Parliament Votes To Delay Brexit

GBP

Last night Parliament overwhelmingly voted to seek a delay in Britain’s exit from the European Union, setting the stage for Prime Minister Theresa May to renew efforts to get her divorce deal approved by parliament next week.

Lawmakers approved by 412 votes to 202 a motion setting out the option to ask the EU for a short delay if parliament can agree on a Brexit deal by March 20 — or a longer delay if no deal can be agreed in time.

The short delay envisaged in the motion could last until June 30, but the longer extension is not currently time-limited. Either timeframe would require unanimous approval from the other 27 EU members, whose leaders meet in a summit next Thursday.

Before parliament voted in favour of a Brexit extension, Finance minister Philip Hammond said he could free billions of pounds for extra public spending or tax cuts, provided parliament resolves the Brexit impasse. Hammond said he could relax his grip on the public finances if they spared Britain the shock of leaving the world’s biggest trading bloc without an agreement.

Hammond stated that he now had 26.6 billion pounds of fiscal “headroom” that he has earmarked as a potential war chest for helping Britain’s economy up from a previous estimate of 15.4 billion pounds.

Key Announcements

10:00 - EUR: Eurozone Core CPI (Feb) expected to be unchanged at 0.3%
14:00 - USD: Michigan Consumer Sentiment (Preliminary) Expected to be higher at 95.30