‘Brexit to be put on ice, but only for a few months’

LONDON: Britain’s scheduled departure from the European Union on March 29 will be delayed by a few months, a Reuters poll found, and a majority of economists say the two sides will eventually agree a free-trade deal.

Prime Minister Theresa May is seeking to rework the Brexit deal she agreed with EU leaders and has raised the possibility of a delay of the departure date until June.

All but three of 54 economists who answered an extra question in the Feb. 28-March 5 poll said the more than four-decade marriage between Britain and the EU would not be dissolved in a little over three weeks time as planned.

Instead, there will be a brief extension, with over threequarters saying it would be over before July.

“The wind seems to be blowing towards a shorter extension -at least from the UK side of the equation – but it could easily be longer given that two-three months is unlikely to be long enough to break the deadlock,” said James Smith at ING.

May reached a deal with the EU last year but it was resoundingly rejected by British lawmakers.

However, she is hoping to win over enough of them to pass it by agreeing a legal addendum with the EU on the deal’s most controversial element.

A “backstop” to ensure no hard border between EU-member Ireland and British-ruled Northern Ireland has been the major hurdle.

But with lawmakers eager to avoid a potentially disorderly no-deal exit, an extension appears likely to try and resolve the issue.

The chance of a disorderly Brexit fell to 15 per cent in the latest poll, its lowest since Reuters began asking the question in July 2017, down from the 25 per cent it has hovered around. — Reuters