UK Parliament sends Theresa May back to Brussels after rejecting deal
UK prime minister Theresa May has been sent back to Brussels to re-negotiate her Brexit deal, after it was ripped up in parliament.
UK prime minister Theresa May's deal has been ripped up in parliament on Tuesday, and she is set to head back to Brussels to re-negotiate her Brexit deal.
‘There is limited appetite for such a change within the EU and negotiating it will not be easy,’ May told the House of Commons.
May also said it was evident that the majority in Parliament wanted a revised agreement. She has now got the added pressure to re-negotiate a deal, as Britain is scheduled to leave the block in just eight weeks.
May wins backing for plan B
On Tuesday, May defeated a move by Labour politician Yvette Cooper to give Parliament the power to force a delay to Brexit day.
May also won the backing of members of Parliament for her plan b, which would entail re-opening talks with the European Union.
Conservative lawmaker Graham Brady’s plan to reopen the Brexit agreement was also backed by parliament on Tuesday, a welcomed win for May.
However she was defeated when the Commons backed an amendment opposing to leave the EU without a deal, signaling the possibility that Parliament would likely block a no-deal split.
After the votes, EU President Donald Tusk said that the deal, including the backstop, was “not open for renegotiation.”
However, Tusk also mentioned there was room for change to the non-binding declaration on future relations.
May is reportedly returning to Brussels to begin re-negotiating within days.
How the Pound is reacting to Parliamentary moves
The pound fell on Tuesday, after Parliament rejected extending the exit day deadline, raising the chances of a no-deal split.
While Sterling was little changed on Wednesday at $1.3078 retreating 0.7 % overnight after lawmakers rejected a proposal to prevent a hard exit.
This follows a more positive week for the pound, after it hit $1.3218, its highest since mid-October, on hopes that the UK might avoid a no-deal departure from the EU.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
Please see important Research Disclaimer.
Trading around Brexit
Find out how the UK’s exit from the EU continues to affect traders, and discover:
- The unique opportunities in a ‘hard’ and ‘soft’ Brexit
- The markets you should be watching
- Everything that’s happened so far
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.