U.K., EU brace for no-deal Brexit cliff as trade talks falter

The latest: Johnson warned on Thursday evening that businesses should make "proper preparations" for the "strong possibility" of a no-deal Brexit, saying that the current proposal on the table "is not right for the U.K."

Details: The Commission's contingency measures propose regulations to maintain air services and safety standards and basic road connectivity for both passenger and freight transport for six months, provided that the U.K. ensures the same.

• Notably, the plan also includes a one-year proposal for "continued reciprocal access" by EU and U.K. vessels to each other's fishing waters — a subject that has been one of the most difficult and unresolved matters in Brexit negotiations.
• Though a relatively minor part of the U.K. economy, fishing has become synonymous with the cause of restoring sovereignty because the EU is demanding access rights to U.K. waters.

The big picture: Experts have said that a no-deal Brexit with the U.K.'s largest and closest trading partner would cause massive disruptions to businesses and livelihoods, with the governor of the Bank of England warning that it would do more long-term damage to the economy than the coronavirus.

• Hardline Brexiteers have painted that outcome as a chance for Britain to restore its sovereignty, insisting that "no deal is better than a bad deal."
• As negotiations have looked increasingly dire in recent weeks, Johnson has stressed that "on Jan. 1, whatever happens there’s going to be change and people need to get ready for that change."

What to watch: Talks between each side's top negotiators will continue into the weekend. Johnson and von der Leyen have agreed that a "firm decision should be taken about the future of the talks" by Sunday.