The British economy has been pummeled by the pandemic. Now, with talks on a new trade deal with the European Union at risk of collapse, Johnson has to decide: Does he try to find common ground with Europe, or walk away?Britain already faces a tough 2021 as the country battles the twin shocks of coronavirus and Brexit. But failing to secure an agreement with the United Kingdom's biggest export market would amplify the pain. Walking away empty-handed — which Johnson threatened to do on Friday — would create disruptions to trade when the transition period ends later this year, shaving more than $25 billion off the UK economy in 2021 compared to a scenario where a limited free trade deal is agreed, according to a CNN Business analysis based on forecasts from Citi and the Institute for Fiscal Studies. That would put the country even further behind on its efforts to recover from the historic shock triggered by the pandemic."The combination of Covid-19 and the exit from the EU single market makes the UK outlook exceptionally uncertain," Laurence Boone, chief economist at the Organization for Economic Cooperation and Development, said in a report this week. "Actions taken to address the pandemic and decisions made on future trading relationships will have a lasting impact on the United Kingdom's economic trajectory for years to come."
Little progress on deal
The clock is ticking for the United Kingdom and the European Union to come to terms, with Britain set to lose its favorable trading status with the bloc at the end of December.Meetings this week concluded without any major breakthroughs, and Johnson said Friday that the country should prepare for a trading relationship that resembles Australia's. Australia does not have a comprehensive trade deal with the European Union. Most trade is conducted under more basic World Trade Organization rules.Given that Brussels has "refused to negotiate seriously for much of the last few months," Johnson said, "now is the time for our businesses to get ready, and for hauliers to get ready, and for travelers to get ready" for a no-deal exit.Yet there may still be some hope for an agreement. Johnson stopped short of ruling out further talks, and EU Commission President Ursula von der Leyen tweeted Friday that her team would head to London next week to intensify negotiations as previously planned.Fishing rights and the framework for resolving future disputes remain key sticking points for both sides, according to Mujtaba Rahman, managing director for Europe at Eurasia Group, a political risk consultancy. "We don't think the deal will flounder on fish, but we do think the technical and political challenges it presents will be more difficult to overcome than many believe," Rahman said Thursday.Johnson had said that terms of the future trading arrangement needed to be hammered out by mid-October to give businesses enough time to plan for the outcome. That deadline has now come and gone.Rahman believes it's still in Johnson's best political interest to strike a deal, given the criticism of his management the Covid-19 crisis."As Johnson's government tears itself apart on coronavirus, the need for a political win, which only a deal can be, is greater than ever," he said.The United Kingdom has in recent days opted for a regional approach as its coronavirus cases spike, reimposing strict rules in Liverpool and barring people from different households from meeting indoors in London starting Saturday. That's led to criticism from both those worried about the impact on the economy, and those who believe dramatic national measures are necessary to keep the situation under control.
Businesses sound alarm
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Bosnia: Icy struggle for many migrants stuck in freezing tents
Thousands of refugees and migrants urgently need proper shelter in Bosnia-Herzegovina after weeks outdoors in freezing cold, the UN has warned.
Some 2,500 people are in unheated tents or sleeping rough near the northern town of Bihac. A UN official says some are now being moved to heated tents.
Local authorities have refused to reopen a nearby reception centre.
Instead hundreds have been forced to return to a temporary camp that was ravaged by fire last month.
Peter Van der Auweraert of the UN’s International Organisation for Migration (IOM) has tweeted photos of the basic tents erected at the Lipa camp by the Bosnian army a few days ago.
But his latest post is upbeat. Lipa is carpeted with heavy snow, he says, so the relocation of migrants to heated tents, now under way, is an “important step forward”. The new tents were brought in by the army.
The camp was set up hastily in the summer when the coronavirus pandemic forced crisis measures including border closures.
But aid agencies pulled out of the camp in December, saying it was unsustainable without water and electricity.
Some residents forced to leave the facility looted equipment and set fire to tents, police said.
However, about 900 migrants had to go back there, after local officials refused to let them move to the empty reception centre in Bihac. Another 1,500 are struggling in primitive conditions elsewhere near the town.
The migrants are from South Asia, Africa and the Middle East, and got stuck in Bosnia while trying to reach Croatia, an EU member state seen as a gateway to the EU.
Some of the migrants have refused to use the tents in Lipa because they lack heating and sanitation. Some also went on hunger strike, angry at the lack of amenities.
But on Tuesday many did receive Red Cross food parcels.
“We want people in proper reception centres where they have access to services, like the 6,000 other people in Bosnia,” Mr Van der Auweraert, the IOM’s head in Bosnia-Herzegovina, told the BBC’s Balkans correspondent Guy De Launey at Lipa.
The IOM says about 8,500 non-EU migrants are living in Bosnia, still hoping to get to northern Europe.
“Here is too much cold. You know, the weather is rainy and the weather is very cold, and we can’t sleep in here,” one migrant told our correspondent.
In recent years thousands of people, including refugees from the conflicts in Afghanistan and Syria, have entered Bosnia hoping to get asylum in the EU.
Bosnia’s central government ordered the reopening of a reception centre in an old factory on the outskirts of Bihac, but the local authorities refused.
The city’s mayor, Suhret Fazlic, told the BBC: “We are not satisfied with approach of EU – people coming from Greece and Bulgaria want to get to Croatia, but stuck in Bihac.”
The EU has told the Bosnian authorities that they “must assume their responsibilities”. The country of 3.5m has ambitions to join the EU.
On Wednesday the bloc’s foreign policy chief Josep Borrell said the EU had funded the still empty shelter in Bihac, but Bosnian officials had “ignored repeated appeals to provide basic and secure living conditions and humane treatment”.
His spokesman Peter Stano said “over the last two years, we provided over 90m euros (£81m; $110m) for centres, equipment, medical and social care.
“We need them to move – not play political games with people’s lives,” he complained.
Read from source: https://www.bbc.com/news/world-europe-55589090
Covid: Sweden official defends Christmas trip to Canary Islands
A top Swedish official involved in the coronavirus response has defended a Christmas holiday in the Canary Islands in the face of heavy criticism.
Dan Eliasson is head of the civil contingencies agency, which earlier in December had texted all Swedes urging them to avoid travel.
He was photographed in Las Palmas airport on the island of Gran Canaria.
Mr Eliasson insisted the trip was necessary “for family reasons”.
He told Swedish media that he had “given up a lot of trips during this pandemic” but thought this one was necessary because he had a daughter living in the Canaries.
“I celebrated Christmas with her and my family,” he told Expressen newspaper. He also said he had been worked remotely while in the Canaries.
Sweden has had 437,000 confirmed cases and 8,700 deaths – many more than its Scandinavian neighbours. The country has never imposed a full lockdown.
However, alarmed by rising numbers of cases last month, the Swedish government reversed some of its guidance and sent a text message to all Swedes asking them to read updated guidelines.
The guidelines included asking Swedes to avoid unnecessary trips and not to make new contacts during a journey or at the destination.
Mr Eliasson was then photographed several times in Gran Canaria, including at the airport.
There have been calls for Mr Eliasson, an experienced official who has worked at several important departments, to be fired.
Prime Minister Stefan Löfven and other ministers have not yet commented, according to Swedish media.
Read from source: https://www.bbc.com/news/world-europe-55523587
UK regulator approves Oxford/AstraZeneca coronavirus vaccine
UK regulators have approved the use of the Oxford University/AstraZeneca coronavirus vaccine, which is cheaper and easier to distribute than some rivals and could in time offer a route out of the pandemic for large parts of the world.
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