British Parliamentarians reject Theresa May’s Brexit deal
The rejection, widely expected, was the second in a row.
The rejection deepened the country’s worst political crisis for generations, 17 days before the planned departure date.
It also puts the world’s fifth largest economy in uncharted territory with no obvious way forward: exiting the EU without a deal, delaying the March 29 divorce date, a snap election, or even another referendum are all now possible.
May might even try a third time to get parliamentary support in the hope that hardline eurosceptic lawmakers in her Conservative Party, the most vocal critics of her withdrawal treaty, might change their minds if it becomes more likely that Britain might stay in the EU after all.
While she lost, the margin of defeat was smaller than the record 230-vote loss her deal suffered in January.
“If this vote is not passed tonight, if this deal is not passed, then Brexit could be lost,” a hoarse-voiced May told lawmakers before her deal was defeated.
Sterling, which had earlier in the day fallen by two percent to $1.3005, was trading at around $1.3082 shortly after the vote.
Lawmakers are now due to vote on Wednesday on whether Britain should exit the world’s biggest trading bloc without a deal, a scenario that business leaders warn would bring chaos to markets and supply chains, and other critics say could cause shortages of food and medicines.
Supporters of Brexit argue that, while a “no-deal” divorce might bring some short-term instability, in the longer term it would allow the United Kingdom to thrive and forge beneficial trade deals across the world.
However, parliament is expected firmly to reject a “no-deal” Brexit as well, so on Thursday lawmakers would then vote on whether government should request a delay to the leaving date to allow further talks.