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Brexit Czech Republic Lukáš Kovanda United Kingdom News

Unfortunately for the Czech Republic, the Brexit agreement is dead

According to economist Lukáš Kovanda, the UK´s Brexit plan is basically dead. The probability of the so-called hard Brexit without any agreement has increased, and this is not good news for the Czech Republic and its economy.

editor: REMIX NEWS
author:
via: e15.cz

Even though PM May’s failure was largely expected, the defeat is astounding. More than 230 members of parliament voted against than in favor of the agreement, which corresponded with the most pessimistic estimates. At the same time, May’s defeat doesn’t give much chance for another compromise between London and Brussels.

As expected, the British pound dropped and it could be assumed that such a significant defeat will have a negative impact on American and Asian stock markets, and that Europe will follow tomorrow.

Now, PM May has three days to deliver an alternative Brexit plan. She is going to face enormous pressure from the opposition as well her own party and its coalition partner. Not to mention the media and the public.

The way in which May lost her battle is bad news for both the European and Czech economy. It is more likely there will be no deal. The highly polarized UK parliament will hardly find a meaningful consensus. Yet a no deal Brexit would be the most painful alternative, at least in economic terms. It applies to the Czech Republic as well, as the UK is its fifth largest export market.