The United Kingdom will again hold general elections tomorrow with Brexit on the horizon. “If the conservatives of Boris Johnson obtained the majority in the Parliament, the agreement of exit of the prime minister would return to the agenda of the new House and probably it would be approved. The United Kingdom will then begin the transition period (which in principle extends until the end of 2020) during which the future relationship with the EU will be defined,” they indicate from the Investment Desk of Bank Degroof Petercam. So, would an exit without agreement be definitely avoided?
“Not necessarily. In the short term, a Brexit without an agreement is still possible if, after the elections, a divided Parliament without a majority cannot approve an exit agreement before January 31. In addition, if the conservatives do not get the majority, the situation will be more confusing: “a pro-remain coalition between the Labor Party, the Scottish Nationalist Party and the Liberal Democrats would be possible, but not certain. In fact, in this case, a second referendum or even the cancellation of Brexit would be possible again,” they warn from Bank Degroof Petercam.