Britain headed for double whammy of spike in virus cases and no-deal Brexit

Published Mon, Jul 6, 2020 · 09:50 PM

ENGLAND'S latest round of lockdown lifting began on the weekend, with the multi-billion-pound hospitality sector re-opening its doors. Yet, amid this mini buzz of excitement, the nation could yet be heading for a "perfect storm" this Autumn - of coronavirus case spikes and a no-deal Brexit.

The growing concern about this double whammy, in a context where the Bank of England says the economy is already in its worst downturn for 300 years, is heaping pressure on UK Prime Minister Boris Johnson to secure a Brexit deal. However, the latest round of EU-UK negotiations broke up on Thursday, a day earlier than planned, with continuing significant differences between the two sides.

With big gaps still between London and Brussels, Mr Johnson is increasingly scaling down expectations of what any Brexit breakthrough could deliver. The limit of his ambitions now appears to be what EU chief negotiator Michel Barnier calls a "bare-bones" trade deal that strips out fundamental areas previously under bilateral discussion.