EU Offers UK Northern Ireland Protocol olive branch

The Telegraph has reported that ''the EU will offer Britain new concessions on the Northern Ireland Protocol, but has threatened a trade war if Boris Johnson refuses to agree a compromise.''

The British pound has been vunerable this week on such angst surrounding Brexit, so this should come as a relief to investors of Uk assets. GBP/USd is trading at 1.2490, supported on the news as well as an improved risk sentiment in markets on Tuesday. 

Meanwhie, the Telegraph wrrote that it ''understands that the European Commission will propose tweaking the bloc’s own laws to ease checks between mainland Britain and the province in order to end the long-running row over Brexit rules.''

According to sources, the Telegraph said, ''Maros Sefcovic, the EU’s chief negotiator, set out the olive branch in a call with Liz Truss after weeks of acrimony between the pair.''

''Details of their conversion emerged after the Foreign Secretary vowed on Tuesday to introduce new powers to tear up the post-Brexit solution and suspend border checks in the Irish Sea.

Despite the threat, insiders said that Mr Sefcovic was willing to agree significant compromises to virtually eliminate all customs and food safety checks between Great Britain and Northern Ireland, as he did with medicines.''