Brexit extension or not, EU needs to decide

Market Trends - 23/10/2019


Brexit is estimated to be suspended again for the third time
following the UK legislator's refusal of Boris Johnson’s timetable.





Yesterday many Members of Parliament showed their backing for
the deal, that prime minister Johnson sealed with the other 27 members of the
EU last week. But, after a vote minutes later, they declined to race through
the required bill to withdraw from the EU in three days.





The UK is now in a challenging position with the prime
minister delaying his departure Agreement Bill, which could, however, be
rejected completely. This greatly decreases the possibilities that the United
Kingdom will leave the EU on October 31, as the prime minister had promised.





Experts and media statements
report that probably the administration will try to push for an election if
Brexit is postponed till January. Possible dates for this vote may be December
5 or 12 and it will probably be the first wintertime general vote in the
country since almost 40 years ago. Many believe the probabilities of a December
vote are over 50%.





However, the primary focus
has now moved from the UK to the EU.





The other EU members are
required to choose if they will pass the extension or not. UK Prime minister
informed the EU last Saturday that the UK Parliament requires additional time,
up to the end of January 2020, to withdraw from the EU. The President of the
European Council Donald Tusk said “Following PM Boris Johnson’s decision to
pause the process of ratification of the Withdrawal Agreement, and in order to
avoid a no-deal Brexit, I will recommend the EU27 accept the UK request for an
extension".





It is not clear at this
stage if the European Union will allow the UK Parliament’s demand for an
additional expansion until January or settle on a completely different
deadline.


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