What Brexit No Deal Really Means
On Wednesday, the Queen agreed to a request from British Prime Minister Boris Johnson to suspend parliament shortly before the Brexit deadline. This has nothing to do with the UK’s exit from the European Union, Johnson said, but critics point out the timing will definitely be in his favor.
What is No Deal Brexit? And what to expect from this, besides the possible chaos?
What is No Deal Brexit?
Consider this a sudden divorce. As noted by the BBC, Britain will immediately leave the European Union, as well as any of its governing bodies, including the European Court of Justice and Europol. But there is no doubt that the UK economy will be hit by the sudden Brexit.
On Wednesday, the British pound, which was vulnerable after the June 2016 Brexit vote, fell 1.1 percent following the announcement of Johnson’s plea for the Queen.
Other likely consequences of an immediate exit from the EU are as follows:
- Trade failures . UK exports will immediately be subject to EU tariffs, jeopardizing the competitiveness of its products. This will greatly affect the country’s agriculture. (And the process will likely require a ton of additional paperwork and customs.)
- Lack of food, medicine and fuel .
- Travel disruptions. “This will most likely affect aviation, currency, insurance, mobile phone roaming and passport control,” writes CNN .
Why is this happening?
Johnson has publicly denied the suspension’s connection to Brexit; in a letter to parliament, he said he plans to announce “a bold and ambitious new agenda for national legislation.” According to the Financial Times , he cannot announce this law if the current parliamentary session has not ended and a new one has not begun. (This should be done during the Queen’s speech or the opening of parliament; the speech sets out the priorities that Parliament will focus on in its session.)
But Johnson is likely pushing for a ouster so he can back out of the deal with as little criticism as possible. They will have very little time to come up with an alternative deal – or any way out, for that matter.
What happens next?
Johnson called for a five-week suspension from office after a second “sit-down” week in September (starting roughly September 9-12). Since Parliament returns from summer vacation on September 3, they have only a few days to respond. According to CNN , parliament may express no confidence in its government – which may at least postpone current events – but it is unlikely that they will receive enough support from conservative legislators. Or they could pass legislation that would extend EU membership beyond the prescribed time limit.
According to the five-week break plan, the new session of parliament will resume on October 14. And the UK will exit the EU by October 31 – regardless of the deal.