Brexit saga continues: PM May & Cabinet made no further progress on Irish Backstop

As we get set for a new trading week, albeit with the US out on holiday in honour of Martin Luther King Jr. Day., there are a few noteworthy headlines in the weekend press including, U.S. government shutdown is now a major risk for the US dollar; (DXY capped by 50% Fibo retracement, as well as Brexit. 

The saga continues. Following a humiliating defeat last week when UK's Prime Minister May lost the vote on her Brexit deal in The Commons which gave rise to a leadership challenge by the opposition leader, Jeremy Corbyn, of which the Prime Minister subsequently won,  he is now moving to Plan B and needs to present the next stage of her plan in a “neutral motion" on Monday as she seeks to steer Britain out of the EU with a deal. 

However, there are weekend headlines reporting that there are attempts by fellow MPs to "ambush" her statement on Monday with amendments aimed at stopping a no-deal Brexit, as well as paving the way for “indicative votes” to show whether any proposal can command a parliamentary majority, The Guardian reported. For instance, "Yvette Cooper, chair of the home affairs select committee, is planning to put down a tightly worded amendment to give time for a bill which would give parliament the power to back an extension of article 50."

More from the Guardian's article: 

  • "A No 10 spokesman said there was deep unease at the wider implications of such amendments. “Any attempt to remove the government’s power to meet the legal conditions of an orderly exit at this moment of historic significance is extremely concerning,” he said."
  • “This news should serve as a reminder to those MPs who want to deliver Brexit that they need to vote for it, otherwise there is a danger that parliament could stop Brexit.”

Good Friday agreement could be the solution

Worryingly, another weekend news, and something that should upset the strength in the pound, especially following the UK's retail sales miss, is that there have been no solutions' to Irish backstop in May's more recent Brexit call with her cabinet. May was reported to have held a conference call with her divided cabinet from the country retreat of Chequers on Sunday evening, but Cabinet sources said there were “no actual solutions” proposed during the call. Indeed, she will need to propose changes to the backstop if she is to try and win over the DUP and Tory rebels and then take the proposals to Brussels. So, could amendments to the Good Friday agreement be the solution?

 

 


 

 

 

 


 

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