After an extension of the negotiation period. The British Prime Minister Theresa May announces resignation of her post last Saturday, May 25th. This message shook the continent and overshadowed the EU elections. However May’s resignation was no surprise, it leaves the UK with a lot of open questions and the cards in the UK but also in the EU are being newly mixed and we are wondering how May’s resignation and the current climate in the EU would mean for Brexit and the effect on businesses.
Whom would the next UK Prime Minister be? What would that mean for the outcome of the Brexit negotiations? Moreover, of course, we are wondering what this new situation would mean for the commerce between the UK and the EU, especially for British companies and individuals.
What Does May’s Resignation Mean for Brexit?
Last Saturday British Prime Minister Theresa May announced the resignation of her post. After she failed attempts to reach a Brexit agreement and get support within her peers, she decided to hand this responsibility over to her successor. She follows the line of Prime Ministers that have been defeated by the negotiations.
May stated: “It will be for my successor to seek a way forward that honours the result of the referendum. To succeed, he or she will have to find consensus in Parliament where I have not. Such a consensus can only be reached if those on all sides of the debate are willing to compromise.“
The Conservative Party will elect her successor. The party hopes for him or her to be in place by the End of July. May will still serve as PM until then, but she will quit as Conservative Leader on June 7th. A Leadership contest will hold place now. That means that any Tory MP could stand, they just backing from two colleagues in the Parliament. There are however speculations on who will follow May as Prime Minister.
This will also affect the outcome of the Brexit negotiations profoundly as the new Prime Minister would lead them and present possible plans and strategies.
Apart from May’s resignation, the current EU election is another factor that could have an impact on Brexit. The next couple of months will be a deciding moment for the Brexit developments.
Who is to Follow May on the Brexit Journey?
Nominations for the new candidate can be submitted until June 10th. Any Tory Member of Parliament can stand for the position as longs as two of their parliament colleagues back them. After the nominations close in June all the 313 conservative MPs will vote for their candidate. The voting process will be repeated several times until just two candidates are left, after they present their case and answer questions, all party members vote for the Prime Minister.
Polls suggest that the Boris Johnson, Dominic Raab or Michael Gove are the three top candidates. Depending on who will be chosen as new Prime Minister by the Conservative Party, Brexit negations will move forward. Both a no-deal or a new referendum is now as likely as ever.
Tendencies are leaning towards a more hardliner as May had been criticized for making too many compromises with the EU. Candidates like Boris Johnson commented for instance that the UK would leave the EU in October no matter with there would be a deal or not.
So no matter whom the Conservative Party will choose in July, it is recommended to take Brexit preparations for businesses and individuals, if you want to keep your ties to the EU.
What Happens With Brexit Now?
After the PMs resignation and the EU elections, last weekend both the UK and the EU are pushing results. Politicians and Citizens are pushing agreements and outcomes. That could mean that fronts are toughening up, and this might lead to tougher negotiations, and in the end, it could mean a no-deal Brexit.
At the moment, anything is possible, and there is still a lot of room more plans and different outcomes. Nevertheless, it is not getting easier for May’s successor, and Brexit is still the dominating topic. The EU is tired of postponing the due date, according to the head of the EU Parliament Junke. The UK also wants to settle on an agreement that is beneficial for them.
Nothing is guaranteed, and the following months will be very deciding for many businesses and individuals.
How You Can Prepare for Brexit
No matter if you are business owner, a business consultant or if you want to keep living and traveling to the EU, it is smart to take actions now and cover yourself for any possible Brexit outcomes. Malta, Ireland and other EU countries offer possibilities for keeping your feet in the EU even though the UK leaves.
Here at Blue Consulting, we are working closely with local authorities and you to assure the best possible solution for your Brexit problem. No matter if you look for a solution for your clients, your business, or your residency. Reach out now, and we will find the best solution for you!