You know the drill by now. This may be significant and a deal on the way.

Or this may not be significant and a deal not on the way.

Take your pick.
Also significant. Or not. A deal. Or a no-deal. Or he wants to wish us all a merry Christmas.
One thing though - be careful about leader level calls helping to unlock a situation. They could be for negotiators to demonstrate that their political instructions are to go no further, or to present politically a new proposal. It could be good news as well. We still wait.
If the UK and EU want a deal that looks roughly like the one we've known about since June there will be a deal. If they don't, there won't. The rest, as they say, is noise.
And somewhat less flippantly, you would expect a last round of briefings in the EU, along the lines of, here are the UK's final offers, here is where they might go one final step, where we might, hence we are headed deal / no-deal on that basis.
Never got the strand of Brexit twitter which puts every event into proving there either is or isn't about to be a UK-EU deal. If as looks possible the UK has quietly folded on all issues of principle (sorry, both sides have made concessions) then a deal looks likely. If not, not.
Those UK red lines - no trade checks between Northern Ireland and Great Britain (gone), no level playing field beyond EU-Canada (apparently gone), no linkage between trade preferences and fishing (apparently gone). Yes the EU will compromise detail. But not principle.
Seeing a few ERG MPs tweeting about the importance of fish today... think they're expecting the PM is about to abandon the hardline positions, go for the FTA, and also in so doing cement the Withdrawal Agreement they didn't particularly like. For them the FTA will not be a win.

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More from @DavidHenigUK

23 Dec
So, deal or no-deal? I'm afraid it looks gloomy. Too many outstanding issues, a political context that is not conducive to compromise, and a tunnel leaking like mad. Quite possibly forming between them a vicious cycle. So, is this it? I suspect not... 1/n
Recall, this UK-EU negotiation is attempting to put in place an agreement unusually extensive (haulage, aviation, security, as well as trade) in a record timescale (9 months start to implementation) at a time of pandemic. That was always optimistic. 2/
A process driven EU against a naive yet overconfident UK in a short timeframe was also never going to be easy. In particular the UK's sole evident negotiating strategy, to say we'll walk away, is still in overdrive, making compromise harder. 3/
Read 10 tweets
22 Dec
Think we knew this already. Question is whether there is a next UK offer which is acceptable, and what the package would be around this. That's what will presumably be discussed in the next 24 hours.
Worth recalling - we don't know the detail of what the UK offered on fish, the conditionality, phasing and more. You would think the EU has now set up the opportunity for a final UK offer, but as ever hard to tell. Big 24 hours to come though.
Sure enough. The UK offer was not as generous as reported. No-deal chances just rose again.
Read 5 tweets
22 Dec
Currently playing...
There appear to be oddly few tracks or whole albums with the word 'deal' in them. Recommendations welcome
Thanks for all the suggestions, moved onto this.
Read 4 tweets
22 Dec
The classic small town / global trade story that few seem to understand and fewer (none?) have an answer for. What happens when a global multinational shuts the main manufacturing plant in a small town? ft.com/content/c85a6b…
Approximately 70-80% of trade is driven by global supply chains, with large companies in all sectors making key decisions with far reaching consequences. How governments influence such decisions is not entirely clear. But the impacts we see as outbursts of frustration and more.
The likelihood is we will see continued closures of manufacturing plants in the UK in years to come, as barriers to EU trade rise and we are too far from potential growth markets in Asia. Our role as specialist services supplier may sustain, but that's not rebalancing.
Read 7 tweets
22 Dec
Joined up thinking latest. A government determined to make a sovereignty point about fishing no matter the implications (and having refused to trade off fishing for market access elsewhere).
But fishing is what Brexit means innit? Actually every time someone pops up here to tell me what Brexit means it always seems to mean something different. Suppose that's the beauty of a notion of 'control', means lots of things to lots of different people.
Anyway that decision not to extend and to take talks to the wire really worked to take the pressure off the UK... 🤦‍♂️

Fashionable opinion is still that the PM folds. That he sees sense. Might happen. It just hasn't so far.
Read 8 tweets
21 Dec
Seems broadly sensible as far as I can tell. But can't believe something like this has not already been considered by both sides. Suspect therefore the issue is more that there has been little political pressure put on both sides to accept this kind of deal.
If we think of October 2019 the pressure was on the UK government to deal, to break the impasse of Parliament, have a new election and win a majority, and on the EU to find a N Ireland solution. This time a deal reduces future barriers but isn't considered essential by either.
If anything both sides are this time determined not to be the one that compromises their red lines. The EU because that is their trade deal modus operandi and also because of various domestic pressures, the UK because of 'sovereignty'.
Read 6 tweets

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