The UK’s path towards a formal schism with Europe hit a slight roadblock today after a key vote in the country’s Supreme Court. While expected, the Supreme Court ruled against Theresa May’s government by a margin of 8 to 3, meaning that Parliament must be given a vote before Article 50 is triggered, initiating in a former exit from Europe.
To unlock the Asian market, register now to the iFX EXPO in Hong Kong.
Article 50 outlines a country’s options for withdrawing from the European Union, which can be accomplished via its own constitutional requirements. The Article itself was installed back in 2009 under the Lisbon Treaty in a bid to make the EU more democratic for its constituents.
ACY Securities Supports ASIC’s Product Intervention OrderGo to article >>
As the first country to formally explore and pursue its options for withdrawing from the EU, the UK’s vote today follows on the heels of a back and forth since the Brexit referendum last year. However, the Supreme Court’s ruling today decrees that Theresa May will not be able to open a dialogue with the EU until MPs get a vote or provide their backing.
On the Clock
Today’s ruling was expected, and had been the cause of much opposition in recent months. Ultimately, Parliament will be given a voice, as the majority of justices cited a lack of vote from Parliament would reflect ‘breach of constitutional principles stretching back many centuries’, according to a recent report on BBC.
On the heels of the ruling, the next step will be for the UK government to bring forward legislation to Parliament. Consequently, the UK’s government will have approximately two months to pass the legislation through both the Commons and the Lords, thus triggering Article 50 by the end of March.
The GBP/USD was devoid of any major moves today on the news and at the time of writing has settled at 1.248, down -0.27% during European trading Tuesday.