Parliament Rejects May's Brexit Deal Again: What It Means And What's Next
The iShares MSCI United Kingdom Index (NYSE: EWU) and Vanguard FTSE Europe ETF (NYSE: VGK) opened slightly higher Wednesday after U.K. lawmakers voted down another Brexit deal proposed by Prime Minister Theresa May.
The proposal failed by 149 votes, representing a shrinking margin from January’s rejection.
Why It’s Important
A spokesperson for European Council President Donald Tusk said the rejection “significantly increased” the chance of a split without a deal, according to CNBC.
“We regret the outcome of tonight's vote," the spokesperson said. "On the EU side, we have done all that is possible to reach an agreement.”
The no-deal option remains the U.K.'s default unless Parliament ratifies a withdrawal agreement, according to May.
“Further negotiations with the EU are unlikely to bring a breakthrough, so a snap election and further Brexit delays are becoming ever more likely," Citigroup analysts wrote.
The EU is willing to consider a “reasoned request for an extension” to the March 29 Brexit deadline, according to Tusk’s spokesperson. An EU approval of a Brexit extension would be decided unanimously.
What’s Next
May will bring two more votes before Parliament this week. On Wednesday, legislators will vote on a departure from the EU with no deal. If that fails, they will vote Thursday to request an extension for the EU’s two-year exit procedure.
May said MPs have a "free vote," meaning MPs can vote with their conscience rather than with the party, according to the BBC.
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