Theresa May has ‘no option’ but to put her Brexit deal to Parliament again
With Brexit ‘in the hands’ of the EU, as the UK looks to Brussels for an extension to Article 50, Peter Dixon from Commerzbank tells IG why Theresa May has no option but to put her revised deal to parliament for a third time.
With the future of Brexit now ‘in the hands’ of the EU and with the UK now expected to ask Brussels for an extension to Article 50, Peter Dixon from Commerzbank told IG that the Theresa May now has no option but to put her revised Brexit deal to parliament for a third time.
If the EU says no to May and does not grant an extension, May will have to put her withdrawal agreement to MPs in Westminster yet again as the only option to prevent a cliff edge Brexit on March 29, Dixon said.
If this chain of events does happen, Eurosceptic MPs may be forced to accept May’s revised proposal in a last-ditch effort to salvage Brexit.
Majority of MPs against a second referendum
Dixon expects that most MPs are against the idea of a second referendum, according to opinion polling data, with it the least likely option moving forward.
Another option left on the table is for parliament to unilaterally withdraw Article 50, but with such short timeframe to do so and the idea of scrapping Brexit highly divisive among the electorate the chances of it happening are slim, he said.
General election a ‘possibility’
Dixon believes that a general election is a possibility, but says it is unclear whether there is significant support in parliament to trigger such an event. ‘At the moment, it looks like [Britain] will be struggling along for the next few months,’ he said.
In terms of the economy, Dixon says that avoiding the cliff edge Brexit is ‘good news’, but any delay will see the uncertainty continue, meaning sterling and investment will fall.
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.
This information/research prepared by IGA or IGA Group is intended for general circulation. 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 or 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. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Please see important Research Disclaimer.
See an opportunity to trade?
Go long or short on more than 16,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets