Boris Brexit gamble sparks panic as German bank hits out at PM – ‘Bearish on Sterling!’

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BORIS Johnson’s Brexit gamble to make it illegal for the UK’s departure from the EU to be extended has sparked panic in Germany, with the Deutsche Bank attacking both the Prime Minister and the Pound Sterling in scathing remarks.

Deutsche Bank raged at Mr Johnson for the proposed stunt that would aim make it against the law for the UK to be denied Brexit with another delay, a move announced today after the Prime Minister vowed to “pay back the trust” the Tories have received from the Labour heartlands in the north after they voted blue instead of red for the first time in decades. Deutsche Bank said in a shocking statement: “Overnight news that Prime Minister Johnson will seek to amend the EU Withdrawal Bill to prevent an extension of the Brexit transition period beyond the end of 2020 is a material negative. “While it does not mean a disorderly Brexit is inevitable, it does mean that the optimistic view of a pivot towards a more pragmatic Brexit policy from the government early next year won’t materialise, and this, in turn, is likely to see growing recession risks for the UK crystallise next year.

“We do not believe the market is priced for these, and turn bearish on sterling, targeting 0.90 in EUR/GBP.”

Mr Johnson is expected to seek to change the law to prevent the EU granting another delay to Brexit after both German Chancellor Angela Merkel and European Commission President Ursula von der Leyen made remarks about the bloc struggling to meet the Prime Minister’s current deadline.

MPs have been put on notice to vote as early as this Friday on his Brexit deal to crack on with the Prime Minister’s general election promise of getting the country out of the EU next month.

A revamped EU Withdrawal Agreement Bill is expected to enshrine in law his commitment to free the UK from free movement rules and multi-billion payments to Brussels by the end of next year.

A Number 10 source said last night: “Last week the public voted for a government that would get Brexit done and move this country forward – and that’s exactly what we intend to do, starting this week.

“Our manifesto made clear that we will not extend the implementation period and the new Withdrawal Agreement Bill will legally prohibit Government agreeing to any extension.”

Mr Johnson will assemble his newly rejigged Cabinet on Tuesday in their first gathering since last week’s general election to begin their effort to charge ahead with Brexit after the Tory triumph ended the parliamentary deadlock over the process.

His thumping 80-seat majority in the House of Commons means the revamped EU Withdrawal Agreement Bill is set to speed through Parliament without significant opposition.

It will likely be published towards the end of the week after the Government’s legislative programme is set out in the Queen’s Speech at the ceremonial State Opening of Parliament.

And Mr Johnson hopes to ensure the process of passing the Bill starts before the Christmas break by holding a vote on the proposal at the end of the week.

Ministers will ask the new Commons Speaker – expected to be former Labour MP Sir Lindsay Hoyle, who succeeded John Bercow shortly before the election – to break with parliamentary tradition by allowing the first and second readings of the Bill to be held on the same day.

The Prime Minister’s spokesman said: “We plan to start the process before Christmas and will do so in the proper constitutional way in discussion with the Speaker.”

Whitehall sources said the Withdrawal Bill has been redrafted to seek to outlaw any extension of the so-called “implementation period” after Brexit when the UK will remain subject to a host of EU rules beyond the current deadline of December 31, 2020.

It also comes as Deutsche Bank haemorrhaged losses after Germany narrowly escaped a recession last month. 

Thousands of jobs at the banking powerhouse were lost across Europe as a result.

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