UK Prime Minister Suffered Massive Defeat in Brexit Deal: What Next?

  • Jan 16, 2019 GMT
  • Team Kalkine
UK Prime Minister Suffered Massive Defeat in Brexit Deal: What Next?

On 15 January 2019, UK Prime Minister Theresa May suffered a historic defeat after British MPs rejected Brexit deal by voting 432 to 202 against the deal. It is expected that this historic defeat could trigger a vote of no confidence in May’s Government which might have impact in the upcoming General Election.

Commenting on her defeat, Theresa May said that the House has spoken, and the government will listen, however, it does not tell anything about what it does support. Many MP’s who voted against the May’s deal believes that May’s plan was bad for the country. It is expected that the exit of Britain from the European Union which is scheduled at the end of March 2019 could lead to significant disruption.

It is expected that the Brexit will result in significantly affecting various sectors of the UK including UK Airline Sector. Earlier EU had laid out its unfaltering no-deal contingency action plan according to which the air traffic between the EU and UK will be disrupted after 29 March 2019 which means that airline companies need to have a majority of EU capital to maintain their operation in European Union.

Theresa May was under fire from both "Remainers" and "Brexiteers" who did not like how May was handling things, and as per the opposition Labour Party leader Jeremy Corbyn the delay and denial of Theresa May has led to this disaster.

Many Brexiteer were not happy with the inclusion of a “backstop” which is like a safety net that keeps Britain in a customs union with the European Union if there is no trade deal made after March. Many Brexiteers believe that the backstop could have resulted in Britain never actually leaving EU as there was no proper unilateral exit mechanism in place.

Earlier, EU wanted this controversial backstop to hit only Northern Ireland, but Theresa May rejected this proposal and called it utterly unacceptable, instead she proposed to apply backstop on the entire UK. However, many conservative MPs of the Westminster were not in favor of this idea as they don’t appreciate the idea of the UK being tied to European Union rules for a long time.

After the announcement of May's defeat, a spokesman for EU President Donald Tusk informed that the EU-27 will remain united and responsible and it will try to reduce the damage caused by Brexit. This historic defeat has also not only made May's future unclear but also Brexit's as it is expected that Brexit will lead to chaos in the economy of Britain.

This year is significantly important for the United Kingdom and March 29 is going to be a pivotal point in the history of UK economy as well as the Rest of the World.  The ambiguity and speculation around Brexit have made UK sterling very volatile as many investors have restricted themselves from trading in the UK as they are waiting for Brexit to happen.

With Bank of England reducing the interest rates to a historic low level, the spotlight is back on diverse investment opportunities. 

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