Whither Brexit?

am-brit-flagMore than three months after British voters elected to extricate their economy from the European Union, Brexit still hasn’t actually happened.  What’s going on?

Apparently nothing more than a careful process designed to minimize damage on both sides of the English Channel.  British Prime Minister Theresa May recently announced a target of late first quarter 2017 as the time she and Parliament will finally pull the trigger and invoke Article 50 of the EU’s Lisbon Treaty.

When that happens, it will, by contract, start two years of negotiations on exactly what the economic relationship between Britain and mainland Europe will become.  At the same time, however, May says she plans to introduce “Great Repeal” legislation next year that will convert all existing EU laws into U.K. legislation.  Parliament will also have to repeal the European Communities Act of 1972.

But will there actually BE a Brexit?  A group of over 1,000 British barristers have signed a letter pointing out that the Brexit referendum was nonbinding, and that the prime minister cannot make such a significant decision without consulting Parliament.  It’s possible that until Parliament affirms the extrication from the European Union, it won’t legally take place.  London’s High Court is expected to issue a ruling on Parliament’s role in Brexit on October 13, but an appeal is expected no matter what the ruling—sending the case to the U.K. Supreme Court to be heard in mid-December.

It may be helpful to remember that May herself advocated remaining in the European Union prior to assuming her current leadership position.  There is speculation that her uncompromising timeline on Brexit is simply a way to reassure voters that she has heard their message.  Then she can work for a so-called “soft Brexit,” where the country will control its borders via liberal work quotas, and there will be little changed in terms of trade and finance.

Meanwhile, despite the dire predictions, there has been no British recession as a result of the unexpected vote, and little has changed in regard to London’s status as Europe’s leading financial center.

Sources:

http://www.bloomberg.com/news/articles/2016-10-02/may-to-pull-brexit-trigger-by-march-as-u-k-to-enshrine-eu-laws

https://www.ft.com/content/a859227e-88bf-11e6-8cb7-e7ada1d123b1?ftcamp=published_links%2Frss%2Fcomment%2Ffeed%2F%2Fproduct

http://www.reuters.com/article/us-britain-eu-may-speech-idUSKCN1220LM

 

 

About Objectively Speaking

Tom Batterman, founder of Vigil Trust & Financial Advocacy and Financial Fiduciaries, LLC is in the business of representing the best financial interests of his clients. Having provided objective, fee-only financial management services for over two decades, he specializes in managing the investment and related financial affairs of individuals and mutual insurance companies who do not have the time, interest or expertise to manage such matters on their own. As an objective, unbiased professional who takes on a fiduciary responsibility to his clients, he guides clients to the financial decisions they would make themselves if they had years of training and experience and the time and expertise to fully research and understand all of their options. Founded in 2010 as an outgrowth of Vigil Trust & Financial Advocacy, Financial Fiduciaries, LLC is a financial management solution for individuals and mutual insurance companies who recognize they do not have the time, interest or expertise to properly attend to their financial matters on their own. While there are many financial “advisors”, most of them have investment products to sell and the “advice” they provide is geared toward getting their clients to engage in a purchase. As one of the rare subset of advisors known as “fiduciary advisors”, Financial Fiduciaries does not sell any investment product so its guidance is not compromised by conflicts of interest which plague ordinary advisors. Prior to his employment in the financial industry in financial advocacy and trust positions, he worked at a private law practice in the Wausau area in the areas of estate planning, tax, retirement planning, corporate organizations and real estate. He is a graduate of the University of Wisconsin-Madison and the UW-Madison Law School and has during his career held Series 7, 24 and 65 securities licenses. A longtime resident of the Wausau, Wisconsin Area, Tom is active in the community. He enjoys golf, curling, skiing, fishing, traveling and spending time with his family.
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