Brexit: EU demands more British concessions to reach a balanced deal

The Brexit deal is still staring at uncertainty with the European Union asking for more concessions from the Prime Minister of United Kingdom, Boris Johnson, while the UK leader is adamant to leave the 28-nation bloc by October 31. Boris Johnson has also said that if a deal is not possible before the EU summit scheduled on October 17, Britain's divorce from the EU will take place without a deal. The complexities of the 'Backstop' considering the Irish border and the hindrance of trade is still one of the reasons why the EU leaders are pessimistic about the entire deal.

READ: British PM On Brexit: 'There's A Way Forward To Secure Our Interests'

Backstop

The European Union is concerned about the complexities involved in charging tariffs on goods moving between Britain and Northern Ireland. The EU diplomat reportedly claimed that with the hybrid customs the two sets of rules for the same goods crossing the same border, there is more possibility for fraud and it's extremely complicated to distinguish between goods heading for Northern Ireland, or further to Ireland and the single market. The European Commission head Jean-Claude Juncker claimed to an international media outlet that it's up to Britain to decide if they will ask for an extension as if PM Johnson fails to strike a deal with the EU, a law passed by his opponents obliges him to seek a delay. 

READ: Bank Of England: Financial Sector Ready For No-deal Brexit

IFS reports

A no-deal Brexit reportedly could see the government borrowing rise to approximately £100 billion a year. The Institute for Fiscal Studies (IFS) claimed that the last month's spending review shows that government borrowing was apparently on course to top £50 billion next year which is more than double what the office for Budget Responsibility was forecasting as recently as March. IFS further claimed that a mini-boom in public spending is predicted which is likely to be followed by bust as the government struggles to cope with the consequences of a smaller economy and higher debt on its funding of public services.

(With inputs from agencies)

READ: 'Brexit Is A British Domestic Crisis' Says French President Macron

READ: UK, Irish Leaders To Meet As Brexit Deal Hopes Wane