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Brexit Newsletter April 2019
Brexit Newsletter April 2019
The state of Brexit
KPMG Luxembourg event in New York City
We are delighted to host a special event at the Luxembourg House in New York City with the General Consul Jeanne Crauser on 25 April on BREXIT- Impacts on business and distribution models for US Asset Managers.
Brexit extended!
At an emergency EU summit in Brussels on 10 April, the EU 27 offered the UK a Brexit extension until the end of October with an assessment in June. Although Theresa May had sought an extension to 30 June, Brexit day has now shifted by another six months. This adds both uncertainty for businesses and leaves the possibility of Britain holding European elections next month open.
Talks between the Conservatives and the Labour Party to break the Brexit deadlock are still ongoing, however, in order to for them to progress, both sides must compromise.
On one hand, the latest extension gives more time for the UK to accept Theresa May’s deal or to find an alternative way forward. On the other hand, businesses perceive this decision as a further enhancement of the current uncertainty. Nevertheless, some asset managers welcome this delay as it gives them more time to plan and prepare for the forecasted disruption due to Brexit.
So now what?
Even though there is no fixed timeline, it has been widely anticipated that Theresa May will bring her deal to vote before the European elections in May. According to the Financial Times, she is using the talks between her and Jeremy Corbyn as a “political cover” that will give her more time to convince the rest of the MPs to support her deal. The Prime Minister believes that the threat of a softer Brexit and a possible second referendum will help her when the UK Parliament comes back from a recess next week.
In sum, it is beneficial for both Labour and the Conservatives to stall the process and although local and European Parliament elections could possibly bring the stalemate to an end, no progress is expected in the near future.
KPMG Luxembourg update:
Check our Managing Brexit page for more updates! KPMG is helping organisations across the world respond to this unprecedented change as the UK prepares to leave the European Union. Explore our pages to access expert analysis, opinion and guidance, so you not only mitigate the effects of Brexit but use it as a catalyst to reset your future.
Sources:
© 2020 KPMG Luxembourg, Société coopérative, a Luxembourg entity and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
