UPDATE 9-British Prime Minister Johnson promises a bold new Brexit deal

By Kitco News / July 24, 2019 / www.kitco.com / Article Link


* Johnson is Britain's new PM, appoints ministers
* Johnson vows 'no ifs or buts' Brexit
* 'We can do a deal' - Johnson says


* He promises to quit EU by end of October, come what may
* Sajid Javid appointed finance minister
(Adds appointments, Tusk)By William James and Kylie MacLellanLONDON, July 24 (Reuters) - Boris Johnson promised in hisfirst speech as prime minister to lead Britain out of theEuropean Union on Oct. 31 with "no ifs or buts" and warned thatif the European Union refused to negotiate then there would be ano-deal Brexit.Johnson, who has been hailed by U.S. President Donald Trumpas Britain's Trump, is sending the strongest message yet to theEU that he will be taking a distinctly tougher approach tonegotiating a revision of the Brexit divorce deal.He took over from Theresa May at one of the most perilousjunctures in post-World War Two British history - the UnitedKingdom is divided over Brexit and weakened by the three-yearpolitical crisis that has gripped it since a 2016 referendumvote to leave the bloc."We are going to fulfil the repeated promises of parliamentto the people and come out of the EU on October 31, no ifs orbuts," Johnson, 55, said after arriving at the premier'sofficial residence, No.10 Downing Street."We can do a deal without checks at the Irish border," hesaid. "It is of course vital at the same time that we preparefor the remote possibility that Brussels refuses any further tonegotiate and we are forced to come out with no deal."Just hours after arriving in Downing Street, the newConservative Prime Minister began work with one of the biggestculls of senior government jobs in recent British history,changing all of the main ministers. Most of his appointees wereBrexit supporters. Johnson's bet is that the threat of a no-deal Brexit willpersuade the EU's biggest powers - Germany and France - to agreeto revise the divorce deal that May agreed last November butfailed to push through the British parliament.The gambit, an admission that three years of Brexit talkshave failed, sets the United Kingdom up for a showdown with theEU and thrusts Johnson towards a potential constitutionalcrisis, or an election, at home.While his strategy could get support from Trump, who hadadvised May to take a much tougher line with Brussels, he hasjust 99 days to renegotiate and ratify the so called WithdrawalAgreement that the EU has repeatedly refused to amend.European Council President Donald Tusk wrote to Johnsonsaying he was looking forward to discussing cooperation "indetail".


'NEVER MIND THE BACKSTOP'One of Britain's most prominent Brexit campaigners, Johnsonhas repeatedly pledged to leave the EU by Oct. 31 - "do or die"- and to inject a new optimism and energy into the divorce,which he argues will bring a host of opportunities.In his speech on Wednesday, he rebuked "gloomsters" and thepolitical class who he said had forgotten the people they shouldserve, promising instead to serve the British people who he saidwere his government's true bosses. One of the issues that prevented May getting a divorce dealthrough parliament was the Irish "backstop" - an insurancepolicy designed to prevent the return of a hard border betweenthe Irish Republic and the British province of Northern Ireland.Johnson said that issue could be dealt with."Never mind the backstop. The buck stops here," he said,adding that new deal could be done that allowed for no borderchecks. He said the backstop was "anti-democratic".He promised to accelerate preparations for a "no-deal"though he said Britain did not want such an exit."Listening to what he said today, I got the impression thathe wasn't just talking about deleting the (Northern Ireland)backstop, he was talking about a whole new deal - a better dealfor Britain," Irish Prime Minister Leo Varadkar said.


"That is not going to happen." Many investors say a no-deal Brexit would send shock wavesthrough the world economy, tip Britain's economy into arecession, roil financial markets and weaken London's positionas the pre-eminent international financial centre."To all those who continue to prophesy disaster, I say yes -there will be difficulties though I believe that with energy andapplication they will be far less serious than some haveclaimed," Johnson said in his speech, watched by his girlfriend,Carrie Symonds, and his staff.


PM JOHNSONDeclared new leader of the Conservative Party on Tuesdayafter a vote by party members, Johnson began forming his
government from Brexit supporters.Sajid Javid, the 49-year-old son of Pakistani Muslimimmigrant parents, was named as his finance minister. PritiPatel was appointed interior minister. Dominic Raab wasappointed foreign minister. Stephen Barclay remained as Brexitminister. Ben Wallace was made defence minister. "He's severing all connections with the Theresa May regime,"said Jonathan Tonge, professor of politics at the University ofLiverpool.Johnson is due to appoint Dominic Cummings, the campaigndirector of the official Brexit Vote Leave campaign, as a senioradviser in Downing Street. There was a moment of drama in Johnson's passage to power ashe drove to Buckingham Palace for his audience with QueenElizabeth and his formal appointment. Greenpeace protesterstried - but failed - to block the path of his car as hischauffeur drove around them.Earlier May appeared to be fighting back tears as she wasapplauded out of the House of Commons chamber.DISUNITED KINGDOM


Johnson, man known for his ambition, messy blond hair,flowery oratory and cursory command of detail - must solve aseries of riddles if he is to succeed where May failed.The 2016 Brexit referendum showed a United Kingdom dividedabout much more than the EU, and has fuelled soul-searchingabout everything from immigration to capitalism, the legacy ofempire and modern Britishness.The pound is weak, the economy at risk of recession, alliesare in despair at the Brexit crisis and foes are testingBritain's vulnerability.Johnson's Conservatives have no majority in parliament andso can govern only with the support of 10 lawmakers from theBrexit-backing Democratic Unionist Party in Northern Ireland.


While Johnson has said he does not want an early election,some lawmakers have promised to block any attempt to leave theEU without a divorce deal.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^FACTBOX-Who has UK PM Johnson appointed to his cabinet? FACTBOX-Five urgent tasks for Britain's new prime minister FACTBOX-Johnson's stance on Iran, Trump, Huawei and the economy TAKE A LOOK-Johnson named British prime minister FACTBOX- Diehard eurosceptic or opportunist? Johnson's views onthe EU Brexit page on Eikon INSTANT VIEW-Johnson to be Britain's prime minister BREAKINGVIEWS-Boris Johnson's political triumph will be fleeting UK's Johnson to take helm of economy as warning signs flash Race to the Prime Ministership ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional reporting by Elizabeth Piper, Andy Bruce, KateHolton, William Schomberg, David Milliken and Paul Sandle inLondon and Gabriela Baczynska in BrusselsWriting by Guy FaulconbridgeEditing by Janet Lawrence, Kevin Liffey and Frances Kerry)

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