Investing.com - Boris Johnson sent a letter to European Commission President Jean-Claude Juncker on Wednesday, outlining the U.K’s latest Brexit proposals.
The proposals put forward by Johnson aim to remove the ‘Irish backstop’ with new measures that seek to avoid the need for checks or physical infrastructure, and therefore comply with the Good Friday Agreement.
In a speech earlier on Wednesday, Johnson called on the EU to compromise with the U.K., saying that the country was ready to leave the EU without a deal in just 29 days time. Johnson also told The Sun newspaper on Tuesday that there were just 10 days left to negotiate a Brexit deal.
The letter addressed to Juncker was titled ‘A Fair and Reasonable Compromise: UK Proposals for an Amended Protocol on Ireland/Northern Ireland’.
The plan suggests a regulatory zone across Northern Ireland and the EU to avoid checks on goods. Stormont, the devolved parliament of Northern Ireland, would be required to consent to the arrangement before the end of the transition period and then every four years thereafter.
According to the proposal, Northern Ireland will remain in the UK customs territory, however a new declaration system would be introduced to ease trade flows.
According to a report, investment bank Citi said that Boris Johnson’s proposal increased the likelihood of an extension to the Oct. 31 deadline as it crossed several of the European Union’s red lines.
In a note Citi said: "The UK’s proposals seem to fall foul of established EU red lines," Citi said. "We think the prospects for a deal continue to look weak."
GBP/USD was flat following the publication of the letter, hovering around the $1.23 level. The euro was up 0.2% against the pound at 0.8898.
Poor economic data indicating a slowdown and trade war tensions pulled global stocks lower. The FTSE 100 plunged more than 3% on Wednesday afternoon, wiping out its recent recovery rally.