The UK continues to struggle in its efforts to come up with the right Brexit formula for a deal with the EU as there are just 193 days left before the due date. Prime Minister Theresa May has signaled that she will be the difficult woman she advertised she will be in the current negotiations. While that may come to be, it could cost her the Prime Minister job at the October Tory party conference. And it could mean the start of a serious economic crisis for the country. The problem is difficult enough that there are increasing calls for a second referendum on the issue, calls from more and more prominent voices.
It is quite possible another referendum will be called. The outcome for a “remain” vote is by no means guaranteed. If it is a remain win, the whole Brexit discussion will disappear. If it is a “get out” vote the whole discussion will get more heated. There is a meeting scheduled between the UK and EU over the weekend in Salzburg, the first such meeting since June. It appears that in some areas a deal is ready. One of the most contentious ones is the one about the Irish border. Both sides seem to agree that a soft border is the right approach.
Then there is the issue of the City and its future. Increasingly the financial community wants the City to keep functioning as it has. The mayor of London, Sadiq Khan called for a public vote on a Brexit deal, saying the divorce poses a threat to living standards, national security and business. The British Chamber of Commerce lowered its forecast for the U.K. economy for the next two years, citing a weaker outlook for trade and investment on uncertainty over Brexit. It expects growth of 1.1% this year, down from a previous forecast of 1.3%, and cut its 2019 outlook to 1.3% from 1.4%.
Problem is that time is running short and a decision is necessary now.