Investors and analysts expect British lawmakers to firmly reject a no-deal Brexit; this opens up the possibility of a second referendum, a delayed Brexit or even a snap election.
British lawmakers struck yet another blow to Prime Minister Theresa May’s efforts to seal a Brexit deal with the European Union. The move has thrust Britain a little deeper into a crisis which is likely to have significant economic ramifications on the island nation.
British lawmakers voted down May’s amended Brexit deal by 391 to 242; May’s last-minute assurances to assuage her critics’ concerns have not amounted to anything material. However, it is to be noted that the margin of defeat was smaller than the previous 230-vote loss in January.
Britain is now left with two choices: leave the European Union without a deal, delay Brexit, a snap election or a second referendum.
On Wednesday, British lawmakers are now set to vote, at 1900 GMT, on whether Britain should leave the EU without a deal – a scenario that can rip apart well established supply chains and invite chaos into markets.
“Let me be clear. Voting against leaving without a deal and for an extension does not solve the problems we face,” said May. She went on to add, parliament was now at an impasse, “Does it wish to revoke Article 50 (announcing intention to leave the EU)? Does it want to hold a second referendum? Or does it want to leave with a deal, but not this deal?”
According to Graham Brady, an influential Conservative lawmaker, Britain is essentially facing two outcomes, leaving the EU without a deal “or some kind of endless delay”.
As per Andrea Leadsom, who manages government business in parliament, “it is still our intention, if at all possible, to leave the EU on March 29 with a good deal”.
On its part the European Union stated, the risk of a no-deal Brexit has “increased significantly” and said, there would be no more negotiations with London on the divorce terms.
“One door has closed but other possibilities have opened up and markets are hopeful that Wednesday’s vote on a no-deal Brexit will suffer a big defeat,” said Timothy Graf, head of macro strategy at State Street Global Advisors in London.
Supporters of Brexit see positivity in “no-deal” scenario. Although they admit that it will bring some short-term instability, in the longer term however, they argue that it will allow the United Kingdom to thrive and forge beneficial trade deals across the world.
Parliament is expected to firmyl reject a “no-deal” Brexit which opens the possibili8ty of the Thursday’s vote on a delayed Brexit.
“There will be no third chance,” said European Commission President Jean-Claude Juncker said on Monday. “There will be no further interpretations of the interpretations, no further assurances of the reassurances if the ‘meaningful vote’ tomorrow fails.”
A spokesman for European Council President Donald Tusk, representing EU governments, said Britain would have to provide a “credible justification” for any request to delay Brexit.
With Brexit dividing the West, many analysts fear that with an unconventional president at the head of the United States and with a growing assertion by Communist nations such as China and Russia, Britain will be economically and militarily weaker than its former self.
There is no time as the presence in getting a better handle on the maxim – unity is strength.