Since Theresa May stepped down from her position in May, the world is looking at the UK. It is waiting for the announcement of the new Prime Minister. We have updated you on the voting process and touched the topic in one of our recent blog posts.
Now we want to give you a little update on the current state of the nomination process and the effects, and the next Prime Minister might have on the negotiations and the outcome of Brexit. Now the voting process is almost final, and soon the UK will have a new Prime Minister. The members of the Conservative Party will vote for their candidate later this month, and at this stage, it looks like Jeremy Hunt and Boris Johnson are facing a run-off vote.
Who will be the next Prime Minister?
This month the members of the Conservative Party will vote for the new party leader and therefore a prime minister of the UK. According to latest polls, Boris Jonson is the frontrunner, but the current foreign secretary Jeremy Hunt might be severe competition for the Brexit-hardliner Johnson. Hunt surprisingly gained more votes than Michael Gove, who had been considered to participate against Johnson in the membership vote.
The votes opened for the party members now and it is up to them to decide between Johnson or the “Brexit underdog” Hunt. The date set, to declare the next British Prime Minister is July 22nd.
How does that affect Brexit?
Johnson is firm with his Brexit politics, and he would leave the EU without a deal in October. Johnson told the BBC: ” My pledge is to come out of the EU at Halloween on October 31st,” He stated: “And the way to get our friends and partners to understand how serious we are is. Finally, I’m afraid, to abandon the defeatism and negativity that has enfolded us in a great cloud for so long and to prepare confidently and seriously for… a no-deal outcome.”
He states that market rattles and the Sterling crash would be necessary consequences, however not intended by him, essential to put the option on the table. He hopes the threat of a no deal will lead to an agreement and more willingness to negotiate from the EU’s side. Johnson is very serious about Brexit, and he definitely would start new talks, if he were elected Prime Minister. His suggestion is to ask the EU for an “implementation period,” while the status quo would be kept for a deal to be finalized after Brexit.
With Boris Johnson as Prime Minister, Brexit is very likely to happen with or without a deal. Just the consequences may vary depending on how the negotiations turn out.
Hunt, on the other hand, voted three times in favor of the Brexit Deal May negotiated. He was convinced that her deal was better than a no-deal scenario and still pursues that line. The foreign sectary is strongly concerned about the consequences of a no-deal Brexit. Hunt would try to avoid a no-deal but is prepared for it would it come to the due date without a deal with him as Prime Minister. He told the BBC that he would pull out the UK on October 31st: “I would do so, but I would do so with a heavy heart.” Hunt has a 10 point plan to prepare the country for Brexit and is including deal or no deal preparations.
What does that Mean for your Business?
Brexit happening without a deal is still a possibility, no matter if Johnson or Hunt become Prime Minister. That would mean rising costs for UK-businesses. Therefore it is worth being prepared and plan your position in the EU if you want to keep doing business and avoid rising complications.
We are happy to assist with any questions and help you to form your business in Malta or another EU country get in touch. We are delighted to provide solutions that are custom made for your needs.