The European Union and the United Kingdom have reached an agreement on Brexit.
“Where there is a will, there is a #deal - we have one!” European Union President Jean-Claude Juncker tweeted Thursday morning.
”It’s a fair and balanced agreement for the EU and the UK and it is testament to our commitment to find solutions. I recommend that #EUCO endorses this deal.”
As part of the agreement, Northern Ireland will remain part of the U.K.'s customs territory and will be an entry point into the E.U.'s single market. No customs checks will be done on the border between Ireland and Northern Ireland. The rest of the deal remains the same as agreed to in the 2018 withdrawal agreement.
British Prime Minister Boris Johnson called on Parliament to get a deal done on Saturday so that the U.K. can "move on to other priorities like the cost of living, the NHS, violent crime and our environment."
However, the Northern Irish Democratic Unionist Party, a key ally in getting a deal done, has come out against the agreement.
"As things stand, we could not support what is being suggested on customs and consent issues and there is a lack of clarity on VAT," Arlene Foster and Nigel Dodds, the party's leader and deputy, said in a statement.
"We will continue to work with the Government to try and get a sensible deal that works for Northern Ireland and protects the economic and constitutional integrity of the United Kingdom."
The opposition Labour Party leader Jeremy Corbyn said he was "unhappy" with the deal and that it was worse than the one negotiated by former Prime Minister Theresa May.
The U.K. is set to leave the EU on Oct. 31.
Still, markets celebrated the announcement.
The British pound spiked by as much as 1.2 percent to a high of 1.2990 before paring its gains. Stock markets across Europe rallied, with Britain's FTSE up 0.6 percent.
|FXB||INVESCO CCY SHS BRIT POUND STLG TR BRIT POUND STERLING SHS ETF||132.57||+0.07||+0.06%|
"If a deal is passed, then we suspect that the pound could rise further from $1.29 now to about $1.35 and a reduction in uncertainty would result in a gradual rebound in business investment boosting GDP growth from 1.3% this year to around 1.5% next year and to about 2.2% in 2020," wrote Paul Dales, chief U.K. analyst at the London-based research firm Capital Economics.