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Why Brexit talks are heading for a crisis, and what this will mean for the market?

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Given that British Prime Minister Theresa May has revealed a deadline of March 9th, 2019 for the conclusion of Brexit talks, you'd think that the negotiations would have progressed further even at this tentative stage.

Not only has progress been painfully slow, however, but negotiations between the UK and the EU could be about to reach a crisis point. This is due to the thorny issue of the Irish border, which continues to divide opinion and could well ensure that the discussions between both parties grind to a total halt.

In this article, we'll consider whether or not this point of negotiation can be amicably resolved while appraising the impact that it's likely to have on the financial markets.

 

What's the issue with the Irish border?

Not only is the UK leaving the single market when it exits the EU, but it's also proposing to depart from the customs union. Given this, and with Ireland remaining a fully fledged European member state, the Union is insisting that some kind of physical border must exist between this nation and Northern Ireland.

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