U.K. lawmakers reject Brexit deal

The British Parliament has rejected the Brexit deal proposed by the Prime Minister Theresa May. The British House of Commons voted 432 -202 against the deal struck between Britain’s government and the EU in November.

Backstop provisions

The conservative objectors who were supporters of Brexit have also voted against the deal fearful of the “backstop” provisions. As per the Backstop provisions, Britain would leave the EU in March 2019, single market in December 2020, but stay in the customs union for longer.
The Backstop provisions would keep trade rules between the world’s fifth-biggest economy and its largest export market almost unchanged for a transition period running to the end of 2020. The conservatives fear that these provisions would keep the UK too closely bound by EU regulations.

What’s next?

The UK has now three options to choose from since UK is bound to leave EU by March. The options are:

• UK can now to reach to EU to further modify the agreement. But this doesn’t seem likely because EU leaders have made it clear that it was the best compromise available.
• The other option is the exit without any deal. This would be a doomsday scenario which would trigger a massive recession in Britain and markedly slow the European Union’s economic growth. This doomsday scenario would become inevitable if British parliament votes against the deal
• There could be another referendum on Brexit deal in Britain. Demands for another referendum is also gaining momentum since the previous one favoured the Brexit with a narrow 52 to 48 per cent

The best possible practical option which is now doing rounds in Britain is to extend Britain’s departure date. But the EU diplomats warn that extension would only be for a few months.

Month: Current Affairs - January, 2019