EU Gives May Another Two Weeks to Avoid a No-Deal Brexit

European Union leaders staved off the threat of the U.K. crashing out of the bloc without a deal next Friday by giving Theresa May an extra two weeks to work out what to do. At a summit in Brussels on Thursday, the leaders told May that if U.K. lawmakers don’t endorse her Brexit deal next week, she’ll have until April 12 to decide whether to leave without an agreement or request a much longer extension. The decision removes the immediate possibility of a no-deal Brexit in seven days’ time.

It also gives May a powerful threat to issue to pro-Brexit hardliners in her party: Back the deal or risk being trapped in the EU for much longer. May said she’ll put the unpopular accord back to parliament next week. The pound rose 0.4 percent against the dollar on Friday after falling as much as 1.5 percent during Thursday trading. More than seven hours of discussion began with May delivering her most extensive pitch yet to the 27 remaining leaders before she was asked to leave the room while they thrashed out their response.

With May planning to take her deal back to Parliament for a third time next week, the plan effectively allows the first two weeks in April for the U.K. to work out what to do next. The EU wants the government to set out a clear plan for how it would use a longer extension. In a highly unusual move for EU summits, the meeting saw leaders personally brainstorm what to offer the U.K. French President Emmanuel Macron proposed restricting the extension to May 7 but other leaders pushed back with German Chancellor Angela Merkel acting as mediator.

EU Gives May Another Two Weeks to Avoid a No-Deal Brexit, Bloomberg, Mar 22