11/8/2018, 5:00 PM (Source: TeleTrader)
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Draghi: EU needs to prepare for no-deal Brexit

President of the European Central Bank Mario Draghi said on Thursday that it is very important for Brussels to prepare for a scenario where no deal is reached with London over United Kingdom's divorce from the European Union in March next year. Speaking at the Irish Parliament, Draghi reminded that Ireland, more than the rest of eurozone, can suffer negative impact from a potential no-deal Brexit due to its close trade relationship with the UK.

"As regards Brexit, with negotiations ongoing and less than five months to go until the United Kingdom’s departure from the European Union, it is essential to prepare for all possible outcomes, including a no-deal scenario. While the direct trade effects of a hard Brexit would be limited for the euro area as a whole, Ireland is more exposed due to its very close trade relations with the United Kingdom," Draghi pointed out.

UK Prime Minister Theresa May is expected to ask for more time from the European leaders to present a final Brexit agreement to her cabinet ministers, as they saw only a draft text not including the clause addressing the Irish backstop. UK media reported earlier today that the final withdrawal agreement could be published on Tuesday.

Breaking the News / SS