Both Boris Johnson, Secretary of State, and David Davis, chief Brexit negotiator, resigned on Monday. This happened after Theresa May, UK’s Prime Minister, secured her cabinet’s support for a soft Brexit blueprint over the weekend. The Pound rose as a result and British business lobby chambers seemed pleased with the draft. In contrast, David and Johnson saw the proposal contradict with their convictions favouring a hard Brexit, forcing them to step down.
Why does it matter?
Disappointed members of May’s Conservative Party are expected to push for a vote of no confidence this week. It’s uncertain whether the vote will secure the required 159 votes. If it were to succeed, May would be toppled and the UK would slide into crisis. In case the vote fails, May will have successfully pushed through her soft Brexit proposal – for now. The next few days will be important not only for the UK but also for its future relationship with Europe.
Last weekend’s Brexit blueprint revolves around a new UK-EU free-trade zone with identical regulations for goods. Financial institutions in London were warned that they were likely to lose existing levels of access to the EU market. Officials in the EU welcomed the latest developments. They hope to move forwards with settling the precise divorce terms. More so, they intend to draft the basic structure of a future trade deal by the end of the year.