Downing Street rejects Brussels view but pound remains under pressure.
Europe now reportedly believes that the U.K. government views "no-deal" Brexit as base case scenario.U.K. government source says Downing Street still wants to negotiate a new deal.
Johnson sent his envoy to Brussels last week with the specific message that unless European officials ditch their commitment to the Irish backstop, then Britain will leave without any deal. The Bank of England has said if the U.K. does leave with no plan, there is a one-in-three chance of a U.K. recession.
The spokesperson claimed it was "sad" that Europe would not enter into fresh negotiations and that the U.K. government was "ready and willing" to talk. The insistent and hard-line nature of the newly formed U.K. government has led some political commentators to the conclusion that Johnson and his advisors see a no-deal exit as the only viable solution to rescuing support for the Conservative Party.
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