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Brussels has granted a new extension to Article 50 for another six months ending on October 31, 2019. Now, its responsibility of British lawmakers to get consensus done on one divorce deal.
However, the delay of Brexit date, which was scheduled on April 12, 2019, to October 31 is a little squat period than many countries expected. There are crucial events which will undoubtedly bring the UK's divorce back to the agenda and possibly decide the fate of both of the British Prime Minister and Britain's bid to depart from EU bloc.
Although Theresa May was seeking for an extension to June 30, the long extension to Brexit granted by EU existing 27 members leaves open the chances of the UK participation in the European Union election which is scheduled in May, next month.
Meanwhile, the chief of Bank of England, Mark Carney commented that a no-deal Brexit could be less expensive than the UKâs crash out from the EU bloc accidently. While addressing a gathering of the International Monetary Fund in Washington, he added that many of the market disruption cost of the Brexit could be fixed if conservatives plan for a managed no-deal Brexit.
His words could invoke many conservative MPs who are trying to topple Theresa May as Prime Minister with a hardliner Eurosceptics willing to pursue a managed no-deal divorce of Britain from the EU bloc.
The BOE chief also said that latest approval from EU union to delay Brexit potentially until October 31, gave London's politicians to start a political process to resolve the British Parliament impasses over Brexit.
As per Mark Carney, if Brexit had taken place without any deal on either March 29, 2019, or April 12, 2019, the two dates previously decided for EU divorce, it would have so by "accident".
The BoE chief said, a no-agreement crash out from EU could create a situation like negative supply shock for Britain, something that had never taken place in any developed economies in the past 50 years. He called âBrexitâ as a "global risk" because of the aftermath affect real economic consequences for Britain and the European Union as well.
Carney also added that Bank of England had assured the stability of the core financial system in the wake of a no-deal divorce from the EU but insisted that stability risks were not the same as managing market or economic issues.
He also mentioned that; London Stock Exchange is not ready for any sudden no-deal Brexit so there could have been some significant repricing. He insisted that Brexit could pull Britain and the European economies and could spread traded tension across the world.
