A report issues by the Institute for Government has highlighted the potential calamities that Parliament face in the wake of the Brexit vote. The report suggests that up to 15 bills will need to be enforced, on subjects such as immigration and border controls once the UK resumes power from the European Court of Justice.
To put this into perspective, the Queen’s Spring speech is expected to introduce 20 new bills, of which 15 will be entirely Brexit related leaving little room for non-Brexit related issues.
The mammoth task that the UK faces should not be downplayed, and with so much focus on replacing existing laws there’s an argument that many bills will pass through Parliament without proper scrutiny.
The shock sinking in
The Brexit dilemma is more than just an EU-exit, Parliament will either have to replicate existing laws put in place by the ECJ, or find suitable alternatives all within the Article 50 deadline of two years.
It’s difficult to image just how much of Government’s time this will require, not to mention the time required to secure overseas business investment and trade deals.
UK and Germany to agree defense pact
GBP investors will have to weigh up some difficult decisions in the coming week, the daunting task of dismantled 4 decades of EU integration and replacing it with UK law will be a difficult task in itself, with little promise or certainty over the UK’s future.
After the Pound’s initial fall against the Euro, exchange rates recovered above 1.153 on the news that the UK and Germany will sign a new defense pact.
The move signals Government are prepared to continue strong defense relations post-Brexit, as Theresa May looks to reassure European leaders that the UK plans to keep close ties once it exits the EU.
When it comes to post-Brexit negotiations GBP investors want to see that the UK plan to maintain currency relations with the European project and this move shows early signs that both sides could be loosening up on their particularly hard stance towards the vote in June.
At the same time, investors are aware that all 27 member states can veto any post-Brexit deal which makes it difficult to predict how negotiations will form.