Don’t be fooled – Theresa May’s Brexit plan won’t appease the markets for long | David Blanchflower
by David Blanchflower from on (#29BAJ)
The announcement that parliament will get a vote on a final deal was welcome. But the prime minister's speech does nothing to lift the fog of uncertainty
The big fear with Theresa May's Brexit speech was that the pound would tank and that the markets would respond as negatively as they had to most of her previous utterances. The opposite happened, and it rose to $1.24, up almost 3% on the day, after it had already risen on Tuesday morning on news that inflation had reached a two-year high (it fell back a cent today).
The news that the markets welcomed so warmly was that both houses of parliament would get a vote on the final deal and that May will not seek partial or associate membership of the European Union. That will prevent a bad deal, forced through by the Brexit-at-any-price Eurosceptics, which might have been on the cards without such a vote.
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