Britain in Brexit chaos: parliament rejects May’s EU deal again

LONDON (Reuters) – British lawmakers crushingly rejected Prime Minister Theresa May’s deal to quit the European Union on Tuesday, thrusting Brexit into turmoil just 17 days before the planned departure date.

MPs voted against May’s amended Brexit deal by 391 to 242 as her last-minute talks with EU chiefs on Monday to assuage her critics’ concerns ultimately proved fruitless.

The vote puts the world’s fifth largest economy in uncharted territory with no obvious way forward; exiting the EU without a deal, delaying the March 29 divorce date, a snap election or even another referendum are all now possible.

May might even try a third time to get parliamentary support in the hope that hardline eurosceptic MPs in her Conservative Party, the most vocal critics of her withdrawal treaty, might change their minds if it becomes more likely that Britain might stay in the EU after all.

While she lost, the margin of defeat was smaller than the record 230-vote loss her deal suffered in January.

MPs will now vote on Wednesday on whether Britain should quit the world’s biggest trading bloc without a deal, a scenario that business leaders warn would bring chaos to markets and supply chains, and other critics say could cause shortages of food and medicines.

May said the government would not instruct her own party’s MPs how to vote. An opposition Labour Party spokesman said this meant she had “given up any pretence of leading the country”.

IMPASSE

The prime minister, hoarse after Monday’s late-night talks, told MPs: “Let me be clear. Voting against leaving without a deal and for an extension does not solve the problems we face.”

She said parliament was now at an impasse: “Does it wish to revoke Article 50 (announcing intention to leave the EU)? Does it want to hold a second referendum? Or does it want to leave with a deal, but not this deal?”

Sterling, which had earlier in the day fallen by 2 percent to $1.3005, was trading at around $1.3086 shortly after the vote. [GBP/]

Supporters of Brexit argue that, while a “no-deal” divorce might bring some short-term instability, in the longer term it would allow the United Kingdom to thrive and forge beneficial trade deals across the world.

British Prime Minister Theresa May reacts after tellers announced the results of the vote Brexit deal in Parliament in London, Britain, March 12, 2019, in this screen grab taken from video. Reuters TV via REUTERS

However, parliament is expected firmly to reject a “no-deal” Brexit as well, so MPs would then vote again on Thursday – on whether government should request a delay to the leaving date to allow further talks.

Both May and the EU have already ruled out any other changes to the deal, struck after two-and-a-half years of tortuous negotiations.

“NO THIRD CHANCE”

“There will be no third chance,” European Commission President Jean-Claude Juncker said on Monday. “There will be no further interpretations of the interpretations, no further assurances of the reassurances if the ‘meaningful vote’ tomorrow fails.”

A spokesman for European Council President Donald Tusk said he regretted the outcome of the vote, which had “significantly increased the likelihood of a ‘no-deal’ Brexit”.

He said the EU would expect a credible justification for any request to delay Brexit.

Britons voted by 52-48 percent in 2016 to leave the EU but the decision has not only divided the main parties but also exposed deep rifts in British society, bringing concerns about immigration and globalisation to the fore.

Slideshow (14 Images)

Many fear that Brexit will divide the West as it grapples with both the unconventional U.S. presidency of Donald Trump and growing assertiveness from Russia and China, leaving Britain economically weaker and with its security capabilities depleted.

Supporters say it allows Britain to control immigration and take advantage of global opportunities, striking new trade deals with the United States and others while still keeping close links to the EU, which, even without Britain, would be a single market of 440 million people.

Additional reporting by Michael Holden; Editing by Giles Elgood and Kevin Liffey

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