What has happened in UK over the last 24 hours?
- by Anna K.
It is only natural that the situation there, as well as the future of pound and Brexit are going to occupy our minds today. After all, we are looking at one of the biggest political crisis in modern history, and we have to make heads or tails out of this situation.
Right now the situation is paused, but it is totally possible that we are going to see the conflict go deeper instead of being resolved today. It is not yet clear whether MPs and Prime Minister have come to some kind of conclusion yet or are we going to be subjected to the next round of the conflict today. Let’s try and see what happened.
Yesterday changed all the power distribution in the UK.
Boris Johnson’s plan to go through with rough and no-deal Brexit at any cost has met a very strong opposition in the Parliament from both – the opposition itself and from Conservative party [Johnson’s party] as well. MPs went as far as to vote 327 to 299 for the bill that requires Johnson to ask EU for delaying Brexit as there is a very high chance of no-deal divorce. According to the bill Johnson is to get the delay out of EU until October 19.
And, of course, the Prime Minister didn’t like the perspective of having to stay in the EU until January 31, 2020.
Instead, he stated that the snap elections were on the way as it seems that he found it impossible to work with the government that doesn’t exactly support him, his decisions and his views on no-deal Brexit. Johnson said that he is postponing this Parliament from work and that he is setting the elections somewhere October 15. That is, of course, if the Queen Elisabeth II is going to allow it.
But, the parliament voted NO on this question as well. And Johnson needs at least 2/3 of the MPs to support his decision in order to push snap general elections through.
So. What are we working with here? With all of the turbulence that we see today, it is very hard to understand why GBP has not only withstood the pressure overnight, but also grew pretty fast and pretty unexpectedly when we all thought that the fall was coming.
Johnsons has been stirring up the situation around GBP ever since he started to occupy the office of PM, but this reaction of GBP towards political changes startled everyone. Right now it is unclear how Johnson is going to postpone the effect of the bill passed by MPs. Of course, he can just ignore it and never ask Brussels for the delay, but I am pretty sure that it is going to be unconstitutional. It seems that Prime Minister has no other way other than to just follow the decision of the Parliament.
The crisis is getting worse and worse as we go. But GBP seems to survive just fine through it. At least for today.