ireland's Democratic Unionist Party (DUP) have rejected leaked proposals that Britain remain in the…