The European Union agreed to grant the U.K. a three-month Brexit delay to Jan. 31, removing the risk of a damaging no-deal split on Thursday as the British government tries to end the impasse in Parliament.
Prime Minister Boris Johnson is pushing a vote in the House of Commons on Monday to trigger an early general election, saying it’s the only way to resolve the deadlock that has stopped the U.K. ratifying his divorce deal with Brussels and prolonged the uncertainty for businesses as Brexit drags on.
- EU Council President Donald Tusk announces delay in tweet; says decision will be formalized without a leaders’ summit
- French President Emmanuel Macron dropped his opposition to three-month delay, paving way for EU agreement
- Read more: What’s in a Deal? The Brexit Extension’s Key Points Summarized
- Johnson needs a two-thirds majority in Parliament to win Monday’s vote on holding a Dec. 12 general election
- Opposition Labour Party leader Jeremy Corbyn said he won’t vote for an election until the U.K. is no longer at risk of crashing out of the EU without an agreement
- Liberal Democrats, Scottish National Party are working together to try to force a snap poll on Dec. 9, reflecting a split with Labour
- Pound rises as much as 0.3% before paring gains
No U.K. Response to EU Yet (11:40 a.m.)
Boris Johnson has not yet seen EU Council President Donald Tusk’s letter on the Brexit extension so is unable to respond, the British prime minister’s spokesman, James Slack, told reporters in London.
Blaming Parliament for the Brexit delay, Slack said the prime minister’s preference would still be to leave on Oct. 31. Johnson will open a debate in the House of Commons later Monday and make the case for a general election to break the deadlock over leaving the EU.
“Parliament has blocked the timetable that would allow us to leave on Oct 31. Parliament has chosen more dither and delay,’’ Slack said. “We will have to look at the letter and then ministers will take decisions.”
No-deal Brexit planning is continuing as the action of any responsible government to be ready for all eventualities, Slack said.
U.K. Should Use Time ‘Wisely,’ EU Diplomat Says (11:35 a.m.)
As with the previous Brexit extension, the EU side hopes that the U.K. will use its extra time “wisely,” according to a diplomat in Brussels. The meeting of envoys this morning, following talks throughout the weekend, reaffirmed unity among the 27 remaining members, according to the official.
Extension Hides Bigger Threat for Johnson (11:10 a.m.)
Even if he can eventually deliver Brexit, Prime Minister Boris Johnson will have less room for maneuver as he confronts a familiar dilemma: How to sever trade ties with the European Union after four decades of membership without triggering massive disruption to British business and the economy.
Monday’s decision by the EU to delay Britain’s departure by as long as three months means Johnson will have very little time to negotiate a free-trade agreement with the bloc before the end of 2020, when the planned transition period smoothing the U.K.’s withdrawal is due to end.
EU Official: Next Step for U.K. to Approve Delay (10 a.m.)
The next step in the Brexit extension process is for the European Union to seek the U.K.’s agreement, per the conditions of Article 50, an EU official said in a text message to reporters. After that’s secured, EU Council President Donald Tusk will begin the “written procedure” to formalize the decision among the remaining 27 EU leaders, with a deadline of 24 hours, the official said.
The aim is for the process to be concluded by Tuesday or Wednesday, the official said.
It’s worth noting that under the terms of the Benn Act, which was passed by Parliament to prevent a no-deal Brexit on Oct. 31, Prime Minister Boris Johnson must accept if the EU offers an extension to Jan. 31.
EU Envoys Agree Delay to Jan. 31: Tusk (9:30 a.m.)
Envoys representing the 27 remaining European Union members agreed to the U.K. request for a Brexit extension to Jan. 31, EU Council President Donald Tusk said on Twitter. The bloc’s decision will be formalized “through a written procedure,” Tusk said, meaning that there will be no leaders’ summit.
The EU’s chief Brexit negotiator, Michel Barnier, told reporters the diplomats’ meeting was “very short, effective and constructive” as he left the room.
What Envoys Will Discuss in Brussels (9 a.m.)
Envoys from the remaining 27 EU members states debate the wording of two separate documents this morning—a six-page legal decision granting an extension, and a two-page declaration explaining the reasoning. The main points of the documents, drafts of which were obtained by Bloomberg on Sunday, are as follows:
- Brexit will take place on the first day of the month following the ratification of the Withdrawal Agreement, “or on 1 February 2020, whichever is the earliest”
- The Withdrawal Agreement isn’t up for renegotiation during the extension period. Note that EU leaders took a similar decision when they granted the previous extension in April, but broke their rule after Johnson’s government, with different red lines, took office
- The U.K must nominate a candidate for EU Commissioner after the extension is granted. However, the wording of the documents suggests that the confirmation process of the British candidate may not be finalized before the end of January, meaning the U.K. won’t actually get to have a commissioner
- The EU reminds the U.K. that it still has the right to revoke Brexit
- Finally, EU governments warn that the U.K should do nothing which is seen as sabotaging the bloc during the extension period
Johnson’s Different Routes to an Election (8:50 a.m.)
The European Union’s apparent intention to extend the Brexit deadline to Jan. 31 could yet have an impact on Monday’s vote in the House of Commons. Yet Boris Johnson still looks likely to fall short of the two-thirds majority he needs to secure an early general election. That’s because an extension on its own doesn’t satisfy the opposition Labour Party’s position that it won’t support a snap poll until the risk of a no-deal Brexit is completely removed.
But over the weekend, another option emerged via a proposal from the Liberal Democrats and Scottish National Party. They suggested amending the Fixed-term Parliament Act to set the next election for Dec. 9, which crucially would require only a simple majority to pass. The risk for the government lies in MPs trying to attach amendments to the bill, but a U.K. official later indicated such a move could be considered if it loses Monday’s vote.
There’s a final way Johnson could get his election—though it’s a longer and untested process, with significant risks. The opposition or Johnson himself could trigger a no-confidence vote in the government, which requires a simply majority to succeed. Party leaders then would have 14 days to form a new government that can win a confidence vote, with Parliament dissolved—and a general election scheduled—if all efforts fail.
Macron Backs Brexit Delay (7:48 a.m.)
French President Emmanuel Macron will agree to a Brexit extension, easing the risk of the U.K. leaving the European Union without a deal on Oct. 31, according to a French government official.
Macron has agreed a delay until Jan. 31, said the official, who asked not to be identified. With other member states already supporting the move, France’s backing paves the way for EU diplomats to sign off on an extension during talks in Brussels on Monday.
Williamson Optimistic Government Can Win Vote (Earlier)
Education Secretary Gavin Williamson said he’s “optimistic” the government can win the vote on Monday to hold a general election, noting that the Liberal Democrats and Scottish National Party, for example, “are moving to the recognition that this Parliament isn’t going to deliver anything.”
“I actually think that you’ll see quite rapid movement,” Williamson told Sky News.
Williamson was touring the broadcast studios plugging a government announcement of 400 million pounds ($515 million) of spending on schools. It’s the latest in a succession of announcements of increased expenditure on education, health and policing by the Conservatives, and a reminder the ruling party is on a constant election footing,
