UK: Another election looming? – ING
Analysts at ING suggest that there are two reasons why another vote could occur: either if neither major party can reach an agreement with smaller parties, or if a newly formed government proves to be too fragile.
Key Quotes
“In either case, the Fixed Term Parliament Act means an election would be triggered by a no-confidence vote by MPs. There would then be two weeks whereby the government must subsequently win a confidence vote if it is to stop the election from taking place. If that fails, an election would take place 25 working days later.”
“Potential impact on Brexit
It’s impossible to say what another election would mean for Brexit in the long-run. But the loss of time in the Article 50 process could be detrimental to the UK’s Brexit negotiations and would intensify the need for a transitional deal.”
Author
Sandeep Kanihama
FXStreet Contributor
Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.
