Categories: Market Overview

Theresa May suffered an overwhelming defeat again

U.K. Prime Minister Theresa May’s Brexit deal was rejected once again by Parliament, throwing the country deeper into political crisis and raising the prospect that the divorce will be delayed or even reversed. Renegotiated late on Monday night, the latest version of the deal was defeated by 391 votes to 242. That’s less than the record 230-vote margin she suffered in January, but still a stinging repudiation of two years of painstaking work.

Attorney General Geoffrey Cox, whose damning assessment on the new terms meant critics held firm, said in an interview that an extension to the U.K’s departure date from the European Union beyond March 29 was “inevitable.” In fact with the deal all but dead, Parliament will probably vote to postpone Brexit this week, and lawmakers — including some of May’s own Cabinet — will likely try to maneuver to force the government to rip up its Brexit plans and start again.

Members of Parliament are expected to vote Wednesday to take a chaotic no-deal option off the table. May said she’ll offer a free vote, meaning the government will not whip Conservative lawmakers to take a particular side. But there’s a risk all they manage to do is postpone the drama for another few months. It was notable that she included a second referendum on Brexit among the choices Parliament may face in coming months. The pound pared losses after May spoke.

Theresa May’s Brexit Deal Routed With Extension Now Seen as ‘Inevitable’, Bloomberg, Mar 13

The FxPro News Team

This team of professional journalists announces the most interesting and influential articles from the major financial media as a brief summary. All such news may have sufficient potential to affect the course of trading assets.

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