Three days and three votes down the street, the UK Parliament has managed to persuade markets of nothing however its eagerness for inactivity: within the first two days, the place motion was to be assumed, the Parliament voted towards, whereas on the third day it agreed to push the choice additional down the street, if the EU permits it.
Whereas companies have taken this in a mildly optimistic manner, it is a large IF. To start with, one other vote will happen earlier than Wednesday, March 20, the place Theresa Might hopes to influence at the very least her personal celebration to approve of her present cope with the EU. This may mark the third time Might tries to acquire a significant vote on her Brexit deal, after dropping with a 149-vote distinction final Tuesday.
Might wants the vote as she can be travelling to Brussels for the EU Council Summit, probably for the final time earlier than Brexit. It’s there the place she’s going to request the extension of Article 50 from different EU leaders. The one subject is that Might is prone to be seen as a pupil looking for excuses for not handing in her project in due time if good cause(s) for the delay will not be provided. Moreover, even when good cause(s) is obtainable, the EU leaders reserve the power to reject the delay proposal, no matter size of the proposed extension; all it takes is one nation to reject the proposal and the UK won’t be granted its delay.
The Brexit saga doesn’t seem to have grow to be any clearer, although markets have been reacting on what they understand to be finest for nations’ prospects. Theresa Might’s final minute technique may match if the UK Parliament finally ends up between a alternative for a no-deal Brexit or the acceptance of the PM’s deal, however discovering themselves between the proverbial rock and exhausting place can solely happen if the EU rejects the delay on March 21-22.
Might’s technique may backfire within the case the place the EU accepts the delay, as it’s going to give the opposition sufficient time to pursue a no-confidence vote, as Might’s management will possible seem much less enticing whether it is perceived that she has wasted two years and failed to succeed in an settlement. Nonetheless, Might would proceed to move the UK if the following no-confidence vote has the identical end result as the primary.
Sadly, the probabilities for motion stay as many as earlier than, provided that the Parliamentary choices have probably not enlightened the markets. Presently, even the likelihood for the cancellation of Brexit from the UK facet can’t be dominated out, although MPs rejected requires a second referendum.
Except political choices lastly supply clear steerage as to the place the UK is headed and cease issuing each optimistic and damaging indicators on the subject of the nation’s financial prospects, the Pound is due for a risky second half of the month.
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Dr Nektarios Michail
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