Yahoo Finance Brexit can still be delayed, cancelled, or a no-deal despite May's new agreement
UK prime minister Theresa May just sealed a ‘new’ deal with the European Union over Britain exiting the remaining 27-nation bloc. However, considering the contention over the ‘Irish backstop,’ there is a distinct possibility that Britain could still either exit the EU without a deal, delay the exit, or cancel Brexit altogether.
Late last night, May and her Brexit secretary Stephen Barclay secured a new agreement with EU chief Jean-Claude Juncker, which included ensuring that there will be “no indefinite backstop” — the key sticking point for many hard-line Brexiteers who May must win over.
She said the new agreement — or “instrument” — could be used to start a formal dispute against the EU if it tries to keep the UK tied to the backstop. The “Irish backstop” is an insurance policy that will ensure there is no hard border in Ireland.
However, there is potentially a long road ahead for Britain as there are a number of hurdles that need to be overcome in order for Britain to leave the EU with a deal in place.
READ MORE: Brexit explained: what does the Irish backstop mean?
Today (12 March), UK parliament will vote on whether to accept May’s Brexit deal or not. Remember, in November last year, the EU approved May’s Brexit deal but her agreement with the bloc was unceremoniously rejected by members of her own party, as well as the opposition.
If they pass it, that means Britain will leave the EU under the parameters of that deal on 29 March, as planned. However, if they reject the deal, that kickstarts another set of possibilities.
The first will be a vote on Wednesday on whether Britain should leave the EU without a deal. If Members of Parliament (MPs) vote for a no-deal that means the UK will leave the bloc on 29 March without any rules of regulations in place to replace those that were in place during the membership of the EU. That is the worst case scenario for the economy because no one will know how to operate in the vacuum of no distinct rules and regulations surrounding trade or immigration.
If the no-deal option is rejected, there could be a third vote on Thursday on whether Brexit needs to be delayed in order to secure a new deal. However, even if the Article 50 — the notification that Britain will leave the EU — extension is granted, Juncker said last night that “it’s this deal or Brexit might not happen at all.” If the extension is rejected, then Britain is back to leaving the EU without a deal on 29 March.
READ MORE: Brexit latest: Theresa May agrees legally-binding changes to Irish backstop
