UK wins Brexit transition deal in return for Irish vow

Britain's Secretary of State for Exiting the European Union David Davis and European Union's chief Brexit negotiator Michel Barnier address a joint news conference in Brussels, Belgium March 19, 2018. REUTERS/Francois Lenoir

BRUSSELS (Reuters) - Britain and the European Union agreed on Monday to a transition period to avoid a "cliff edge" Brexit next year -- though only after London accepted a potential solution for Northern Ireland's land border that may face stiff opposition at home.

The pound surged on confirmation that Britain would remain effectively a non-voting EU member for 21 months until the end of 2020. Some business leaders, however, echoed a warning from EU negotiator Michel Barnier that the deal is legally binding only if London agrees the whole withdrawal treaty by next March.