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Brexit Bulletin: Fourth Time Lucky?

Brexit Bulletin: Fourth Time Lucky?

Days to Brexit deadline: 93

(Bloomberg) --

Today in Brexit:  With the U.K.’s exit officially delayed, Johnson is set to try a new method of securing the election he craves.

What’s happening? Boris Johnson has failed for a third time to trigger an election to break the Brexit impasse. The signs are he won’t wait too long to try again.

In a vote MondayParliament rebuffed the prime minister yet again, as Johnson fell short of the super-majority of two-thirds of MPs needed to secure a snap poll. Today, he’s set to pursue an easier legal route, proposing a one-line bill that will change the date set in law for the next election to Dec. 12. That will need only a simple majority in the Commons — a possibility given that the Liberal Democrats and Scottish National Party have proposed a similar bill, and Labour hasn’t yet ruled out backing this one

Johnson’s shift to Plan B came on the day his promise to leave the EU on Oct. 31 officially fell apart. European governments agreed to extend the deadline from Oct. 31 — the date the country had been due to exit the bloc — to Jan. 31. While the U.K. can leave earlier if it ratifies a deal, the three-month delay allows a clear window for British politicians to put their rival visions for Brexit to voters in a general election.

The prime minister is in this predicament after he failed to get Parliament to agree to rush his Brexit deal into law. He has made clear he is giving up on trying to get his accord accepted before an election, saying there is “no support” among MPs for pushing through the law implementing his divorce agreement in the short time available. Parliament is broken and “dead,” and needs to be dissolved, according to Johnson and his team.

The delay has other consequences.  The government has halted Operation Yellowhammer, a plan designed to prepare the country for a no-deal Brexit, and a high-profile advertising campaign urging people to get ready for Brexit on Oct. 31 has also been placed on pause. Meanwhile, thousands of 50-pence coins minted to commemorate the U.K.’s exit at the end of this month will now be melted down, Bloomberg’s Jess Shankleman and Alex Morales report.

Today’s Must-Reads

Brexit in Brief

University Challenge | Despite concerns to the contrary, a vote on Dec. 12 won’t prevent students from voting, Stephen Bush writes in the New Statesman.

Extension Benefits | A Brexit extension will give the U.K. and EU more time to try to resolve residual risks to the financial system from a no-deal split, according to Nausicaa Delfas, an executive director at the Financial Conduct Authority.

Cautious Welcome | U.K. business leaders on Monday expressed relief that a no-deal Brexit had been avoided, but renewed warnings that yet more delays risked further denting companies’ investment plans.

Carney Complications | The extension also means that Bank of England Governor Mark Carney’s exit date of Jan. 31 now coincides with the Brexit deadline, raising the prospect that he may yet again have to put off his own departure.

People’s Vote Infighting | People’s Vote, the umbrella group for organizations pushing for a second referendum on Brexit, descended into disarray Monday amid a war of words between leading officials. 

Want to keep up with Brexit?

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To contact the editor responsible for this story: Caitlin Morrison at cmorrison59@bloomberg.net, Leila Taha

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