In Dramatic Reversal, Theresa May Will Allow Parliament To Change Brexit Deal
In Dramatic Reversal, Theresa May Will Allow Parliament To Change Brexit Deal from ZeroHedge
The Brexit-related chaos of the past month sent European stocks reeling and made the pound “untradeable” (at least, for a brief time). But traders could have avoided these headaches if they had simply looked past the squabbling to understand a larger truth: Most of the squabbling between May, the Tory Brexiteers and the EU was essentially political theater orchestrated to make a revised Brexit plan where the UK achieves something closer to the “Norway-plus” model politically palatable.
And after markets were given their first peek behind the curtain earlier this week after reports that the EU wouldn’t consider a renegotiation until Parliament rejects the deal, Bloomberg has followed up with the latest indication that May’s insistence on her deal being the “best and only” deal on the table was just an example of the prime minister saying what needed to be said.
Believing that her deal stood any chance of passing would border on delusional, so any practical tactician – and by all accounts, May is nothing but practical – would, accepting this, pivot toward the next-best thing: doing “everything in their power” to strengthen the UK’s negotiating position to win more favorable terms. And it appears May has done just that.
Because, according to Bloomberg, just days after her Brexit plan was “finalized” during a meeting of EU states over the weekend, the prime minister is reportedly ready to public acknowledge a longstanding reality: That, ultimately, Parliament must be allowed to write their own deal if anything is expected to pass. And to that end, May has reportedly dropped her resistance to parliamentary rewrites, and is instead moving toward holding a “meaningful vote”, which would allow Parliament to propose amendments to her deal before voting on which amendments to accept, and which to deny, before approving the revised agreement.
Traders welcomed the news, as the pound climbed back above $1.28 to just below its highs from Tuesday.
Given the EU’s intransigence on the issue, this appears to be the best course for ensuring that the UK isn’t trapped in the trade bloc by the “Irish backstop.”
The plans were disclosed by a U.K. official who asked not to be identified, because the plans are private.Parliamentary business managers from the different parties are still hammering out the details of how the vote will be held, but the government’s aim is to produce a plan that its opponents, internal and external, can’t object to.
Officials believe that no alternative to May’s option will command a majority in the Commons either, and a series of votes on the amendments could demonstrate that. Labour members are likely to be ordered not to support a second referendum, for example.
If other options are indeed voted down, it will add force to May’s argument that hers is the only way to avoid crashing out of the EU with no deal.
For those who aren’t intimately familiar with parliamentary proceedings in the UK, here’s a rundown of how the “Meaningful Vote” would play out: