Brexit: Contracts Theresa and No-Deal Brexit

brexit: The warning puts further pressure on the European Research Group ERG of Conservative MPs to justify a no-deal Brexit over a compromise negotiated by the prime minister that includes an agreement on cross-border financial contracts, according to The Guardian. Theresa May is seeking a settlement that at the very least would provide the legal framework for planes to fly across the channel, medicines to be imported from the continent and trillions of pounds worth of cross-border financial contracts to be maintained. Echoing concerns from the Bank of England, the Washington-based organisation said the potential for millions of financial contracts between City banks and their counterparts across rest of Europe to collapse in the event of the UK leaving the EU without a deal was a major worry. A no-deal scenario has the potential to undermine legal contracts and disrupt trade with the result that the UK would suffer a post-Brext recession, the Treasury has argued. But it warned in a report for its annual meeting, which is staged this year in the Indonesian resort of Bali, that the failure to make progress not only had implications for the UK and eurozone economies but could also drag down the global economy. The IMF said its central forecast remained that by the end of the year Brussels and London would agree a path towards a deal on trade in goods and services. (news.financializer.com). As reported in the news.