BREXIT Update: PM May’s Government Survived No-confidence Vote

BREXIT Update: PM May’s Government Survived No-confidence Vote

$GBP, $USD

Wednesday, British Prime Minister Theresa May’s government survived a no-confidence vote, a day after her BREXIT deal was overwhelmingly rejected by lawmakers.

The House of Commons expressed confidence in the government by 325 votes to 306, meaning Mrs. May can remain in office.

There was no effect on US financial markets.

Tuesday, UK lawmakers defeated Prime Minister Theresa May’s BREXIT deal Tuesday, triggering political chaos that could lead to a disorderly exit from the EU or even to a reversal of the Y 2016 decision to leave.

After Parliament voted 432-202 against her deal opposition Labour Party leader Jeremy Corbyn promptly called a vote of no confidence in Mrs. May’s government, to be held at 1900 GMT Wednesday.

With the count down to 29 March, the date set in law for BREXIT, the United Kingdom is now ensnared in a political crisis, as it grapples with how, or even whether, to exit the European project that it joined in Y 1973.

The loss, the 1st British parliamentary defeat of a treaty since Y 1864, appeared to catastrophically undermine Mrs. May’s 2-year strategy of forging an amicable divorce with close ties to the EU after the 29 March exit.

Mrs. May vows to stand by her deal and Labour trying to trigger a national election, Parliament is deadlocked, with no alternative proposal.

“This deal is dead,” said Boris Johnson, the Conservative Party’s most prominent Brexiteer, who urged Mrs. May to go back to Brussels to seek better terms.

If there was any consolation for Mrs. May, it was that her internal adversaries appeared set to fight off the attempt to topple her.

The small Northern Irish DUP party, which props up Mrs. May’s minority government and refused to back the deal, said it would still stand behind May in the no-confidence vote. The pro-BREXIT Conservatives who were the biggest opponents of her deal also said they would support her.

Labour has said if it fails to trigger an election then it will look at the possibility of supporting another referendum.

The EU said the BREXIT deal remained the best and only way to ensure an orderly withdrawal. Austrian Chancellor Sebastian Kurz said there would be no further renegotiation.

“The risk of a disorderly withdrawal of the United Kingdom has increased with this evening’s vote,” said EU Commission President Jean-Claude Juncker, adding that it would intensify preparations for a no-deal BREXIT.

A Labour Party spokesman said it was becoming more likely that Britain would have to ask the EU to postpone the 29 March departure date required by the Article 50 withdrawal notice.

The Great British Pound (GBP) rallied more than 1c Vs USD, on some expectations that the scale of the defeat might force lawmakers to pursue other options.

Mrs. May said she would reach out to opposition parties to forge a way ahead. But Mr. Corbyn, who wants Labour to be given the chance to negotiate with Brussels, was dismissive.

“After 2 years of failed negotiations, the House of Commons has delivered its verdict on her BREXIT deal, and that verdict is absolutely decisive,” he said. “Her governing principle of delay and denial has reached the end of the line.”

Ever since Britain voted by 52-48% to leave the EU in a referendum in June 2016, the political class has been debating how to leave the single currency bloc forged by France and Germany after the devastation of World War II, that many see as a failed experiment in socialism.

While the country is divided over EU membership, most agree that the world’s 5th largest economy is at a crossroads and that its choices over BREXIT will shape the prosperity of future generations.

“UK assets will continue to be vulnerable to the political volatility and we don’t expect this will subside until a concrete conclusion emerges,” UBS Wealth Management told clients in a note.

Many opponents of BREXIT hope Mrs. May’s defeat will ultimately lead to another referendum on EU membership, though BREXIT backers say that thwarting the will of the 17.4 -M who voted for BREXIT could radicalize much of the electorate.

“I became prime minister immediately after that referendum,” Mrs. May said. “I believe it is my duty to deliver on their instruction, and I intend to do so.”

BREXIT supporters see leaving the EU as a way to break free from a bloc they see as overly bureaucratic and fast falling behind the leading economic powers of the 21st Century, the US and China.

The UK is refusing to be governed by the orders of the old left, the people prefer chaos over Socialist elitism.

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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