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Brexit Could Be Extended Again, Says Ireland’s Varadkar 

Hancock Says No-Deal Is Not a Credible Threat: Brexit Update

(Bloomberg) --

The U.K.’s ruling Conservative Party is in turmoil, reeling from catastrophic European elections and without a leader to determine the way forward. Candidates to succeed Theresa May are competing to show they can deliver Brexit with their rival plans for leaving the European Union.

Key Developments:

  • Health Secretary Matt Hancock said a no-deal Brexit is not a credible threat
  • Commons Speaker John Bercow warned Parliament will assert its will if the next premier tries to force a no-deal Brexit
  • Leadership rival James Cleverly says no-deal Brexit must stay an option
  • Judge rules Boris Johnson must attend court over Brexit claims
  • Scotland lays ground for independence referendum

Varadkar: Brexit Could Be Extended Again (2:50 p.m.)

Speaking in parliament in Dublin, Irish Prime Minister Leo Varadkar said all Brexit options remain open, including an extension past October, the U.K. leaving the EU with no deal or even staying in the bloc.

U.K. ‘ Front of Line’ for U.S. Trade Deal: Envoy (2 p.m.)

There could be some good news for whoever succeeds Theresa May as prime minister: Donald Trump sees a post-Brexit trade deal with the U.K. as a priority, according to his ambassador to London, Woody Johnson.

“It’s foremost in the president’s mind and he would get it done as quickly as possible,” Johnson told BBC Radio 5 Live on Wednesday. “It would be front of the line for the U.K.”

Johnson’s comments come ahead of Trump’s state visit to the U.K. next week, the last major event for May before she steps down on June 7. The freedom for the U.K. to negotiate its own trade deals was touted as one of the great boons of Brexit during the 2016 referendum campaign, but at the time, then President Barack Obama said Britain would be at the back of the queue to secure one.

“A comprehensive free-trade deal between our countries would be a huge positive for both the US and the U.K.,” Johnson said.

Johnson Must Attend Court Over Brexit Claims (11 a.m.)

A London judge has ruled that Tory leadership contender Boris Johnson must attend a court hearing to face allegations of misconduct in public office over his disputed Brexit campaign claim that the U.K. sent 350 million pounds ($443 million) per week to the European Union.

District Judge Margot Coleman said that a private prosecution attempt can proceed against the politician. “The allegations which have been made are unproven accusations and I do not make any findings of fact,” the judge said.

“This application is brought for political purposes,” Johnson’s legal team said last week, calling it a political stunt. His lawyers didn’t immediately respond to messages seeking comment on Wednesday.

Sturgeon Prepares for Scottish Independence Vote (9:45 a.m.)

In Scotland, momentum is growing to stop the country being taken out of the EU against its will.

The Scottish government published legislation for the framework to hold another independence referendum, including the provision to set the date, question and timeframe. Scottish First Minister Nicola Sturgeon last month promised to push for another vote on leaving the U.K. within two years to protect the country from the consequences of Brexit. Scotland needs the U.K. to transfer the power to hold the vote and make it legal. Prime Minister Theresa May has previously said she wouldn’t give consent.

“An independence referendum within this parliamentary term will give Scotland the opportunity to choose to be an independent European nation -- rather than have a Brexit future imposed upon us,” Sturgeon said in a statement.

While the Conservatives and Labour took a hammering in European Parliamentary elections, Sturgeon’s pro-independence Scottish National Party received a boost. It won 38% of the vote, with Nigel Farage’s Brexit Party in second place on 15%.

Stewart: Johnson Should Take Part in Debates (9 a.m.)

Tory leadership candidate Rory Stewart called on rival Boris Johnson to take part in public debates during the contest, saying his policy positions need to be heard and challenged particularly if they potentially lead to a no-deal Brexit. The BBC, ITV and Sky have said they will host live debates.

“He’s the favorite, he’s the front-runner, he’s the real big beast here, and he’s the person that all of us have to stake out our positions against,” Stewart told BBC Radio 4. He acknowledged, though, that taking part would be a risk for Johnson. “If you’re the front-runner, you’re always going to see there’s a danger that everyone will turn on you.”

May ‘Didn’t Fit’ as PM, James Cleverly Says (8:30 a.m.)

Theresa May did not have the right skills to be a prime minister, James Cleverly, a Brexit minister and Tory leadership contender, told BBC Radio 4. May was never properly scrutinized by her party before becoming leader in 2016 because she was elected after all the other candidates dropped out, he said. Cleverly -- an outsider for the leadership who is not in the Cabinet -- said Tony Blair and David Cameron were better prime ministers because of their lack of Cabinet experience.

“Theresa May went into the job uncontested and untested,” he said. “And what we found is that that as admirable as she is, and as successful as she was around the Cabinet table, as home secretary, she didn’t fit well with the role of prime minister.”

Cleverly also said he’d like to leave a no-deal Brexit as a option for negotiations with the European Union.

Hancock: No-Deal Isn’t Credible Option (Earlier)

Health Secretary Matt Hancock, who is one of 11 Conservatives currently running to replace Theresa May as leader, said the next prime minister will need to get a deal approved by this current Parliament if they want the U.K. to leave the EU on October 31.

“We have to have a Brexit policy that’s based on reality. We can’t have a general election before we’ve delivered Brexit. That means we have to deliver Brexit through this Parliament,” he told BBC Radio 4’s Today program.

Earlier:

--With assistance from Jonathan Browning and Rodney Jefferson.

To contact the reporters on this story: Alex Morales in London at amorales2@bloomberg.net;Jessica Shankleman in London at jshankleman@bloomberg.net

To contact the editors responsible for this story: Tim Ross at tross54@bloomberg.net, Stuart Biggs

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