19/11/2018 - May's Premiership Still Under Threat

GBP

Britain’s former Brexit minister Dominic Raab said on Sunday that Prime Minister Theresa May’s Brexit deal was fatally flawed but she could still change course.

Raab, who resigned on Thursday saying he could not support the deal, said he would back May if there was a confidence vote and that talk of a leadership challenge was distracting when the government should be focussed on delivering Brexit.

“I still think a deal could be done but it is very late in the day now and we need to change course,” said Raab, adding that changes should be made before the deal is brought to parliament as lawmakers would not support it as it stands.

Since unveiling a draft divorce deal with the European Union on Wednesday, May’s premiership has been thrust into crisis by the resignation of several ministers, including her Brexit minister, and some lawmakers from her own party seeking to oust her.

However, Theresa May said on Sunday toppling her would risk delaying Brexit and she would not let talk of a leadership challenge distract her from a critical week of negotiations.

EUR

European parliamentary elections in May will shake up the political landscape and help Italy in its budget battles with Brussels, Deputy Prime Minister Luigi Di Maio said on Sunday.

The European Commission last month rejected Italy’s 2019 budget, saying it flouted a commitment to lower the deficit and did not guarantee a reduction in the debt, the second highest in the euro zone as a proportion of GDP.

Di Maio told Corriere della Sera daily he was confident that Rome and Brussels could avoid a collision, predicting that the Commission would take a different approach after May’s elections which might boost anti-austerity parties.

The European Commission is expected to start disciplinary steps against Rome next Wednesday, a procedure which could eventually end in unprecedented fines for Italy.

Key Annoucements

09:00 - EUR: ECB Financial Stability Review
All Day - EUR: Eurogroup Meetings