Insurance and financial firms in Britain will be cut off from the European Union if there is no Brexit deal, warned the European Commission. With just 100 days to go, Britain faces three choices: agreeing a last-minute divorce deal with the EU, halting Brexit or leaving the bloc without a deal.
Prime Minister Theresa May’s failure to find a deal in the British parliament means a hard Brexit is on the cards. Bank of England Governor Mark Carney said leaving the EU with no transition could be akin to the 1970s oil shock.
As reported by the Reuters news agency, fears are growing that the political brinkmanship in London could lead, as May has warned, to Britain leaving without a deal, businesses and the EU’s executive ramped up planning for such an eventuality.
“Businesses of all sizes are reaching the point of no return, with many now putting in place contingency plans that are a significant drain of time and money,” the heads of Britain’s five biggest business lobby groups said.
European Commission President Jean-Claude Juncker said a disorderly Brexit would be an “absolute catastrophe”.
The world’s biggest corporates, ranging from Apple and Toyota to J.P. Morgan and Goldman Sachs, have cautioned that Brexit could complicate their businesses.
According to Reuters, May’s decision to delay a vote on her deal until mid-January has been criticised by some lawmakers who accuse her of trying to force parliament into backing her by running down the clock as the March 29 exit day approaches.