Pound to euro price: Sterling PLUMMETS as EU ‘reject’ UK’s Brexit concessions on fishing

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On top of uncertainty in Brexit discussions between the UK and EU, the pound was also likely impacted by countries across the globe shutting their doors to Britain following the emergence of a new super-contagious strain of coronavirus.

The UK had appeared to make some ground with the European Union on Monday evening over the contentious issue of fishing.

But, despite concessions made on fishing, the European Union rejected the latest move, Bloomberg News reported, citing two officials. 

At the same time of the reports, the pound fell.

At around 9.50am, 1 pound stood at 1.10 euro, before 1 pound dipped to 1.09 a euro at 10.35am.

Pound plummets as EU rejects UK concessions

Pound plummets as EU rejects UK concessions (Image: Getty)

EU rejects UK's fishing concessions

EU rejects UK’s fishing concessions (Image: Getty)

It has since slightly recovered.

It came after Monday where the pound was rocked by Brexit and the Covid crisis.

Jane Foley, head of FX strategy at Rabobank, said: “While a Brexit deal would be a huge move forward, any relief rally in the pound is likely to be tempered by the reality that many sectors will remain outside the reach of any deal and by the concerns over the impact on the economy of the current tier 4 restrictions and border closures.”

Yesterday, the UK is understood to have offered the EU a compromise on fisheries in a bid to break the current Brexit impasse.

READ MORE: Boris Johnson’s latest fishing offer as chances of deal crumble

EU Brexit negotiator Michel Barnier

EU Brexit negotiator Michel Barnier (Image: Getty)

It is believed the offer is a 35 percent reduction in the EU’s catch value with a five-year phase-in period.

This offer was much closer to the EU’s original demand of a 25 percent reduction.

But the EU has rejected the concessions on fishing, according to two officials.

Michel Barnier will update the bloc’s 27 national envoys on the latest on Brexit at 3pm today, with disagreements over fishing rights the key obstacle to a new trade deal, Brussels sources said.

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European fishing dependence on UK waters

European fishing dependence on UK waters (Image: Express)

“If we have to have an Australia-style deal, an Australia-style solution, then that is what we will achieve, and we will prosper mightily one way or the other.”

Talks are set to continue this week for two days and a half, ending on Thursday afternoon.

David Frost, the UK’s chief Brexit negotiator, said: “We have scheduled lots of time for discussions, as we should at this point in the talks.

“However, the EU insists we change our position on state aid and fisheries if there are to be substantive textual discussions on anything else.

European Commission president Ursula von der Leyen

European Commission president Ursula von der Leyen (Image: Getty)

EU officials said Mr Barnier would also speak to the European Parliament’s Brexit group, adding that cutting the value of the bloc’s catch in UK waters by 35 percent from 2021 would be too high.

Fishing rights and quotas have been one of the main reasons why talks have been gridlocked since the UK left the EU back in January.

Mr Johnson has continued to claim the UK would “prosper mightily” if the country does not secure a deal.

He said: “It’s absolutely vital that our partners understand that the UK is going to do what we need to do.

French Europe Minister Clement Beaune

French Europe Minister Clement Beaune (Image: Getty)

“If we have to have an Australia-style deal, an Australia-style solution, then that is what we will achieve, and we will prosper mightily one way or the other.”

Talks are set to continue this week for two days and a half, ending on Thursday afternoon.

David Frost, the UK’s chief Brexit negotiator, said: “We have scheduled lots of time for discussions, as we should at this point in the talks.

“However, the EU insists we change our position on state aid and fisheries if there are to be substantive textual discussions on anything else.

Fishing remains one of the key issues in talks

Fishing remains one of the key issues in talks (Image: Getty)

“We will negotiate constructively but the EU’s stance may, realistically, limit the progress we can make next week.”

French Europe Minister Clement Beaune said the “successive proposals” from the UK on fishing do not respond to EU “priorities and demands”.

He said: “There have been successive proposals from the UK sometimes on fishing, that don’t respond to European priorities and demands.

“Difficulties remain, in the fishing sector – but not only, so it would be an error of judgment and unacceptable stigmatisation to say that a few countries or a few sectors are blocking.”

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