Brexit - Deal Reached Between UK, EU, Says President Anastasiades

President Nicos Anastasiades said that negotiations in Brussels over a Brexit have resulted in a deal.

“After long negotiations, we agreed today on a settlement regarding the demands of the United Kingdom, which is mutually beneficial to the EU as a whole and the United Kingdom,” said the president.

Throughout the negotiations process, Cyprus supported the efforts made by President of the European Council Donald Tusk, with the aim of achieving a mutually accepted solution. The prospect of the UK leaving its EU membership behind is already affecting investment sentiment.

The Pound Sterling is under pressure and has grown weaker, said FXTM analyst Lukman Otunuga:

“The elevated anxieties and growing uncertainties about the potential impact of a Brexit vote on the UK economy have haunted investor attraction towards the Sterling and this continues to encourage sellers to attack prices…China woes have opened the UK economy to downside risks and this Brexit development simply adds to the pain.”

The UK government is critical over the EU’s prolonged economic instability, and has decided to renegotiate the terms of its membership. The summit is a ‘make or break’ one, said European Council President Donald Tusk, who had a bilateral meeting with UK Prime Minister David Cameron on the night of the 18th of February.

“I’m in Brussels where I’m negotiating hard for Britain. I’m clear, I’m not prepared to take a deal that does not meet what Britain needs,” said Cameron, who has set the date on the Brexit referendum for June 23rd.

Cameron wants the UK to stay in a reformed EU.

Donald Tusk, David Cameron, Jean-Claude Juncker

There is a common belief that Britain needs the European Union and the EU needs Britain, said Government Spokesman Nicos Christodoulides. There needs to be a balance between London’s demands and the cohesion and values of the EU, he added.

The latest polls show that a Brexit referendum would be supported by just 34%.

In other developments, President Anastasiades met with German Chancellor Angela Merkel and briefed her on the real state of progress in reunification talks. The leaders also briefly discussed Turkey’s EU course and the Syrian refugee crisis.

The number of refugees arriving in the European Union has not been reduced, said Mr. Christodoulides.