Second Vote of No Confidence as May’s Brexit Deal is Crushed by the Biggest Government Loss In History

After failing to pass her Brexit withdrawal agreement through Parliament, Theresa May, the British Prime Minister, will face another vote of confidence. She suffered a crushing defeat in the House of Commons.

Jeremy Corbyn, Labour party leader, called her into question after MPs voted 432-202 in favor of May’s Brexit bill. This defeat Corbyn described as “catastrophic” but which is certainly a historical loss for an incumbent government.

May addressed MPs after the defeat, saying that “Tonight’s vote does not tell us anything about [Parliament]’s support.”

“Nothing about the manner–or even the if–it intends honor the decision that the British people made in a referendum [that] was held by Parliament.”

Despite the crushing defeat, and now a confidence vote, May announced that she would initiate cross-party negotiations to find common ground on her Brexit withdrawal deal and to see if there’s a solution.

On Wednesday, May will make her case to Parliament for her government to remain in power. Corbyn will ask MPs to vote against the government.

A vote of noconfidence by May’s own party , which May survived in December, would have simply resulted in the Conservative party losing its leader. However, if May loses Wednesday’s vote in no confidence, an earlier general election will likely be triggered.

Donald Tusk, a spokesperson for the European Council president, stated that the Brexit withdrawal bill’s defeat had increased the risk of disorderly exit. While we don’t want it to happen, we will be ready for it.

The political impasse in Parliament makes the fear of Britain leaving the EU on March 29th with “no deal” seem ever greater.

It appears that May will not be able to get the support she needs from enough MPs to pass the agreement.

As the clock ticks down towards Britain’s departure from the European Union, the U.K.’s political options are shrinking. A general election, which could be triggered by May’s Wednesday vote of no confidence, a second Referendum or an extension to Article 50 beyond March, seem to be the only viable avenues.

Sterling rose 1.5% to $1.29 against the dollar in anticipation of Article 50’s extension. This is a sign that traders see Tuesday’s defeat as increasing Britain’s chances of staying in Europe for a while longer.

Companies will not be helped by the political defeats and other political maneuverings in the days ahead. This uncertainty has dominated the business landscape for the past two years and is likely to continue for the foreseeable future.

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