The Conservative Party is engaged in pointless internal negotiations between its Leavers and Remainers, in the hope of coming up with something that will save their party from destruction and please the EU into the bargain.

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Theresa May's Tories seem to have forgotten that to get a deal, they need to keep keenly in mind what the other side is saying.

But what they've decided to do is ignore that and get the Tory Leavers and Remainers together to indulge in deep discussions amongst themselves talking about how they're going to unlock the Withdrawal Agreement to extend the timing by a year, change the backstop arrangements and try their luck with the technical solutions to the Irish border again.

Welcome to the Malthouse Compromise.

Meanwhile the German Chancellor, Angela Merkel is in Tokyo giving a speech about how the Withdrawal Agreement won't be changed because of how long it took to get it to where it is today.

Merkel did say that both sides need to be creative to move this process forward, but her idea of being creative was to keep the legally binding Withdrawal Agreement completely unchanged so almost certainly permanently locking the UK into the backstop position, but tinker with the non-legally-binding political declaration instead.

And the Secretary-General of the EU Commission, Martin Selmayr, has said that the EU is not looking at offering any legal assurances over the backstop.

So, how does the UK government think it is going to get its Malthouse Compromise through Brussels, if the Eurocrats keep saying there will be no renegotiation of the Withdrawal Agreement?

If you're going to ignore Brussels and its Eurocrats then do it properly, by leaving on WTO (World Trade Organisation) terms as soon as possible.

This Malthouse Compromise, named after Tory MP Kit Malthouse because he got the party's Remain and Leave sides together over it, doesn't look as if it will get anywhere in Brussels so you have to wonder why the PM has decided to take it seriously.

Especially when you learn that Downing Street has admitted that there are no meetings planned between the UK and EU to talk about this.

But still the 'Alternative Arrangements Working Group' (AAWG) as it's been called, of MPs and ministers is getting together for a three day internal discussion on how to proceed with this plan.

But once they're done and she presents it to the Eurocrats, she'll come back as ever empty handed apart from a few warm words and assurances that bear no legal weight.

And with no changes to the legal text of the Withdrawal Agreement, the PM is extremely unlikely to get that Withdrawal Agreement through the house. Unless she can scare everyone rigid with a renewed Project Fear.

At least all that this pointless activity will do is wind the clock down a little more towards what is looking more and more likely to be an inevitable no deal Brexit.

But there is also the issue of the time being wasted on this when are now just 53 days to go to Brexit day and the legislation that would ease a no deal Brexit is not being progressed through the legislative pipeline.

So it looks like the politicians will end up causing what they say they fear most – a no deal Brexit with no laws in place to make it work more easily.

But that would be far preferable to either staying in the EU or taking Mrs May's deal.

And the reason for that is immediate certainty! Theresa May's deal ensures another two plus years of uncertainty while we try and thrash out a deal with the EU having paid £39 billion for it with zero guarantees. While the Malthouse Compromise deal just adds another year of uncertainty, designed more to mend internal Tory problems than get the country out of the EU in short order.

This should be the time for the Tory Brexiteers to take the lead and demolish the WTO fear-mongering fantasies, while dismantling Theresa May's absurd deal – illusory brick by illusory brick.

But, either by design or in stupidity, it appears that the Brexiteers have been sucked into effectively supporting May's deal via the Malthouse Compromise – Theresa May must think it's Christmas all over again!

I just hope that the Brexiteer involvement is part of a devious plan to get us as near to Brexit Day as possible, prior to declaring that a WTO Brexit is now the only way ahead.

And then I think once a no deal was proved to be inevitable or had come to pass, there would be a massive rush in Westminster to get the required laws through very quickly.

Now, one thing that no-one's talking about is Sterling. The UK currency closed today at 1.1419 euros to the pound, which is up on the month and higher than it was at this time last year.

With the stated dangers of a no deal exit from the EU around the corner you might think that Sterling should be taking a battering, wouldn't you – given all the fear-mongering.

But maybe the markets are now taking a different view what with the troubles in the Eurozone's biggest economies. Italy is now in recession with one of its banks under ECB administration. Germany's growth prospects have been slashed in half and there are question marks over Deutsche Bank, which has today said it may cut bonuses if revenue fails to grow – it may even be forced to merge with Commerzbank. While France continues to see upheaval as the yellow vest protests show no signs of abating.

I admit that when the initial resilience of the pound became apparent, I put it down to rumours of Article 50 extensions and the like. But as we get nearer to March the 29th then we what we might be seeing, is the markets now looking at the situation in a new light.

Food for thought.

So, please let us all know what you think by leaving a comment below.

Thank you for watching.

Sources:

https://www.theguardian.com/politics/live/2019/feb/04/brexit-latest-news-developments-pm-asks-mps-to-find-alternative-arrangements-to-backstop-as-eu-insists-those-ideas-wont-work-politics-live

https://www.independent.co.uk/news/uk/politics/brexit-news-live-updates-theresa-may-deal-eu-irish-border-backstop-negotiations-a8761846.html

https://www.telegraph.co.uk/politics/2019/02/04/brexit-latest-rejecting-theresa-mays-deal-will-delay-brexit/

https://finance.yahoo.com/news/deutsche-bank-may-cut-bonuses-154152585.html

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