The UK and the EU have agreed terms for a 21-month transition after Brexit, providing business with much stronger assurances that a cliff-edge exit will be avoided next year.
The conditional agreement reached by Michel Barnier, the EU’s chief negotiator, and David Davis, the UK’s Brexit secretary, represents one of the most valuable economic guarantees secured by the UK since Brexit talks began. Markets welcomed the news, with sterling climbing above $1.40 against the dollar to reach its highest level in three weeks.
Speaking in Brussels on Monday, Mr Barnier said the deal was a “decisive step”.
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