Sterling dropped half a percent last night after lawmakers rejected four Brexit proposals, heightening Britain’s uncertainty just 10 days before it is due to leave the European Union. As of 09:10AM UK time, the pound is trading at €1.1639 against the euro, down 0.3 percent from opening levels. At the same time of writing, Sterling is worth $1.3027 versus the US dollar. It had last night dropped a quarter of a percent.
The Commons once again failed to break the Brexit deadline last night with a string of alternatives turned down by MPs.
Among those rejected was a call for a customs union with the EU, which missed the mark by just three votes, while a demand for a second referendum was defeated by 12.
A Norway-style deal put forward by Nick Boles was turned down by 21.
Mrs May will today seek to break the Brexit deadlock as she gathers her Cabinet for a marathon five-hour session of crisis talks in Downing Street.
It comes as EU chief negotiator Michel Barnier said a no-deal withdrawal was becoming more likely by the day.
Mr Barnier said the UK now had two options, quit the EU without a deal, or seek an extension to Article 50.
Speaking in Brussels, Mr Barnier said: “If the UK Parliament does not vote in favour of the Withdrawal Agreement in the coming days only two options would remain.
“Leaving without an agreement or requesting a longer extension of the Article 50 period.”
He added: “No deal was never our desired or intended scenario.
“But the EU is now prepared.”
He said no deal “becomes day after day more likely”.
Mr Barnier said: “The UK may ask for another extension. Such an extension would carry significant risks for the EU.
“Therefore a strong justification would be needed.
“We have always said that we can accept a customs union, or relationship along the style of the Norway model.
“In fact, however, the Political Declaration today can accommodate all of these options already.
“It leaves the door open for a variety of outcomes.
“But if the UK so wishes we are ready to rework the Political Declaration.”
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