How will the Brexit negotiations conclude?Contributor Karen Ward
As each camp in the population looks for a political party that represents its preferred Brexit outcome, the landscape of UK politics is changing rapidly.
The new prime minister is likely to meet similar challenges given the nation – and as a result parliament - remains divided over what it wants from Brexit. But investors must understand the impact “no-deal” would have on sterling, stocks and gilts versus “change of government”.
Does a new prime minister change the Brexit outlook?
The UK prime minister, Theresa May, has announced that she is stepping down on 7 June, and the process has begun to select a new Conservative leader. Will May’s successor face the same problems in delivering Brexit? We consider possible future paths.
What is the problem?
The root of the problem is that the UK’s population is divided over what it wants from Brexit. The 2016 referendum itself was relatively close, with 52% of those that participated voting to leave the EU and 48% wanting to remain. In accepting the vote to leave, the question of the form of departure persists.
Exhibit 1 below highlights the main ‘on the shelf’ options facing the UK and to what extent they meet the most commonly cited objectives in the Brexit process.
Exhibit 1: Brexit options facing the UK
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