Chances of a June EU referendum for UK soars - Investec

FXStreet (Delhi) – Research Team at Investec, notes that the chances of a June EU referendum for UK voters rose yesterday as after several days of talks, European Commission President Donald Tusk published a letter outlining draft proposals on reaching a deal with the UK.

Key Quotes

“EU concessions on Economic Governance, Sovereignty, and Competitiveness were all as expected although PM Cameron's desired 'emergency break' on migrant benefits was watered down from a 4 year outright benefit ban, to gradually increasing benefits. Proposals to stop migrants claiming child benefits and sending the money abroad were also watered down.

The media seems to have focused on the watered down measures and not on the ability for the UK to remain in the EU without further integration. It is worth noting these are proposals that will form the basis for negotiation and the finer details are still to be agreed. On the day, the Pound strengthened on the deal, likely some relief rally that the much touted 23rd June date for a referendum is still possible, avoiding a more drawn out wait for the vote that would have caused further Pound weakness.”