Leavingthe U with a dealbytheendofOctoberisnowlookingextremelyunlikely, accordingtoDowningStreet, andtalksareclosetobreakingdown.
Theclaimfollowswhatwasdescribedas a challengingphonecallbetweenBorisJohnsonandAngelaMerkelthismorninginwhichtheGermanchancellorapparentlysaid a dealwasunlikelyandlessNorthernIrelandremainedinthecustomsunion.
TherewasanangryresponsefromBrusselsistheuse.
TopofficialDonaldTuskwarnedBorisJohnsonnottobecomeengagedinwhathecalled a stupidblamegame.
Butthe U believesthat's notrealisticwithoutseriousdisruption.
Sosayingnoandthatmeansit's extremelyunlikelyanagreementcanbereachedintimefortheUKtoleavethe U with a dealattheendofthismonth.
Tonight, the T shirttoldIrishTVheandBorisJohnsonagreedtheywouldkeeptryingfor a deal, but I thinkit's gonnabeverydifficulttosecureanagreementbynextweek.
I wouldnevergonnaworktheyweredesignedtofailoninsteadofreactingandchangingtheirproposalsthere.
Nowcollapsingthetalksonengagingin a in a recklessblamegame, Parliamentpackedupfor a weektonight, suspendedagainbeforethegovernmentputsitsplansforthecountryforwardin a queen's speechnextMonday.
Westminsterpreparationsarecontinuingfor a nodealBrexitandtodaytheCabinetministerinchargeofthat, MichaelGove, saidthatevenwitheverypossiblepreparationinplace, risksandchallengesforbusinessesstillremain.
Today.
ThethinktankfortheInstituteforFiscalStudiesissued a starkwarningabouttheimpactof a nodealBrexitontheeconomy, predictingthatnationaldebtwouldrisetolevelsnotseensincethe 19 sixties.
ButthelikesoftheInstituteforFiscalStudieshasThe I.
F.
S predictsthatthepublicfinanceswillbeheavilyimpactedby a nodealBrexitthattheannuallevelofborrowingthedeficitwilldoubleovertwoyearsapproaching, ah, 100 £1,000,000,000 onthatthetotalstock, ournationaldebtthatthatwouldreachthehighestlevelit's beenforoverhalf a century.
Wehavenodeal.
Theeconomywouldgrowverylittleif a talloverthenexttwoorthreeyearsborrowingwouldriseuptowards £1,000,009,100 a year, whichis a verysignificantincreaseonwhereweare.
Ifthathappened, I thinkwehavetohaveanotherperiodofeithertaxincreasesorspendingcutstogetitbackundercontrol.
Sowhyisthat?
TheexperteconomistsbehindthisreportssaythatnodealwillimpactourtradewithEuropeandleadto a smallereconomy, comparedwithBrexitbeingreversed, forexample, a gapofover 4% thatcouldbemostlyeliminatediftherewasstill a deal.
Thelatestnumbersshowthattheeconomyingeneralisbecominglessproductiveafter a slumpinbusinessinvestmentthatmanyblameontheprospectofnodealandprolongedpoliticaluncertainty.
Andthatmeanstherefore, inalllikelihood, we'relookingat a situationwheretheprimeministerisforcedtoaskthe U for a delayforanextension, butfor a delayandanextensionthathedoesnotwant, weknowthatParliamentwilltryeverythingtoblockhim, takingusoutoftheEuropeanUnionwithout a deal.
Soifthisallfails, wecanexpectintheimmediateaftermathoftheEuropeansummitlegalandpoliticalscreamingmatchthatgoesonfor a numberofdaysbeforeeitherBorisJohnsonisforcedtogetthatdelay.
Andthenweprobablytipveryquicklyinto a generalelectionorsomehowbyhookorbycrook.
Heachieveswhatlooksvery, verydifficultforwhathestillwantstodoistakeusoutofthe U attheendofthismonth.
Butatthemomentitlookslikeinanywaywe'reheadingfor a periodthatmaywellbeevenmoreturbulentthanwhatwe'velivedthroughinrecentweeks.
NoraCata, Thankyou.
goodevening.
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