Brexit Bulletin: Back from the Brink?
Brexit Bulletin: Back from the Brink?
(Bloomberg) -- Today in Brexit: By one vote, MPs edge the U.K. away from a no-deal rupture.
The Brexit pendulum has swung back towards a softer departure.
In Parliament on Wednesday, shortly before midnight, MPs passed legislation to block a no-deal Brexit and take Britain further away from a disorderly exit from the European Union. The bill — which mandates Prime Minister Theresa May to seek an extension to Brexit day — passed the House of Commons by a single vote. It will move to the upper chamber on Thursday, where it is expected to pass.
The bill was the latest in a line of moves aiming to ensure close U.K.-EU ties after Brexit, and destroys the dream of some pro-Brexit Conservatives for a clean break with the bloc as soon as next week. Many MPs were furious that the bill was rushed through in an express procedure without the usual scrutiny.
It was not the only bitter pill they had to swallow on Wednesday. Earlier, waving away howls of Conservative dismay, May indicated she would continue to work together with opposition Labour Party leader Jeremy Corbyn to seek a new Brexit blueprint. That move did not go down well with the Tory faithful.
As Tim Ross, Robert Hutton and Alex Morales report, the pair met for more than an hour on Wednesday in talks that both sides described as “constructive.” Corbyn said the discussions had been “useful but inconclusive.” A spokesman for May said both sides showed “flexibility and a commitment to bring the current Brexit uncertainty to a close.”
Nevertheless, two government ministers — Nigel Adams and Chris Heaton-Harris — quit in protest. That brings the number of resignations since the 2017 election to 33, and The Sun reports today that 15 more ministers — including 5 in the cabinet — could also be on the verge of resigning. Still, May insists she’s been forced into the compromise by hardline Brexiteers refusing to back her deal.
Meanwhile, the Independent reports that the talks could prove problematic for the Labour Party too.
For all the more positive noises, time is short. May needs to be able to present a new plan to EU leaders at a summit in Brussels on April 10 to persuade them to give the U.K. more time to prepare to leave the bloc. European leaders have already agreed to extend the Brexit deadline once, and the Sun reports May is now expected to request a further delay of nine months.
Today’s Must-Reads
- The EU increasingly sees a long Brexit delay as the most likely outcome of an emergency leaders’ summit next week, even though it’s neither side’s preference, Bloomberg’s Ian Wishart and Dara Doyle report
- Meanwhile, the EU could allow Ireland to maintain an open border with Northern Ireland in the immediate aftermath of any no-deal Brexit
- Speaking in a BBC interview, influential Attorney General Geoffrey Cox said he could live with a compromise that saw the U.K. staying in the EU’s customs union
Brexit in Brief
Hammond Comments| In an interview with ITV’s Robert Peston, Chancellor of the Exchequer Philip Hammond called the idea of a new referendum “perfectly credible” — a view he’s articulated before. The Chancellor also said that “both parties have to give something up” if they are find a solution, and hinted that the next extension to Brexit may be a long one, while saying that the U.K. should be allowed to leave earlier if it passes a deal.
On the Markets | Sterling firmed up after Brexit appeared to get softer, although the currency held well within Wednesday’s trading range from the prior day. The pound climbed as much as 0.2 percent to $1.3181 in Asia trading Thursday.
Carney Warning | Bank of England Governor Mark Carney waded back into the Brexit debate Wednesday, telling Sky News that the the risk of a no-deal was now “alarmingly high,” and describing some claims about how the U.K. could manage such a situation as “absolute nonsense.”
Services Slump | Britain’s Brexit turmoil inflicted further damage on the economy last month as the nation’s huge services sector shrank for the first time in more than 2 1/2 years.
French Benefit | France is already reaping some Brexit benefits, with the number of British investment projects on French soil rising 33 percent in 2018.
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To contact the editor responsible for this story: Adam Blenford at ablenford@bloomberg.net, Leila Taha
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