(Opinion) Yesterday Theresa May´s Brexit deal suffered another big defeat in Parliament losing by a margin of 149 votes (391 to 242). After the vote PM may gave a speech on which a few important things were said:
- She confirmed that tomorrow a vote on a no deal Brexit will be held
- She gave her conservative MPs a free vote on no deal
- She will implement wahtever Parliament votes for
The UK has just over 2 weeks before it HAS to leave the EU and there is still no clear idea on how they´re going to do it. Everything from imigration reforms to labor laws and trade, which are obviously affected by Brexit, have not yet being defined by Parliament. PM May has a deal in hand but Paliament just won´t vote for it and some MPs even state that it would be better to have a second referendum. This has to stop.
The UK invoked article 50 on March 29th 2017. Article 50 gives the country that is ready to leave the EU 2 years to negotiate its withdraw. No country has ever invoked article 50 which is why we all knew that this was going to be extremely complicated but the UK´s economy is facing serious damages if Parliament doesn´t vote for a deal. Just imagine that on March 30th businesses can wake up to new tariffs, even though the Government said that it won´t apply tariffs on most goods in a no-deal Brexit scenario; and this is just one issue of many that the UK economy faces. A no-deal Brexit would be one of the most irresponsible political decissions in modern history, and the US elected Donald Trump as President 2 years ago.
The EU said that the risk of a hard Brexit has never been higher but there won´t be any more negotiations by March 29th and that it did everything it could for a brexit deal, now EU states must prepare its customs for a hard Brexit. Basically the UK has the ball and all they need to do is vote for a deal to avoid a disaster that will immediately impact hundreds of thousands and in the mid term millions of people.
I hope that the Parliament votes for the deal held by PM May and the transition to exit the EU is made as smoothly as possible because the EU said that they will reject any unjustified request to delay Brexit.
Today´s vote is going to be extremely important for the Pound and price action will be very volatile during the event and a vote in favour of the deal will have a very bullish effect on the Pound. In the contrary a vote for a no-deal Brexit will see the Pound crash almost immediately.
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