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Brexit Deal Reached: Here's what experts have to say

Updated : October 17, 2019 18:02:37 IST

After years of negotiations, a draft deal on Brexit has been reached. This paves the way for Britain to walk away from the European Union (EU).

European Commission President Jean-Claude Juncker tweeted the deal has been reached. “Where there is a will, there is a deal - we have one! It’s a fair and balanced agreement for the EU and the UK and it is testament to our commitment to find solutions. I recommend that EU Council endorses this deal," he tweeted.

UK Prime Minister Boris Johnson tweeted, "We’ve got a great new deal that takes back control, now parliament should get Brexit done on Saturday so we can move on to other priorities like the cost of living, the NHS, violent crime and our environment."

The deal still needs approval from the UK Parliament, the EU member states and their respective parliaments. Juncker has also urged European parliament to sign off on the deal.

Jeff Chowdhry, Chairman of RLC Ventures said that the Brexit deal does remove a lot of uncertainty. “There has been two major stages in the process. The first stage is obviously a deal between the UK and EU and obviously that has been torturous over the last three and a half years. However, finally we have got something in terms of comprise that both sides are now happy with,” he said.

However, he further added that deal now needs to be ratified by the UK British Parliament. “There will be a special siting of parliament on Saturday to ratify it,” he said.

“Unfortunately, the numbers at the moment suggest that it is going to be very close in terms of whether they ratify it. The Conservative Party does not have a working majority in parliament. They have to be supported by what they call the DUP which are the MPs from Northern Ireland and they do require those people to help them to get it over the line. So, yes, there is euphoria in terms of at least the deal is there and it is being agreed, but until it goes through UK British Parliament on Saturday, the deal is not ratified,” he added.

Ayon Mukhopadhyay of IIFL Institutional Equities said that with Brexit it is never a done deal. “The biggest problem here is that the DUP, which is the Northern Irish Party. The government is not in a majority here, so ideally we do not know, and the DUP has just come out with a tweet saying that they do not support this deal. So, I do not know how the government plans to get this through on Saturday,” he said.

Michael Hewson of CMC Markets said, “We still have a long way to go. The much hated back stop appears to have gone, Boris Johnson has managed to get some concessions, he has retained a commitment to level playing fields, but he has also managed to get an agreement that Northern Ireland is part of the customs territory of the United Kingdom.”

“However, he has not got the Democratic Unions on board. They still have some significant misgivings about this deal. So, unfortunately the same mathematics that stymied Theresa May in terms of a parliamentary majority for the deal, are likely to stymie Boris Johnson’s attempt to get it through parliament,” he added.
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