U.K., EU Agree on Draft Brexit Deal, Paving Way for Key Vote

EU leaders approve divorce agreement, setting up a critical vote in the U.K. Parliament

European Union and U.K. negotiators agreed on a draft Brexit deal, paving the way for a crucial vote in the U.K. Parliament. Investors are bracing for sharp movements in markets as the political drama builds. Photo: Francisco Seco/AP

BRUSSELS—U.K. Prime Minister Boris Johnson’s government and the European Union agreed to new terms for the country’s exit from the bloc Thursday, paving the way for a high-stakes vote in the British Parliament.

The accord was endorsed by the leaders of the other 27 EU countries at a summit here. Mr. Johnson now faces the formidable challenge of winning backing for the deal from Parliament. In a setback for the deal’s prospects, a political party allied with his government said it wouldn’t support the deal.