UK: Lack of progress on Brexit - Rabobank

According to analysts at Rabobank, the recently held local elections in England and Northern Ireland had an expected results and lead to a breakthrough in Tory-Labour talks on a desired Brexit outcome.

Key Quotes

“There has however been a lack of progress, and talks could even collapse.”

“The UK has confirmed it will hold European Parliament (EP) elections on 23 May.”

“The government’s new aim is to get the Withdrawal Agreement ratified before the instalment of the new EP on 2 July.”

“The pressure on Prime Minister May to resign mounts, but attempts to remove her from her function have failed so far.”

“However, the risk of a forced leadership change or a cabinet fall persists and is likely to rise following the EP elections on 23 May, an important milestone in that sense.”

“Meanwhile, we still see an orderly Brexit as the most likely outcome, but the slow progress in Tory-Labour talks is concerning.”

“A series of parliamentary votes on various Brexit outcomes can be an alternative way forward.”

“Given the gridlock on Brexit in British politics the odds of a Hard Brexit remain high.”