Published: Thu, March 14, 2019
Money | By Bruce West

Sterling gains as lawmakers expected to vote against no-deal Brexit

Sterling gains as lawmakers expected to vote against no-deal Brexit

British MPs on Wednesday voted overwhelmingly to reject an amendment which calls on the British government to pursue a managed no-deal Brexit on May 22.

"After another historic defeat for the prime minister, the United Kingdom will now have to apply for an extension to Article 50", said Labour MP Hilary Benn, chairman of the Committee. Britain would quit the EU's 500 million-strong single market and customs union and fall back on World Trade Organisation rules, which could mean tariffs on many imports and exports. The deal we've negotiated is the best and only one available. However, EU officials have said that while they might consider a delay, they won't make any further concessions to the agreement.

Europe's chief Brexit negotiator, Michel Barnier, sat down for an exclusive interview with Euronews' Daniel Cohn Bendit on Wednesday to discuss the possibility.

The new votes come after Mrs May's Brexit plan suffered a second humiliating defeat 391-242 - a margin of 149 votes, the fourth worst in British political history.

He wrote on Twitter: " I regret the outcome of tonight's #Brexitvote.

Mr Dodds said that "all of this will need to be taken together and analysed very carefully, because we're speaking at the moment without having had sight of the precise text". It rejects a no-deal Brexit at any time and under any circumstances.

"There should be an overwhelming Parliamentary majority to prevent a no-deal exit on March 29, which should lend some support to the pound", Morgan Stanley strategists said.

Thereafter, it says, "in a spirit of co-operation and in order to begin discussions on the Future Relationship, the Government should offer a further set of mutual standstill agreements with the European Union and Member States for an agreed period ending no later than 30th December 2021".

"I believe we have a good deal", May said.

Hours before a vote on the deal in parliament, May had failed to win over the main Brexit faction in her own party, while Northern Ireland's Democratic Unionist Party (DUP), which props up her minority government, said it would vote against her.

"The legal risk remains unchanged", he wrote Tuesday, noting there are "internationally lawful means" of leaving the backstop without European Union agreement. The article envisages extending the two-year withdrawal period, but only if the initiative gets a unanimous approval of the European Council. It would also mean a referendum would be held at that point, based on a choice between the deal arranged at that point, and remaining in the EU.

MPs crushed her Brexit deal for a second time last night.

An extension that would require a separate approval from the EU. While EU leaders indicated minimal interest in renegotiating the basic terms of the agreement, the changes May was able to extract from Brussels were put to a second vote on Tuesday, which Parliament also shot down.

Independent Group MP Anna Soubry told the Commons: "It's a shameful carry-on when a former chairman of the Conservative Party is whipped against to the extent she will not push that amendment to the vote".

Labour Party leader Jeremy Corbyn said he would be working across the parties to find a compromise solution that could pass in the house.

"We must take what now seems to be the more hard route but in the end the one that preserves our self-respect", said former foreign minister Boris Johnson, a favorite to succeed May if she steps down.

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