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Opinion | Why a no-deal Brexit is a big deal for Britain and the rest of the world
- With Boris Johnson tipped to become Britain’s prime minister, a no-deal Brexit is suddenly likelier than ever, but few people really understand what that means for businesses and the economy
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As the British Conservative Party leadership race enters its final few days, Boris Johnson remains the overwhelming favourite to become prime minister this week. The clash between Johnson and Jeremy Hunt has seen a no-deal Brexit assume growing likelihood, despite the fact that this disorderly outcome is still widely misunderstood.
In trading last week, markets were rattled following Brexit remarks from both Johnson and Hunt. With the pound battered in foreign exchange markets, the UK currency fell to its weakest point since April 2017.
With a thick Brexit fog hanging over the nation, there is only one certainty: the legal default position that Britain will leave the European Union (EU) on October 31, barring a further extension, whether an exit deal is agreed or not.
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The no-deal prospect has been widely dismissed in much of the period since Britain’s 2016 referendum, including by Theresa May’s government. But this scenario has become a growing possibility with Johnson asserting that Britain must leave on October 31, come what may.
However, the no-deal concept is, even now, widely misunderstood by much of the British public, let alone international audiences. It would not simply mean that Britain would automatically leave the EU without many, if not all, of the rules that regulate its relationships with the union.
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