UNITED STATES, WASHINGTON (OBSERVATORY) —
The prolonged process of Britain’s exit from the European Union led to a crisis in both the economy and the political sphere of the country.
Christopher Pissarides, professor of economics at the London School of Economics and Political Science (LSE), Nobel Laureate in Economics in 2010 (“for market research with search models”), said that the current situation is a “disaster for the economy” of the UK.
In an interview with CNBC on the sidelines of the Ambrosetti financial forum in Italian Cernobbio, he also noted that, in addition to economic uncertainty, there is a political crisis in the UK.
“What is happening [with the British exit from the EU] is a disaster for the economy, if you evaluate this situation from an economic point of view.
The country looks uncontrollable: we don’t even know who will be the Prime Minister next month, when it will be necessary to accept a serious decision. Companies will not make new investment decisions because they don’t know how the situation will develop.”
Former London Mayor Boris Johnson, who replaced Theresa May as British Prime Minister in July this year, did not follow her example and instead of renewed attempts to endorse an agreement on the conditions for withdrawing from the EU in Parliament, announced the suspension of the work of the House of Commons for a month. Many experts noted that in this way Johnson tried to avoid parliament blocking exit from the EU without a deal.
However, this decision provoked protests and outrage both among members of the opposition parties of the House of Commons and in the ruling Conservative Party itself.
As a result, during the first week of September, the British Prime Minister first found himself in a situation where the ruling party lost its majority in the lower house of the British Parliament, and then was unable to convene new parliamentary elections, which he hoped to hold.
The House of Commons on Wednesday, September 5, by a majority vote approved the bill that forbids the government to withdraw the country from the EU without an agreement and obliges the Cabinet of Ministers to ask the EU to postpone this process until early February 2020.
On Friday, September 6, the House of Lords , the upper house of the British Parliament, also approved the bill.
— House of Lords (@UKHouseofLords) September 6, 2019
As a result of these actions of both chambers of the British Parliament, the British Prime Minister actually lost the authority to withdraw from the EU on October 31 – in other words, the cabinet of ministers Boris Johnson lost the opportunity to make decisions on one of the most important issues of British foreign policy.
Against the backdrop of this situation , Brussels stated that negotiations on Britain’s exit from the EU have now turned out to be “paralyzed.”
This article is written and prepared by our foreign editors writing for OBSERVATORY NEWS from different countries around the world – material edited and published by OBSERVATORY staff in our newsroom.
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