The U.K. parliament is suspended for 5-weeks, what next?

Market Trends - 11/09/2019


For five weeks the U.K.
Parliament is closed. The current political situation created more problems
than solutions and experts are now concentrated on what could happen next in the
U.K while the Brexit deadline approaches. The closing of the Parliament will
continue up to October 14. The postponement signals the conclusion of one
legislative session and the beginning of the next, and it’s common for it to
take place at this time of the year.





Nevertheless, the current
closing, which started in the first hours yesterday is more problematic than
most, because of the extension but also because of the high anxiety in the U.K.
government over the management of Brexit.





Now we can say that the U.K.’s
governmental establishment has been in confusion since the referendum of 2016
regarding the EU membership. The Parliament marked the change of the prime
minister last July determined for the United Kingdom to withdraw from the EU on
October 31.





Prime Minister Boris Johnson’s
government announced that he want to leave from the EU with or without a deal
and that divided his government and Parliament while the last week legislators
took control of the parliamentary affairs, and voted to prevent a no-deal
Brexit resulting in the pressure on the prime minister to request for an
additional extension to the departure of the U.K.





Johnson received additional
losses, with important departures from his government, including that of his
brother who stated he was split between “family loyalty and national interest.”





Now Parliament is paused for
five weeks and will return only days before the EU Council summit on October
17. That will be only a couple of weeks away from the currently offered Brexit
withdrawal date. As for now, the United Kingdom is yet expected to leave the EU
on October 31 whether it has a settlement or not. A preponderance of Parliament
voting to prevent a no-deal Brexit does not suggest that it will not still
occur.


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