After several weeks of Terresa May facing a barrage of rejection on Brexit deal votes in parliament, the Prime Minister has been to the EU to request a Brexit delay.
The EU has granted a few extra weeks for May to alter her Brexit plan, to get her proposals passed through parliament in order to avoid a no no-deal Brexit, the new deadline has been extended from March 29th to April 12th for the U.K to finally leave the EU.
The Prime Minister has faced a torrid time with the politicians, she needs to convince parliament that the deal is good. At the same momentum is gathering in the U.K public, with sections calling to revoke article 50 or hold a second referendum, in order to remain in the EU.
Currently, the government will be able to request a longer extension during the already extended period if it can “indicate a way forward” and agree to hold European elections. In the unlikely event that May does win the support of the Commons during the next vote on this coming Tuesday, the UK will remain a member state until May 22nd to allow necessary withdrawal legislation to be passed.
Donald Tusk, the European council president said that the options left available to the U.K are “The UK government will still have a choice of a deal, no-deal, a long extension or revoking article 50.” It seems that the EU are willing to display patience till the “very end” to allow the U.K to finalise all aspects.
The negotiations are at a critical moment, and it seems the May has no alternative back-up plan, other than just to try to push through the current deal again, and there seems to be a lack of confidence in the prime minister at home and within the EU leaders.
Tuesday’s vote could prove to be critical, and whatever the decision, traders can expect market volatility once the results of the votes are announced.
Head to Yadix, to maximize the markets with institutional level ECN trading: https://www.yadix.com/trading-conditions/account-comparison/